By PHILIPPA STEVENSON agricultural editor
Farmers are holding stock in anticipation of a windfall from Britain's foot-and-mouth outbreak but meat processors warn they could be in for a shock.
The chief executive of meat processor Richmond, John Loughlin, said experts predicted the outbreak already affecting 96 farms would peak at 200 cases, well down on the 2000 cases of Britain's worst epidemic in 1967.
Once Britain's scare ended there would be a backlog of sheep and beef, particularly from Ireland, for slaughter.
He said the company's customers believed the disruption would be brief and had not placed forward orders at the higher prices now being paid for all sheepmeat cuts.
Prices for some cuts are up by more than 30 per cent.
But some farmers here seemed to believe the higher returns would last for some time, Mr Loughlin said.
The kill had dropped away, and prices for store sheep, or those kept for fattening, had risen.
"It worries me that if too many people get carried away with the hype that they won't win out of it, and nor will anyone else.
"They won't make a fortune, and we will wind up under-supplying at a time when Britain needs the product and is prepared to pay a premium for it, and over-supplying when they don't need it," he said.
"Farmers will be worse off if they bunch the kill up after the foot-and-mouth scare than if they supplied steadily all through it."
Richmond operations manager Rowan Ogg said the ban on British exports had created few opportunities in other markets.
Richmond already supplied Middle Eastern countries with beef after British beef was banned due to the mad cow disease scare.
Meanwhile, eight vets from throughout New Zealand flew to Britain yesterday to help fight the epidemic.
They join five other vets from this country already in Britain.
Feature: Foot-and-Mouth Disease epidemic
Cash cows carry a risk
AdvertisementAdvertise with NZME.