Australia: Lamb price to remain soft
Lamb consumption in China hasn’t taken off post-Covid, resulting in high inventories in coldstores.
North Island prices last month dipped to $7.20/kg. In the same week a year ago they were $9.10/kg. The South Island lamb price was forecast at $7.30/kg compared to $9.20/kg this time last year.
Meat Industry Association (MIA) chief executive Sirma Karapeeva says the drop in lamb schedules is very much a China story.
“There is a lot of protein sitting in Chinese cold stores,” Karapeeva told Rural News. “The inventory is very high, and they are not buying. I suspect it will take a little while to work through the inventory levels before we see an uplift in demand and price.”
ANZ agriculture economist Susan Kilsby notes that a surge in demand for lamb products that followed China’s post lock-down reopening was short-lived.
Kilsby says Chinese importers were initially positive, pushing up the price of lower-priced lamb cuts and mutton, but they are finding it challenging to move goods on. “Consumption has not lifted as quickly as expected, because consumers remain financially constrained and don’t yet have the confidence to spend as much as they once did on relatively expensive products.”
Sudesh Kissun | Rural News NZ
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