Russia helps to firm N.Z. mutton price

Press, Volume CX, Issue 32460, 21 November 1970, Page 1

Russia helps to firm N.Z. mutton price

(By our industrial reporter)

The sale of 11,000 tons of ewe mutton to Russia—u announced yesterday by the negotiating brokers, Amalgamated Dairies, Ltd, of Auckland—is expected to firm the prices that Japanese importers will have to pay for New Zealand meat.

In mid-April of this year the Japanese were paying 22d sterling for New Zealand ewe mutton, but by last month all they were offering was 14fd per lb. Very little was sold to them at this price.

The Russian contract was negotiated for S4m—or thereabouts —which gives a price per lb of about 16{c, or 18Jd sterling. Even at this price, the Russians could not obtain as much as they wanted.

The meat is to be shipped by British Conference Line vessels to the Black Sea in February and March, and to the Baltic in April. For months past, according to New Zealand trade sources, the Japanese buyers have been running their stocks down to the limit and negotiating with alternative suppliers, mainly the Australians. A number of Australian abattoirs, through being unable to meet the American hygiene requirements, have been left with surpluses which they have been prepared to sell at almost any figure.

j The Japanese, like the Russians, appear to favour the I New Zealand product, and I they must now decide I whether to bffer acceptable . prices—which will have to be much higher than last month’s rates—or to wait still further in the gamble that New Zealand will have to drop its prices later. They will also have to consider the prospect of further competition from the Russian buyers, whose requirements are still far from satisfied. The Russians took some thousands of tons of ewe carcases from New Zealand earlier this year and appar-

ently were very pleased with both the quality and delivery. Seven weeks ago, at the end of the last export season, New Zealand suppliers were left with some 10,000 to 12,000 tons unsold. The current Russian deal obviously takes a good deal of pressure off them.

The Russians are reported to have a buying mission in Australia now, and on this side of the Tasman it is hoped they will be successful. Every pound sold to the Russians, it is reasoned, means a pound the Japanese will have to buy from New Zealand—at a higher price.