U.S. beef demand disappointing

Press, 11 July 1979, Page 10

U.S. beef demand disappointing

PA’ Wellington Early predictions for a particularly strong beef demand on the United States market have proved unfounded according to Borthwick’s beef product manager, Mr I. Reid. To exporters of beef in New Zealand it was a disappointment after early optimism for a high-de-mand United States market season, Mr Reid said. New Zealand exporters enjoyed a very definite demand for beef on the United States market between January and midApril this year, and a correspondingly strong projected demand for hamburgers and beef products in the summer season, he said.

However, as the American summer progressed, more pork than expected became available on the United States market at a

lower price than predicted by New Zealand exporters.

A wet American spring delayed the start of the outdoor barbecue season which depressed the demand for beef, and a general truckers’ strike in the United States interrupted distribution and put a brake on normal trading, Mr Reid said. The energy crisis had kept travellers off the roads and away from fastfood outlets, cutting the demand for replacement supplies. New Zealand and Australia had shipped a bigger than normal beef quota allocations to America in the first six months of 1979, to take advantage of higher prices, he said.

These conditions meant that a year opened with prices paid in New York on a c.i.f. basis of about 5U51.10 per lb for New

Zealand boneless manufacturing beef, and then reached a peak of around SUSI.4O per lb (c.i.f. New York) by the’ end of April, but experienced prices at the end of June of about SUSI.IS (c.i.f. New York) —a dramatic drop. According to Mr Reid, New Zealand exporters have been disappointed by the turnaround in the United States although the prices were stHl better than last year’s. In view of the relatively low markets at present price exporters had become reluctant sellers. New Zealand exporters would still fulfil their quotas bearing in mihd that the United States market was the largest in terms of derqand and highest price paid.

Market demand was expected to increase in the near future but not up to the high level of midApril, he said.