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The Price of Lamb v’s the Value of a Future

Greetings Readers

The perverse machinations of the export meat market have become evident in the prices being paid for late season export lambs at Southern North Island sales.

South Island producers must be a little perplexed at the willingness of the South Island export companies to chase lamb supply at almost any price when for the majority of their season they are unwilling to reward their producers with a price that is comparable with North Island prices.

It seems that the meat industry is off on another round of destructive behaviour as the repositioning and influence game is played out between the companies. The notable large North Island cripple must be slightly bemused at the possibility of the other companies dissipating their current advantages in a market slug out.

Perhaps from a shareholders point of view the closeness of the seasons end may save an unnecessarily large leak in each of the competing meat company’s profitability. But are we again seeing the positioning of company’s to acquire market power even if in the short run it destabilises the market for farmers.

If the meat industry end game is to be a processing monopoly, stock producers must take notice of the likely owners and there interest in serving the industry or serving their own ends.

Good farming

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