Lamb. Australia is now sending a growing volume of lamb legs and racks and Icelandic, Irish and Welsh lamb all have a toehold in the market in the aftermath of Brexit. SFF expects retail demand in the US to remain strong despite lamb being a niche product. It also expected to see a continuation of the recovery seen in the food service sector but challenges will remain from Covid-19. Middle East lamb markets have found it difficult to compete with prices paid by China, especially as NZ lamb numbers have fallen. But Kingston says Alliance is still consolidating and building existing markets and SFF reports Middle Eastern demand for frozen lamb is positive. All Asian markets have remained solid through 2021, with consumer demand growing, particularly in Hong Kong, Singapore and Malaysia, as their populations become more westernised. And with much of the mutton which previously went to the Pacific Islands now destined for China, there’s only a limited lamb trade, mainly to French Polynesia, Fiji and New Caledonia.
Strong demand from China THE CHINESE MARKET FOR New Zealand lamb continues to price competing countries out of contention, even with shipping disruption and the increasing strength of the NZ dollar. “Throughout the pandemic there’s been strong demand for protein generally,” says Susan Kilsby, ANZ agriculture economist. Chinese prices had held up from last year when at one stage there had been the lowest difference ever in prices received for lamb and mutton in that country. From last October to July $1.2 billion of lamb was exported to China at an average price of $8579/tonne along with $542.48 million of mutton at an average price of $7454/t. “There’s a preference for slightly more flavoured meat which is cooked slowly so it can come from a bigger animal,” she says. This meant more meat being exported as whole or half carcases. There is also
slow growth in chilled cuts of lamb being served in restaurants targeting Westerners. Sirma Karapeeva describes the Chinese market as a dragon. “It’s super competitive and hungry for product.” Alliance’s sales general manager Shane Kingston says the Chinese market for lamb is “absolutely continuing strongly”. Consistent demand is seen in the run up to autumn festivals and then the Chinese New Year with the high NZ dollar having little effect on prices paid. Chinese demand has sucked mutton out of the European market where it has been historically used in institutions. More recently it’s competed strongly for lamb flaps which can be sold attached to carcases. They were previously shipped to the Pacific Islands, and Middle East market demand has dropped steadily as the prices Chinese buyers are prepared to pay increased.
A kilo liveweight gain makes a big difference in the long run. It’s a single dose, a one-shot wonder. ANDY MCLACHLAN TARARUA DISTRICT
ASK YOUR VET FOR THE B12 SHOT THAT LASTS* Registered pursuant to the ACVM Act 1997, Nos. A9984 and A9402. Copyright © 2021 Virbac New Zealand Limited. All rights reserved. *Based on label claims and dosage, and supporting published literature.
Country-Wide
October 2021
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