Crayfish Sales To U.S. Boom But Drop Expected

Press, Volume CII, Issue 30155, 12 June 1963, Page 16

Crayfish Sales To U.S. Boom But Drop Expected

The export of, crayfish tails to the United States increased from £734.686 to £1.073.928 in 1962, according to the May issue of “Export News.” the trade promotion magazine of the Department of Industries and Commerce.

Since last September, however. the prices for tails have dropped and “Export News” says that reports now coming to hand from exporters throughout the country indicate that New Zealand wiU lose more than £lOO.OOO in dollar earn mgs by crayfish sales in 1963 It says there are three cause* foe this loss: over•upply to existing markets.

President Kennedy’s recent clamp-down on business expense accounts, and the high prices which led to consumer resistance.

Besides New Zealand, eight other countries are exporting crayfish to the United States Brazil’s recent entry into the trade and Australia’s increased productivity has tended to over-aupply the market at the price level it reached in September. Consequently prices dropped Some grades-fell to 2s 3d a pound

After President Kennedy’s clamp-down on expense accounts. the number of businessmen entertaining at expensive restaurants fell off sharply. This resulted to a slackening to one substantial market for crayfish. At the same time ‘he demand for crayfish had pushed prices up too high (many grades reached 9s a pound and higher) for supermarkets, even with bulk-buying discounts, and these cut down on their orders.

With lower prices, however, it is expected that supermarkets will start buying the cheaper grades of crayfish again This should help to stabilise the market

“Export News” says that taking these factors into account. now may be an opportune time for a further look into market prospects in other parts of the United States