$30M lamb contract to supply Egypt

Press, 6 October 1988, Page 21

$30M lamb contract to supply Egypt

PA Wellington The New Zealand meat industry has won a $3O million contract to supply Egypt with 12,000 tonnes of frozen lamb carcases in 1989.

The Auckland-based Farmers Co-operative Producers Meats, Ltd, acted as the agent for the contract which is for frozen lamb carcases in the 9kg to 20kg weight ranges, said a marketing executive, Mr Ross Montgomery.

The contract was won against competition from South America, Australia and Eastern Europe, Mr Montgomery said. “The contract price is most encouraging, and should provide a good benchmark for

opening prices to other world markets,” he said. He also welcomed the wide range of grades in the contract because most of New Zealand’s markets bought only specific weight grades. New Zealand began supplying the Egyptian Government Company in 1983. The first contracts were for the annual Birman Religious Festival. From 1983 to 1987, it had secured contracts for 2000 to 3000 tonnes annually and Producers Meats had signed two contracts this year involving 5500 tonnes. Mr Montgomery said New Zealand’s main advantage in negotiations was the reliability of its

product and the good working relations developed with the Egyptians over the last three years. Egyptian business to the public sector was designated as a “single seller market” by New Zealand, with Producers acting as the meat industry’s managing agent. "In our negotiations, New Zealand had to ensure the price provided a satisfactory return to our farmers, but did not exceed the subsidy budget of the Egyptian Government,” Mr Montgomery said.

The contract will be shipped on four charter vessels for delivery to the Port of Suez in January, June, July and September.