French buy less as meat price rises

Marts: Consumer resistance in France to higher prices for meat — most varieties — has been confirmed in a survey showing lower volumes are being purchased by housewives as the price of the meat increases.

The survey has measured the market in 2006 when, according to Les Marches, housewives in France reduced the volume of meat purchased but the evidence is that the housewives resisted increasing their spend on meat as prices increased.

The actual value of purchases was maintained — but not increased — and as the price of meat increased the housewives reduced the volume purchased to match what appeared to have been a set maximum spend.

Lamb, beef, and veal were all effected in volume sales with lower volumes being sold as prices increased with the only exception pig meat which maintained volume sales. Veal sales suffered the largest decline losing 6% in volume. Beef sales dropped by 3% and sales of lamb declined by 2%.

Prices for all meats increased during the year. The largest rise was in the cost of lamb and veal with beef prices increasing by a more modest amount. Coincidentally, pig meat prices showed a minor fall and volume held at the level of the previous year.

The findings are a clear indicator of the sensitivity of price increases on the spending power of housewives on meat — sufficient to cause concern for producers who are under pressure because of lower returns.

On the market in France this week, lower supplies of lamb from French producers and Spain led to an increase in prices for both Irish and British lamb. The price of Irish lamb on the market has increased to 400-420 cents/kg (143p-150p/lb).

Irish factories have increased prices — up to 8 cents/kg (3p/lb) since last week. Yesterday, Kildare Chilling offered a base price of 383 cents/kg (137p/lb) and 381 cents/kg was quoted by Kepak, Hacketstown and Dawn, Ballyhaunis.