Friday, 24 September 2010

Not sure how this will work.

According the NZ Herald, farmers have lost $50 million through the deaths of some 500,000 lambs thanks to the recent storms.  This is likely to cause the price of lamb to rise. Personally I can't see how this is going to work.

Lamb is already outrageously priced.  A full leg costs at least $35.00 locally, usually more.  Shank ends are around $15-20.00.   Even a couple of shanks cost $10.00 or so.

Camille and I can be considered well off compared to the majority of New Zealanders and we very rarely buy lamb because of how much it is these days.  We only buy lamb when it is reduced in price: Lamb racks when they are reduced to $10 - $12 each; legs when Silverfern farms has a special on them; rumps when I can find them frozen on special; and so on.

I can't see how raising the price further to offset $50 million in lamb deaths is going to do anything other than cause fewer people to buy it.   Does this mean they are going to have to raise the price further to cover those lost sales?

3 comments:

Pee Gee said...

well said

Claire said...

I agree...
Here in the Greek Islands I can buy NZ frozen lamb legs for approx 35 NZ Dollars,forequarter 20,rack 13....(cheaper than the local weedy specimans)
All my sympathy to you all

Thrash Cardiom said...

Of course the reason why we buy it at $35.00+ for a leg is because that is the price you buy it at in the Greek Islands.

We pay the international price because if we don't, we don't get lamb at all as it would all get shipped overseas to get the bigger sale.