Lamb returns analysed

Press, 3 June 1983, Page 8

Lamb returns analysed

The price of a prime lamb trebles from the time it leaves a farmer’s gate in New Zealand until it is bought by a customer in Britain. In a breakdown of costs prepared by a meat export company in April, a farmer received $20.60 for a PM grade (14.30 kg lamb after deductions of 21c in levies to the Meat Producers’ Board and Federated Farmers. The retail cost of the same lamb in Britain would be $NZ60.63.

The net price in the New Zealand schedule was $15.79 to which was added a Government supplement of $4.51 and Meat Board supplement of 51c. Killing, freezing, buying and administration charges totalled $9.84 which make the ex-works cost of the lamb as $25.63. When added to transport, storage (five weeks), and interest charges, the cost of the lamb at the export shipping port increased to $27.70. Ocean freight, and insurance boost the price by another $9.54, and after duty has been paid the lamb has cost $40.96 when it has reached a British port. Transport charges within Britain and commission totalling $5.68 make the price to the retailer $46.64. A 30 per cent markup by the retailer gives a final price to the British customer of $60.63.