Lamb sales show loss

Press, 18 February 1983, Page 3

Lamb sales show loss

PA Wellington New Zealand lamb sales to North America showed a loss last year of $1,783,000. For the first time in a decade, the company handling the North American market, the Meat Export Development Company, has made a loss. .In 1981 it made an aftertax profit of $1,121,000. The loss was announced yesterday, only days after the Meat Board disclosed that it had made a $59.7 million loss on its lamb and mutton sales last year. The chairman of Devco. Mr Ron Cushen. said that it

was a most disconcerting year. The company's annual report says that the total North American sales in 1982 were equivalent to 1,373,116 carcases. which is down more than 17 per cent on the 11month period to October, 1981. The carryover stocks were more than 17 per cent up on the previous year and were expected to cover nine months sales. The consumer demand in most importing countries in 1982 declined substantially under intense competition from alternative products of domestic origin, and the con-

tinuing impact of the general world recession, Mr Cushen said. “Canadian sales of 360,170 carton-equivalents represent 87.7 per cent of the best every year, while United States sales at 362,420 car-ton-equivalents are only a disappointing 63.4 per cent of the best year.” The value of sales was $7B million, compared with the 11-month period of 1981 at $76 million. The operating loss after tax of $1,783,000 reflected the difficult trading year, particularly when compared with the 1981 profit.