Not enough lamb going to Britain

Press, 22 May 1981, Page 15

Not enough lamb going to Britain

Assuming that prices for lamb over a period of about a year in the United Kingdom were comparable with those in other parts of the world, Mr G. K. Forshaw, managing director of Towers and Company, Ltd, of London, said in Christchurch last week that he thought it would be desirable for New Zealand to send more lamb to Britain than it was doing this year. Towers is a marketing company owned by Waitaki NZ Refrigerating Ltd, the Southland Frozen Meat Company and Hawke’s Bay Farmers Co-operative Ltd, which markets meat in the United Kingdom and Europe for those companies and also a number of other New Zealand shippers. Going back three years, he said that there was a market in Britain for about 200,000 tonnes. This year New Zealand would be sending about 140,000 tonnes. In the country’s long-term interests this was possibly too low. He would rather see about 175,000 tonnes going. Mr Forshaw said he felt very strongly that it w’ould be wrong for New Zealand to supply the further 7500 tonnes that it had an option to send to Iran this year on .top of the 102,000 tonnes already going there. The despatch of that lamb to the United Kingdom would help with the-, supply position there and also; help to strengthen New Zealand’s negotiating, position in _the Iranian market next year. Mr Forshaw sees some “risky” factors in the Middle East market. These included the political instability of the region and also if New Zealand got so dependent on these markets that it had nowhere else to send its product it could find itself receiving lower prices than at present. Mr Forshaw put the recent strength of the British market for New Zealand, lamb down to several factors — less New Zealand lamb going there than last year; the recent freak blizzard in the main sheep producing areas of the country that put back lambs getting ,to the slaughter stage by two or

three weeks giving more selling opportunities for New Zealand lamb; and also the high price of other meat, and particularly beef due to less beef going into the British market from L Ireland. Looking ' ahead, Mr Forshaw Said he did not think that one could say that prices. in October- would be the same as they were now, but he thought that they would be higher than had been anticipated two months ago.'.. As a result of the effects Of the storms already mentioned, the low stocks of lamb in store in . the United Kingdom and the forecast shipments of New Zealand lamb still to be made, he predicted that prices for New Zealand lamb were likely to be good for the rest of the year. He said it was possible that New Zealand lamb might on occasions actually sell, at .higher prices than fresh English lamb.: There could, however, be a possible effect of high prices on demand. When prices rose sharply the movement attracted more attention, whereas there was a much slower consumer reaction if the rise was more gradual.