Drought blamed for meat prices

Press, 26 October 1989, Page 2

Drought blamed for meat prices

By

DIANE KEENAN

High meat retail prices reflect increased prices for livestock which is in short supply, Canterbury butchers said yesterday. The president of the Canterbury Meat Retailers’ Federation, Mr Bruce Gray, said red meat prices were 51 per cent higher than at the same time last year and 62 per cent ahead of 1987. He said it was difficult to relate the $3.20 a kilogram paid

to farmers to the price of $l4 to $2O charged in butchers’ shops for premium cuts. “The $3.20 is a honed in price, but butchers are looking at a different basic price which takes account of stock purchases, killing charges, boning out costs, their margin and higher GST,” Mr Gray said. “At present we would be looking at an average price for beef of $10.50 a kilogram. Cheaper cuts would be selling for about $7 and the more

desirable steaks for $14.” Mr Gray said butchers had noticed consumer resistance at the present high prices. “People are buying less meat and even the cheaper cuts, mince and sausages are more expensive than last year,” he said. He advised butchers to continue applying their full profit margin. “At high prices butchers are selling less meat. It is important margins are retained so they

can meet their overheads.” Mr Gray said he blamed the present stock shortage on last season’s drought and low returns for meat for the east two years, which had encouraged farmers into other forms of production. He said chicken prices had not increased in line with the rise in red meat values. Pork had also remained static, but was starting to increase in price as a result of pre-Christmas demand.