Greater offtake of lamb cuts in U.K.

Press, 12 September 1987, Page 31

Greater offtake of lamb cuts in U.K.

PA Wellington The New Zealand Meat Producers Board reported a steady offtake for New Zealand product in Britain this week with the greatest demand for cuts rather than whole carcases. Domestic lambs were available in greater amounts than last week, probably due to the completion of harvesting. On the Smithfield market this week New Zealand PL grade lambs were quoted at 57.5 to 59.5 pence a pound (NZ333C to 344 c a kg). Demand for all meats in Britain is reported as fair for the time of year with satisfactory offtake at price levels close to last week’s. Bids for imported manufacturing bull and cow beef in the United States improved by US2c and US5c a pound cif respectively over the market prices quoted last week. Although the market prices were quoted at USll4c for bull (2400 c a kg) and 112 c for cow (393 c a kg), little product is being sold at these levels to end users.

Most activity is regarded as speculative trading between brokers in anticipation of quotas being triggered later in the year, and Importers covering themselves against spot market shortages because of the limited volume of New Zealand beef available. Progressively higher daily bids by importers have not been taken up; prices offered by end-users are about US3.SC below these. United States domestic prices have moved up in tandem with the higher bids for imported meat. However, end users are resisting higher prices and sausage manufacturers are switching their formulation from beef back to pork. Earlier, a shortage of pork and lower beef prices encouraged these processors to use beef rather than pork. All activity is centred around the spot market with little interest in the forward market, particularly as importers covered the forward position some weeks earlier.