Lamb returns and market analysed
The world wants chilled lamb meat but the challenge was to get it to the right markets at the right time, Alliance Group livestock manager Murray Behrent told farmers at a field day last week. While frozen lamb still accounted for 60 to 70 per cent of exports, the aim was to convert that to chilled to maximise returns, he said. “Lamb is a premium product and we want to sell to the millionaires of the world.”
Shelf life had been extended from nine weeks to 11, which meant the meat was on retail shelves for longer, offering more sale opportunities reports The Southland Times. Speaking at M&WNZ’s new Meat the Future field day last week, Mr Behrent said the co-operative knew farmers wanted $100 for a lamb now and were unhappy with returns lower than last year. But if the NZ dollar was the same as last year, farmers would be getting between $112 and $115, because of record prices being achieved in British retail markets.
When questions about a price that farmers might expect in five years, Mr Behrent said the target had to be $120. But he warned farmers not to run their business expecting that. Returns to farmers could be increased if the prices obtained for co-products such as wool and tallow could be lifted. Five years ago, they brought an extra 25 per cent above the meat price. It was about 7 per cent at present. Lifting co-product prices could help put another $10 in farmers’ pockets, he said. He praised farmers for doing a good job adapting to meet the changing market demands. In the 1983-84 season, the average carcass weight was 13.3kg – last season it was 17.7kg, Mr Behrent said.
