Last season was the best in a generation for farmers, but there is reasonable confidence that bust won’t follow the boom.
Prices aren’t likely to stay at this year’s highs but Alliance Group expects protein markets to stay strong:
Speaking in Oamaru during the company’s annual series of shareholder/supplier meetings, chief executive Grant Cuff said it was expected 2012 prices to shareholders would remain high for lamb, sheep, cattle and deer.
Indicative pricing was that lamb would remain at $100 plus and sheep at $85 plus, with cattle prices down slightly.
Sheep and beef numbers were stable worldwide, consumption of meat was increasing and there were growing sales in the East.
Uncertainty in Britain, Europe and the USA is concerning but our two most important trading partners, Australia and China, are more stronger.
A free trade deal with India would provide more opportunities.
One of the benefits of new markets in Asia is that they are interested in the cheaper cuts which aren’t popular in our traditional markets.