N.Z. meat and wool prospects good for 1979-80 season

Press, 2 June 1979, Page 7

N.Z. meat and wool prospects good for 1979-80 season

Wellington reporter Meat and wool marketing prospects and prices should remain firm in the 1979-80 season, with beef showing particular promise, according to the Ministry of Agriculture. It predicts that between 85-90 per cent of beef exports are likely to go to the higher-priced United States market. Demand for beef in the United States was strong at present, but a lot would depend on future consumer and producer response to the high prices, said the Ministry’s chief agricultural economist (Mr B. Bell).

Higher prices this season had by mid-April enabled the Wool Board to dispose of about 90,000 bales from its stocks which at the start of the season, had stood at almost 202,000 bales, and these were expected to be further reduced before the close of the season.

Competition from synthetics, increased world wool supplies and rises in the costs of raw materials in 1980 should be offset by moderate economic growth in most major wool-consuming countries, said Mr Bell. An average auction

price for 1979-80 was estimated at 230 cents a kilogram, he said. Prices were expected to stay buoyant for the next two seasons. But increases in United States beef prices in 1978-79 were continuing this year, reflecting reduced herd numbers there.

An all-grades farm gate average beef price of about $1.02 per kilogram, after levey deductions, was expected, he said.

Lamb had been an exception to the upward trend for meat but prices were now firmer and increases were expected. The British truck drivers’ strike and the loss of the Iranian market had wiped out the lamb season’s good start. Stocks in Britain were about twice those held a year ago, and prices were still depressed, but they would probably firm and rise during the rest of the season.

The average schedule price for PM lambs at the end of the season was expected to be about 75.5 cents per kilogram, as

against last year’s figure of 66.9 cents. Last season’s mutton price depression continued into the early part of this year, mainly because the Russians did not buy much, said Mr Bell. Prices had now improved markedly, with sales of 50,000 tonnes to Russia and other sales to Japan and South Korea. Most of this season’s mutton had been sold and the outlook was for favourable prices to continue. The all-grades average farm gate price for adult sheep was expected to be about $lO a head. Firm wool prices reflect buyer demand in an international situation of short supplies.

The average auction price over the whole season is expected to be about 220 c a kilogram — about 15.5 per cent higher than last season’s 190.43 c a kilogram average. More sheep had resulted in more wool, said Mr Bell and wool production for 1979-80 was expected to rise again, to about 320325 M kilogrammes.