Meat Board moves unset exporters

Press, 24 February 1977, Page 3

Meat Board moves unset exporters

The Meat Board's decision; to buy lambs in Britain and; store them for sale may] seriously rebound against the: lamb trade, according to the; chairman of the New Zea-; land Meat Exporters’ Council (Mr W. F. Leonard). British wholesalers, working on Dehalf of New Zea-: land exporters, had always j split heavy lamb shipments for sale later in the year, he said. This was accepted as; normal trading practice. Lamb prices in Britain traditionally fell during the first: two months of the year. This; fall had always been fol-j lowed by greater interest by I retailers to push sales, and raise prices, of New Zealand. lamb. This was already begin-1 ning to take place before the; Meat Board’s move. Mr Leonard said there had; been an over-reaction, largely; emotional, to the recent drop: in wholesale prices of lamb. I The price drop over the last 10 days reflected a reduction that would normally; have occurred over the last! six weeks. He said that conditions;

;had been much more difficult! ;,his year because of a siginificant decrease in spending! on al! types of meat. How-i (ever, the fall in the price of; (lamb had been less severe; than that of beef. “It should also be con-j sidered that the present level; (of PM grade lambs at 42p per: j lb is still about 12p above rhe; corresponding price last year.” ( This was hardly a catastro-1 iphic price level as the Meat Board had been quoted as! ;saying from London, nor did; |it show prices had fallen to! I record low levels as had also ; 'been reported, Mr Leonard said. I Meat Board officials in: !London expect a quiet lamb; market for a few days while] 'the impact of the board’s unprecedented intervention is assessed, says the London 'correspondent of “The Press.” ( “It’s still too early to tell I what will happen,” said a| (board spokesman. “Some of] 'the companies have millions; I of pounds tied up in the; ;lamb trade, and they will (have, to take time to decide

| what to do.” ; Prices at Smithfield on Tuesday were in line with I what the board’s new tradi ing company is offering, but board officials attached no I real significance to this. “What has happened is : that they’re saying, in effect, (‘until we decide what to do. the price will remain at roughly the level of the ; board's offer'.” said the ] spokesman. I No lamb has yet been bought by the board, and no (purchase is expected to be (made until at least next ! week, if then. The knowledge that the! board can intervene may be (sufficient to push prices up. : Some retailers, especially ■ (large supermarket chains,; are expected to welcome the board’s move which, al-; though pushing up wholesale! prices, might reduce the cost! Ito the consumer. ■ Retail prices may still fall: by five to six pence a pound; by the end of the month as I (the lower wholesale prices; ■ paid for lamb now in com-l pany storage work through to retail outlets. The board will launch its seasonal consumer advertising campaign today. This takes the form of a six-week concentrated effort, to be repeated in May, and uses the greater part of its 800,000 annual advertising budget. The start of the campaign: had been delayed because of, the short supply of lamb.