Lower profits expected

Press, 23 September 1980, Page 23

Lower profits expected

. PA Wellington Profits from sales of New Zealand lamb in North America are expected to be down this year on the $4.3 million recorded last year, after fierce competition from other meats. Total sales of New Zealand lamb in the market are expected to be up on last year, thanks to a very aggressive $2.3 million promotion campaign. Pricing competition from other meats this year was the severest New Zealand lamb had ever faced in North America, said Mr Wakelin, general manager of Devco, the company which has sole control of New Zealand lamb exports to the region. Total exports were likely to be up from about 1.9 million lambs last year to almost two million this year. Sales were likelu to increase from $57.8 mil-

Hon to more than $63 million. “I do not think we have ever worked under greater stress to achieve our results,” said Mr Wakelin. “We are rather delighted that we are likely to come out of the year with our market position still maintained.” The promotion campaign, the costliest mounted by’ any New Zealand export company, says Mr Wakelin, included the television "Little Bo Peep” advertisements, press advertising, and promotion at retail level.

Devco is keeping a low profile on threats by the United States • Woolgrowers’ Association to fight New- Zealand lamb exports to the United States. The woolgrowers have been threatening to file a petition asking for a 20 to 30 per cent duty on New Zealand lamb unless New Zealand agrees to voluntarily restrain lamb exports there.