Bright future seen for lamb sales to U.S.

Press, 9 May 1978, Page 20

Bright future seen for lamb sales to U.S.

; A bright future for Newi ’Zealand lamb sales in the United States has been forecast by Mr P. Wakelin, general manager of the New Zealand Meat Development I Company (Devco), He told the annual conference of the meat and wool section of Mid-Canterbury Federated Farmers that vigorous marketing and supplying a product, that consume. j wanted could give New Zealand virtually un-’ limited sales, reports the Press Association. The latter requirement was the most important. In the past New Zealand had produced a product and attempted to sell it. Now it had to assess the customers’ needs and produce a product to suit.

Breaking into the North American market was a challenge, particularly because its people traditionally favoured fresh produce. In the United States chicken was cheap and beef was king. A survey had shown that 40 per cent of the population disliked lamb. How-

ever, 33 per cent was partial to it and this represented more than 70M people. “It is this sector that we are trying to reach,” said Mr Wakelin. The potential for lamb "i

ithe United States was enormous because sheep numbers there had dropped from about 40M in the 1940 s to about 13M now. I Home-grown lamb was now out erf the reach of the ordinary consumer because it retailed about $2 per ib. New Zealand lamb competed well with American pork and beef at $1.40 to $1.50 per lb. I American supermarkets, of which there were about 45.000, were all ruthless and had “given us a hard time l over the last three years.' Devco was now concentrating on selling lamb to leading hotels and restaurants, which represented about 25 per cent of the projected 2M lamb sales to the United States this year. About SIM would be spent

on promotion alone. Of next season* Mr Wake- * li_. said that the lamb sched- . ule should be much higher • than the present one. “World markets are strong . and estimates are that lamb numbers at home will be - down by 500,000 to a million. However, our ability to i compete will be determined '

1 by costs from the farm gate . i to market.” Mr Wakelin said that , s overseas currency rates also •« t had a bearing because if • sterling declined so did lamb * t prices.