Lamb Price Swing In U.K. May Limit U.S. Trade

Press, Volume XCVIII, Issue 29077, 14 December 1959, Page 16

Lamb Price Swing In U.K. May Limit U.S. Trade

Factors are at present working against the development of trade in lamb between New Zealand and the United States, according to trade circles. The very same price factor which diverted New Zealand beef from the British market to the United States is now tending to limit trade in lamb with the United States and Canada. With the price for some grades of New Zealand lamb rising by up to 2d per lb on Smithfield market in the last two weeks offers from North America do not look so attractive now and what business is being transacted is “only a drop in the bucket" compared with the total numbers of lambs likely to be available in New Zealand this season.

Reports from the United States that the Tariff Commission is to look into whether imports of New Zealand and Australian lamb and mutton are threatening to injure the home industry are also not calculated to stimulate trade. The opinion in some quarters in the meat industry is that this trade should be developed gradually and with great care—that undue pressure may

have the result for New Zea-

land of closing it down or of limiting its scope. However, according to another view, any suggestion that the bottom has fallen out of the American market as a result of the movement in the United Kingdom market would not be soundly based. The American market, it is stated, follows the movements on the United Kingdom market and there must be a period of adjustment until a basis of trading develops, particularly as the rise in the British market has occurred in such a short space of time. In this opinion the prospects of making sales on a rising level of prices may be greater than when prices were falling and traders were waiting to see what was going to happen. In any case it is too early yet to say what turn the North American trade in lamb may take. Local exporters are, however, agreed that the trade in lamb with the United States so far this season is very slow. "You. can see the trend in business,” commented a representative of a local meat company. "The producers in California are making themselves felt and the traders do not seem to be very optimistic, and of course the way things are going at present the United Kingdom market may be the better market in spite of the weight of numbers of lambs. "You could hardly call the tone of the lamb market with North America strong. I think that there is a little business offer-

ing but it is at a price and that price is not particularly attractive.” And there was Australian competition in this market also to be taken into account, he said. “I think that the Australians are definite bears on the market—what they lack in quality they are prepared to sacrifice in price.” “All the business that we could point to would be just less than a drop in the ocean compared with 17m lambs,” said the spokesman. "You can get an offer of 1000 but of course they may be making that sort of offer to a lot of different people.” The reference to the 17m is to .last season’s export kill in New Zealand and while the Minister of Agriculture, Mr Skinner hinted last week that this season's kill might be smaller this spokesman is inclined to the view that the national lamb kill could still be greater than last year. * i Another trade representative, ’ who is more familiar with the Canadian trade, said that the price currently offered from Canada was below London, where there had been a rise of 2d per lb for some grades of imported lamb in the last two weeks. AustraUa was still putting meat into this market and with the improved price for lamb in the United Kingdom it was fair to say that the North Americans could not measure up to the market, he said. Reporting that his company was trying to do trade with that part of the world and had just dispatched a shipment to another company spokesman said that the trade was of very small proportions and the movement in lamb prices in the United Kingdom would nut promote its expansion. In response to an inquiry about the North American lamb trade an official of a further company commented: "At the moment no-one wants to buy.”