Lamb pricing itself off the local market

While everyone in the red meat sector will be applauding the dramatic improvement of sheep and beef prices, the sustainability of these levels could be in the hands of the consumer. Lamb, once a staple diet of most New Zealanders has at these prices become unaffordable to many, and alternative proteins like chicken are now being consumed more, because they are cheaper in price.

Will the world wide demand for proteins cause many of our traditional farm products be too expensive for local consumers, and become the "crayfish" of pastoral products, that most only eat on special occasions, or is exported to less price conscious consumers?

The significant price rises were needed to get pastoral sheep and beef farmers back into profit, and investing back into their land, fertiliser, new grass species,  genetics and new technologies, to keep them at the forefront of the world market. But at present price levels, the NZ consumer is not happy about it.

What are your views on how farming could be kept profitable, with food prices that are affordable for the local consumer.

Gone are the days when families dined on a leg of lamb; the Kiwi staple has priced itself off the table reports The Ashburton Guardian. With lambs fetching up to $200 a head at the butchers' market, that puts a high price on the two legs, two shoulders and two sides of chops they become on the butchers' hook.And that means butchers and families have had to change a few habits, says butcher Paddy Kennedy. "There's nothing in it for us now with a lamb, we cover our overheads and that's about it.

Less than 12 months ago Mr Kennedy said a leg of lamb sold for between $20 and $24; today he has half legs at $30 plus. But unlike 12 months ago there are few legs of lamb in the cabinet. Today you're more likely to find added value products that make a little meat go a long way. With lamb chops retailing around $24 a kilo and an average of 10 chops per kilo, buying enough to feed a family, particularly with teenagers, could see the meat side of the meal costing more than $30, he said.

"People are being very wary, very selective when they're shopping now. There's really only pork that doesn't fluctuate in price that much, it's the cheapest meat you can eat."Added value is where the market is at now."New World butchery manager, Mark Smith, keeps a day-by-day watch on meat prices, but said the fluctuations of the market are not as noticeable when a supermarket was part of a large buying network. "We've been lucky because Foodstuffs has contract prices, but it will flow on eventually.

A former Manawatu sheep and cattle farmer says the chicken industry, which he is part of now, has been caught on the hop with lamb and beef prices going up reports The Manawatu Standard. "It means consumers look for alternatives – chicken. They still eat beef and lamb, but not as much."Mr Bryant now lives in Sydney, heading ProTen, an unlisted company which has 25 per cent of the New South Wales chicken meat business, and 6 per cent of Australia's. It is a contract broiler chicken grower which puts through 28 million birds a year at 124 sheds.ProTen had a revenue of about $16 million and profit each year of about $9m, Mr Bryant said. They paid the bank interest and debt, and shareholders got a dividend each month.

Mr Bryant said he intended to expand, with planning under way for 24 new broiler chicken sheds at Griffiths in New South Wales, inland about halfway between Sydney and Melbourne. "We can build sheds easily, but the biggest constraint is getting qualified people to run the businesses. There is a serious shortage."While it was hard for family investors in the chicken business to get consent and then start a business, Mr Bryant said the corporate farming method meant it was easier for them.

"We are looking at expanding further. We want equity for another 200 sheds which we plan to build. We can double our size, but triple our profit, because we already have the corporate ProTen business in place."Mr Bryant said he doubted the growth for demand for chicken would ease because the world was chasing animal protein and he was sure lamb and beef prices were likely to remain high.