Local meats challenge

When Tom Olaaiga, of Alaoa, Vailima, returned to Samoa in 2008 to set up his family business, he wanted to be sure that it would work.

So the former resident of Australia put four years into researching the market, customer preferences and target markets. It took seven years to build the facilities, phase by phase as the family were unable to get a loan.

Construction was completed in 2012.

While others may have given up due to lack of finances, Mr. Olaaiga was determined and he believed in the mission. He wanted to be his own boss.

In February last year, Mr. Olaaiga’s dream came into realisation, when the business, Samoa Meat Supplies, opened at their family home at Alaoa.

This was due to the support of his wife, Orepa, and his mother, Teu Lolohea.

His determination to revive the business, in which he and his siblings had grown up, had paid off.

Back in the eighties, his parents operated a family business, known as TNT and Sons. This was owned and operated by his father, Olaaiga and Teu.

In the early 1990s, it ceased.

“I’ve always believed the meat industry was viable and so I decided to come back.”

As business manager, Mr. Olaaiga supplies fresh beef for a lot of restaurants, most resorts at the southern coast of Upolu, and some of the major hotels in Apia.

He also provides for the local catering business and the booming fa’alavelave industry.

Then there are the walk-in customers, who are predominantly palagi and prefer to choose their cuts of meat.

“A lot of them prefer factory direct and they like to go into a chiller and pick.

I want that! I want that! It’s been really good. It has been profitable.”

With locally produced meat, the company sells cheaper than its competitors. This is due to having less liabilities and overheads and operating from the family owned property. Thus, there is no rent.

“We’ve positioned ourselves so we can be sustainable in the next five, ten plus years,” he said. “Although the competition is really hot here in Samoa, but we always try and steer in the right direction and prepare for the risk that might come ahead, because meat and pork are our only commodities at this stage.”

This may soon change. During the recent Trade Show at Liverpool, Sydney, Australia, Mr. Olaaiga met exporters who were interested in distributing frozen goods to Samoa.

Samoa Meat Supplies also gained exposure with the Samoans in Australia, so that when they came home, they would buy from them. Arrangements were also made with local businesses there, where people could pay for meat from the company, and once notified, the order would be prepared and the recipient here in Samoa, informed. This service starts this week.

Mr. Olaaiga also said that featuring the business on the Samoa App for mobiles has brought in new customers. It is the only business listed under the word ‘meat’.

Meanwhile, in order to meet the demand, the business requires 13 to 15 carcasses at 300 to 400kilos a week. Sometimes, they are offered smaller carcasses, that are barely 150 -200 kilos. The business then needs 20 to 25.

“With 400 kilos, there is a big difference, more meat. And these days, carcasses are a lot skinnier.

Less meat, more bones. Less protein, didn’t have enough grass, water, it wasn’t raised well and it’s a waste of money.”

And when Samoa Meat Supplies is unable to meet the minimum 13 carcasses, it means the meat is shifted around and customers prioritised. Bulk orders will always be catered for but there are also the walk in customers who spend an average $100 to $150 on orders.

“We try to make the price to the farmers more attractive so that we still have the consistent supply. It benefits the farmers, benefit us as well. “

Although they have an agreement with the farmers to constantly supply at a certain price, it can be difficult at times. Last Christmas, there were hardly any carcasses.

“Right after Christmas, boom! There was a big flood. I guess they had money from overseas, didn’t need to slaughter.”

That left the business overstocked and they had to turn it over quickly.

Meat was sold cheaper in order for the chain supply to continue, otherwise the farmers would get upset and go and supply others.

The advantage of the locally produced beef is that the cows are grass fed. Mr. Olaaiga said it makes for different flavours, different fat content, different textures and quality. It’s also chemical free. There is also a difference in taste, quality and colour.

But the slaughtering process is also an influencing factor on the quality of meat. Mr. Olaaiga said that the Ministry of Agriculture and Forestry would be introducing a mobile slaughtering unit, a truck that would slaughter animals.

“We support that because it means they are slaughtered in the most appropriate way as according to international standards.”

It means that the cow would have rested for a 24 to 48 hours period before being slaughtered. In doing so, stress levels are minimised.

“If the animal is stressed then the meat is tough and it takes awhile for the cells to break down and it could take weeks.”

Today, a lot of cows are slaughtered under trees or at the back of the ute.

By the time it gets to Samoa Meat Supplies, the colour has changed and is turning dark red.

“It’s not the type of meat that I would sell to you. I’ll sell it to someone else for a different cooking method but we try and get value for our money.”

“We want to do the right thing. We want to give the people the real meat cut. If i know the meat is bad, I’ll tell them, look the meat is bad. I like to retain our customers as much as we can.” For the first eight months of business, Mr. Olaaiga got his customers through word of mouth.

There are the High Commissioners and people in private sector. Word spread fast. To date, he has been able to maintain these customers.

The business also sells size 2 and 3 pigs. Most pigs go to Tokelau. They are bought by Mr. Olaaiga’s Tokelau customers and sent off by boat to their family, especially on special family occasions.

“Our goal is to dominate the market. We prioritise food safety and for people to eat healthy. We trim fat off and we want people to live a healthy life and still eat meat.”