Meat Market Prospects

Press, Volume CIV, Issue 30947, 31 December 1965, Page 8

Meat Market Prospects

On a pound weight basis meat prices on world markets are not expected to remain at last season’s record levels, according to “Meat Market,” a publication of R. and W. Hellaby, Ltd.

The December issue of the journal in discussing meat export prospects says that for the last six or eight weeks nearly every pound of boneless cow and bull beef killed in New Zealand has been bought by American buyers for use in hot dogs, hamburgers and frankfurters. It is too early yet to say how strongly the demand will continue, "Meat Market” says.

However, eariy-season beef demand from the United States has been the highest for two years. This has been the most marked feature of eariyseason trading. The rapid falloff in American buying in the previous 18 months had been partly responsible for the big drive to develop new markets in Europe.

In the period from October 1 last year to October 30 this year the United States took between 48,000 and 49,000 tons of New Zealand meat compared with nearly 70,000

tons in the preceding comparable period. In Europe, says "Meat Market,” the demand for beef continues—it is particularly marked in West Germany—but supplies in some countries are returning more to normal. In England opening-season prices for lamb are down on last year’s record levels—partly because the market has been trying to absorb larger hold-over quantities of last season’s lamb. (However recent figures put the holdings of lamb and lamb cuts in the United Kingdom at December 3 at only a little more than at the same time last year—l6,soo tons compared with 13,200 tons). In Japan, says the publication, the demand is expected to continue for ewe mutton—mainly as an ingredient in Japanese “sausage meat” production. But as the Japanese had indicated by withholding sales last season, they will only buy at what they consider a reasonable price.

The likely reduction in the price of mutton could make it a more attractive seller in other countries. The present lower lamb values in England could also encourage other countries to buy—possibly countries like Greece which bought record

quantities two seasons ago when prices were lower. Japan, too. has shown an increasing, if small, interest in lamb—one 100 ton shipment has already left for there this season.

All indications so far this season indicated that: —

New Zealand would again be able to sell all the meat it produced. World prices a lb, however, were not expected to remain at last season’s record levels. But New Zealand might again pass the £loom mark in meat earnings if the build-up in livestock numbers was sufficient to stimulate record production.

The record prices of the last 18 months had been caused by the shortages of beef in Europe. Three factors indicated that prices might not continue at record levels:

European livestock numbers had increased in the last year. The abnormally high beef prices in Europe had forced housewives to switch to other products, particularly pork and chicken. Argentine exports, down drastically for the last two to three years, are expected to increase.

Other countries, such as Australia and Brazil, are also striving to increase beef production.