Price cuts on NZ lamb rile UK farmers
Questions are being asked on both sides of the planet about the low retail price of New Zealand lamb in United Kingdom supermarkets.
UK sheep farmers are criticising the Morrisons supermarket chain for selling NZ lamb at cheaper prices than local product, and some NZ farmers are questioning why their lamb is being sold cheaply in the UK or promoted as either NZ or UK product.
Morrisons is trialling NZ lamb in 39 stores and a spokesperson said it is cheaper than the British product.
“The blunt commercial reality is that NZ lamb is cheaper to source, and therefore cheaper to sell, than British lamb,” a spokesperson said.
“We will remain 100% British lamb on all our butchers’ counters, and the NZ lamb will of course be clearly labelled so customers in these trial stores will see the difference and can make a choice.”
See also:
Beef and Lamb NZ rejects Britain’s NFU ‘lower standards’ claim
Backlash as Morrisons trials sale of New Zealand lamb
Sheep farmers ‘dismayed’ as Morrisons drops British only pledge
In NZ, the Meat Industry Association said NZ lamb is priced more cheaply than British due to UK retailers treating it as a loss leader.
“Ultimately, the retailers set the price of in-store lamb in the UK and they base their decisions on a range of factors including seasonality and demand,” said MIA chief executive Sirma Karapeeva.
“Many retailers promote lamb as a loss leader to bring shoppers into stores to buy other products,” she said.
Neal Wallace | Farmers Weekly NZ
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