Cosy genetics trade sparks rivalry fears

New Zealand sheep genetics are helping fuel growing competition from Australia for our $2 billion export prime lamb markets.

The farmer-owned producer board, Meat and Wool New Zealand, and several private sheep genetics companies are collaborating with Australia in research projects and supplying them with our sheep genetics.

Meat companies are worried about competition from Australia's prime lamb industry, which grew 3.4 per cent in 2005-06 to 388,000 tonnes and is picked to grow another 4.4 per cent in the coming year.

"They're prepared, to date, to be very aggressive in the marketplace," said PPCS chief operating officer Keith Cooper.

Cooper said Australia was particularly aggressive in the United States, a market viewed as having major potential, and where the presence of Australian lamb forced the price for highly prized French racks to tumble last season.

Meat and Wool New Zealand chief executive Mark Jeffries said the two countries were discussing sharing information on sheep genomics along with existing research into meat processing, beef genomics and wool harvesting.

While Australian prime lamb loomed as a threat, Jeffries said New Zealand stood to gain through collaboration such as growing US sheep meat consumption.

- OTAGO DAILY TIMES