Arabs may buy more ram lambs from N.Z., Aust.

Press, 28 February 1986, Page 29

Arabs may buy more ram lambs from N.Z., Aust.

NZPA-AAP Melbourne The fall in world oil prices could help Australian and New Zealand farmers, according to the

giant agricultural agency, Elders Pastoral. Arab buyers were turning to Australia and New Zealand as potentially big suppliers of ram lambs, mainly because of the downturn in the Middle East economy caused by the drop in oil prices, said Elders Pastoral’s executive director for livestock, Mr Brian Dixon.

Other factors included the drought in North Africa, which had reduced supplies from that source, and the acceptance in the Middle East of trial ram lamb shipments by Elders during the last

two years. But Australian producers would have to supply lambs throughout the year to fully tap the growing market, Mr Dixon said.

“Last year some 200,000

ram lambs were included in shipments of live sheep to Saudi Arabia and proved very popular,” he said. • The Middle East could take up to a million ram lambs a year from Australia without affecting the traditional demand for old wethers. While Australia was keen to negotiate forward contracts, the Arab traders wanted to work in a free market governed by supply and demand. “We have said to them that Australian producers want an assured market and they have responded saying they will pay a premium for ram lambs above our domestic lamb prices,” said Mr Dixon. “However, the onus will be on Australian breeders to produce the lambs and have them available for when orders are placed.” He saw the market being developed progressively over the next two to three years.