Lamb price warning
Federated Farmers has warned that meat companies will hasten their own demise if they do not continue to pay farmers reasonable prices for lamb.
“The days when the companies dictated the running to farmers are over,” said the acting meat and wool chairman, Mr David Petersen.
“If companies drop prices below the opening levels, as they show signs of doing, farmers will turn to other land uses so they are not reliant on lamb exports.” These alternative land use options were increasing all the time, he said, and included live sheep
exports and all wool farming. “That will mean that the numbers of lambs will drop, reducing throughput with the end result being far lower profitability for the companies.
"Proof that farmers will take this action if they don’t get decent returns for lamb is to be found in this season’s production figures which are forecast to be 33 million compared to 39 million a year ago.”
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Press, 5 December 1986, Page 26
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160Lamb price warning Press, 5 December 1986, Page 26
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