Chinese demand boosts global lamb prices

Growing Chinese demand for higher vaiue cuts of lamb is likely to have a significant impact on global supplies in the coming years.

 But closer working relationships between New Zealand and UK producers should help address the extreme volatility that has affected markets over the past year.

Representatives from the UK recently visited New Zealand to discuss the negative impact price volatility was having on producers. They agreed that working together would help them anticipate sharp price changes, with increased market access essential to spread the risk.

“New Zealand now has open access to the China market, which is creating a lot of opportunities for them, ” said EBLEX director Nick Allen. “There is a huge demand for sheep meat there, and it is not just the cheaper cuts as may traditionally have been the case.

“This increased demand will influence the global supply of lamb as New Zealand looks to take advantage of that market – something we cannot yet do,” he added. “It means we could potentially avoid a flood of lamb cuts into the UK from New Zealand, as we experienced over a short period late last year.”

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