U.S. beef demand raises Chch prices

Press, 28 March 1979, Page 6

U.S. beef demand raises Chch prices

The strong American demand for export beef continues to push up the price Of beef in Christchurch shops. After last week’s rise of 10c a kilogram in the export schedule, the wholesale price of beef in Christchurch yesterday jumped Bc, and a fur-| ther rise is likely next week, i The increase to $1.23 a kilo-i gram showed when Assooci-i ated Meat Buyers, Ltd.: posted a new schedule, the “Bible” for determining how much Christchurch butchers pay for their meat. Because of the shortage of beef cattle, and competition for available stock, domestic prices are forced to keep pace with export prices.

Prices of up to $1.30 a kilogram at yesterday’s Addington livestock sale will also mean an increase in the local wholesale price. Mr D. A. Percy, a stockbuyer for A.M 8., said yesterday he had no idea how much the local schedule might rise next week. A survey of Christchurch butchers yesterday showed that people had generally accepted the steady rise in the

price of beef over the last six months. Expensive beef cuts, such as fillet and porterhouse steaks, were still selling well. The price of various beef cuts differed from shop to shop yesterday. The average prices per kilogram were: fillet ' steak. $5.60; porterhouse Steak. $4: roasting beef. $2.90: gravy beef. $2.37; beef mince, $2. ' If people are going to buy steak, they want something they can enjoy,” said an Ham butchery owner (Mr B. W. Sugden), who is selling more beef now than before Christmas.

The manager of Thacker Wholesale Meats, in Shirley, said that a year ago the wholesale beef price in Christchurch was 40c a kilogram. Customers were still buying beef, although not as much as in the past. “Beef is about 28c to 30c a kilogram dearer in rhe North Island.” he said. “It is frightening to think of what they will reach here in two to three months.” The manager of Fendalton Quality Meats (Mr R. M. McDowell) described the response to the beef price increases as “crazy.” In the last few weeks, he had sold more beef than for some time, and in 16 years as a butcher, had not seen such

a quick rise in price. He had had few complaints from customers.

; Mt A. Verkerk. a city butIcher, said that there was no I change in meat buying, ■although the weather deter- - mined which cuts of beef I were ponular. People were 'well prepared to pay higher prices, he said. Another city butchery ! owner (Mr J. N. Scanlon) ‘said that people were more willing to put up with increases on the more expensive steaks than on gravy 'beef or mince. A big demand (for fillet and porterhouse steaks still existed, although ■ he had noticed that some customers were choosing pork, as some cuts were cheaper than steak. Mr’G. Cockburn, the manager of the wholesale and retail division of Shacknls Meats, said that beef prices would continue to rise, although they would probably fall at the end of winter. Because beef formed a large part of the average diet. ' most people were aware of jthe price increases from the i outset, he said. I New Zealanders had lived !in a “fool’s paradise,” being I able to buy red meats at (prices which were “extraorjdinary” in comparison with the high prices in Britain and I the United States, he said.