Sluggish meat demand

Press, 1 June 1985, Page 24

Sluggish meat demand

Demand on the United Kingdom meat market has remained sluggish with the only increase resulting from the stocking-up for last Monday’s bank holiday, reports the New Zealand Meat Producers’ Board in its weekly market

report. Beef prices were steady and domestic lamb eased back to between 80p to 83p a lb (SNZS to $5.19 a kg) because of oversupply and is expected to drop back further next week.

New Zealand lamb sales were good and exceeded target last week, but agents believe sales will fall back this week because of the short week. Lamb is expected to enjoy a

steady trade through to midJune and then progressively ease. However, the board hopes the traditional fall off in demand for New Zealand lamb can be stemmed by the promotion and incentive schemes started this year. On the Smithfield market this week, New Zealand PL grade lambs were quoted at 65p to 66.5 p a lb (SNZ4.O6 to $4.16 a kg). Sales for imported manufacturing beef in the United States were again concentrated mainly on the spot market. Users were unwilling to take a position on forward arrivals of imported manufacturing beef and were only willing to pay the going price

for their immediate requirements.

This was causing a differential of up to US6c between the active spot market and the inactive forward market. With the poor forward demand and soft prices, offerings from New Zealand had been light.

The domestic beef market was steady. Some upward price pressure because of the short kill week had been offset by the latest Department of Agriculture cattle and feed report, which indicated marketing of fed cattle may not be as high as was previously expected. New Zealand cow beef is holding steady at USB7c a lb cif ($NZ4.66 a kg).