OX & PALM PRICE REMAINS DESPITE SOARING PRICES IN MEAT
The global market for beef is heating up, with huge demand from the US for imported beef. The US normally processes 650,000 head of cattle per week; however, due to the drought in America, they are under-supplied by approximately 160,000 head per week. The shortfall of beef in the US market is being absorbed by imported beef from markets such as Australia and Brazil, causing prices to increase.
“The quota for Australian Beef into Indonesia and the US market being short is putting pressure on the buying side for Hugo Canning,” said Jeremy Fry, GM of Hugo Canning Company. “We are expecting a 13% increase in our material costs for Ox & Palm in Q2.”
However, through consultation with the Marape-Rosso government (Key Ministries under Hon. John Boito and Hon. Richard Maru) and the leadership team at the Department of Agriculture and Livestock and NAQIA, market access has been granted to manufacturers for supply of beef from Brazil.
‘This access comes with strict conditions but demonstrates a commitment from all corners of the PNG Government to address affordability concerns for consumer goods & shows their commitment to supporting manufacturing & jobs in PNG. This is a win for consumers and the benefit realization will flow through in the second half of the year’ according to Hugo Canning Co.
Hugo Canning Company Ltd is a subsidiary of Taylor-Pacific who has acquired a majority stake in Sepik Fresh Poultry. The company plans to expand its agricultural operations to include cattle farming and stockfeed production in both Sepik and Central Province.
