Iran buys N.Z. meatreport

Press, 2 June 1982, Page 1

Iran buys N.Z. meatreport

PA Wellington New Zealand signed a ST3O million lamb-for-oil deal with Iran yesterday, said meat industry sources in Wellington last evening. The sale is for about 60.000 tonnes of lamb this year, according to the "Dominion” newspaper. All the lamb will be paid for by sales of Iranian oil to a third party. New Zealand will not take possession of the oil, the newspaper says. An official announcement of the deal is expected at a news conference today. i The “Dominion” says that ■| shipments of lamb to Iran will begin soon. The price, a little over $l3O million, appears to be no higher than for last year's sale to Iran. But industry sources said it was acceptable, the “Dominion” said.

Details of the oil side of the deal were not available, yesterday. The delay in signing a contract with Iran has caused serious 'marketing and meat-storage problems. , Extra shipments of lamb' have been sent to Britain to ' relieve the pressure on storage space,, and some killing chains have stopped work. The initial amount of lamb involved is reported -to be 60,000 tonnes, with an option for 6 per cent more.' The Iranians originally sought 100,000 tonnes this year, and in previous years have negotiated more sales after the initial -agreement. In 1980-81 the initial sale was for 70,000 tonnes, made before the season began in October. Later sales brought the total for the year to about 107,000 tonnes, valued at more than $230 million.