‘Broad’ agreement reached on Iranian lamb price

Press, 29 January 1986, Page 5

‘Broad’ agreement reached on Iranian lamb price

The meat industry has a broad agreement with the Government on the financing of an Iranian lamb contract but the details are still being worked out, according to the executive director of the Meat Industry Association, Mr Peter Blomfield. A four-man New Zealand team has been in Iran for a week seeking a new contract with that country for up to onethird of the season’s export lamb production. Newspaper reports from Wellington yesterday said that the Government was underwriting the pur-

chase by meat companies of farmers’ lambs to enable the exporters to pay higher prices than the animals would fetch if sent to rendering plants. The reports said this "guarantee” would last only until March 31. Meat industry sources said yesterday that guarantee was not the right word. The arrangement was to tide the industry over the period before an Iranian contract and the beginning of payments from that country. No details could be released yet, said Mr Blomfield. Meat companies reassumed control over export

lamb marketing in late December after three years of centralised control by the Meat Board. During that period the board incurred losses on sheepmeats exporting (over and above what was paid to farmers by way of supplementary minimum payments) amounting to more than $BOO million. New Zealand’s lamb over-production met increased consumer resistance to fat, as well as cheaper and subsidised white meat and from E.E.C. beef production and a rising lamb population in Britain. During the last month

the companies have substantially reduced payments to farmers, particularly for the prime lamb grades, the trimmer grades, and over-fat grades. A PM grade lamb now returns the farmer about $9 net for the meat value of a 13kg carcase, compared with $lB net during the period when prices were supplemented. The exporters’ schedule is favouring the production of Y grade or lean lambs, with less than 9mm of fat cover over the ribs. The lighter end of this lamb type, however, is traditionally sought by

Iran and should that country not buy, then a glut of YL and YM carcases might result

The newspaper reports said the exporters had told the Government that they would only be able to offer a schedule reflecting the rendering down value in the absence of any guarantees.

The Meat Board is going to be the prime contractor for an Iranian deal and all companies with halal killing plants would be able to contribute through their group structure.