N.Z. lamb from Europe

Press, Volume CXII, Issue 33046, 13 October 1972, Page 1

N.Z. lamb from Europe

(From

MICHAEL ROBSON,

N.Z.P.A. staff correspondent)

LONDON, October 12. Some Continental importers of New Zealand lamb are running a thriving business exporting New Zealand lamb to Britain. Increasing quantities of New Zealand lamb—it is estimated that the present volume amounts to hundreds of tons—are turning up at Smithfield after a detour through European ports. The profit for the importers on the transaction at present runs at about five new pence (just more than 10c) per lb after they have paid channel shipping costs. This represents the difference between a c.i.f. (cost including freight) price of 12 to 14 new pence per lb the importers are paying New Zealand exporters and the 18 to 19 newpence per lb being realised at Smithfield.

This profit, however, is considerably less than that which was being made for most of the summer in London when English prices were 22 to 23 pence per lb. The European director of the New Zealand Meat Board (Mr Derek Fechney) acknowledged that the profiteering was taking place. “Obviously the practice comes about because of the price differential,” he said. “The only effective way to stop it will be to find some way to equate prices on the two markets.” The re-exported lamb is relatively easy to identify because of the different branding methods and according to sources in the meat trade is mostly coming by way of Rotterdam. The trade began with the threat of a national dock strike in Britain in May and June. With coolstore stocks in the United Kingdom at a low level, prices climbed steadily higher and Contin-

ental importers were quick to see the chance of a substantial profit. The most damaging aspect of the situation is the sabotaging of the Meat Board’s diversification scheme. Lamb which has left NewZealand under the diversification quotas is in point of fact still being sold on the United Kingdom market. . “Obviously this practice is damaging to the board’s policy of diversification,” said Mr Fechney. “Besides the price factor, another way of preventing this happening would be for New Zealand exporters to interest themselves more in the marketing of their meat and not just be content to sell it on a c.i.f. basis.” Meat traders were somewhat more philosophical about the whole matter and felt that declining prices in the United Kingdom would eventually take care of the problem.