New Zealand will have problems supplying more lamb to the United States in the short term, even though it will soon have easier access to the market.
Tariffs and quota on New Zealand lamb arriving in the US will be lifted on November 15, as a result of New Zealand and Australia's successful appeal to the World Trade Organisation, which ruled that US tariffs were illegal.
Mick Calder, company secretary of NZ Lamb Co (North America), said that while the company was always pushing to increase sales, the difficulty was having enough meat to supply the market.
"Given the supply situation and general consensus that we should, if at all possible, fill the European quota, the US market is down the priority list. You don't grow the market unless you can be assured of supply."
New Zealand exports about 15,000 tonnes of lamb to the US, worth about $180 million.
The lifting of the tariff would normally be a good opportunity to expand the market, because average annual consumption in the US is low at around half a kilogram per person.
But Meat New Zealand chief executive Neil Taylor has predicted international sheepmeat production will drop by over 150,000 tonnes - in terms of carcass weight - over the next five years among the major sheepmeat trading countries.
This will result in lower export volumes: New Zealand's own sheepmeat production will drop by 48,000 tonnes as another 9 per cent of farms are forecast to drop out of sheep farming.
- NZPA
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