Processors pay extra due to lamb scarcity

Whether lamb suppliers are taking reduced prices this week, or not, at the factories, appears to be an issue of how hard they are willing to negotiate with the processor before selling.

Prices quoted by the processors have been reduced about 10 cents/kg, with the factory bosses saying returns from export markets have weakened, but reports from around the country suggest that up to 25 cents/kg more than the quoted price is being paid to secure sufficient supplies.

On the face of it, producers are being offered a base of 440 cents/kg at most of the factories with the usual bonus payments for quality worth up to 10 cents/kg extra.