2 Mar 2010

Quiet season for agricultural haulage firms

9:30 am on 2 March 2010

The Road Transport Forum says a drop in the number of livestock being sent to the works has meant the cartage season has been unusually quiet.

Good grass cover over much of the country has allowed farmers to hold off sending their sheep and cattle to the works, so they can put on more weight and increase their returns.

Meat companies have struggled to fill their supply orders for the Easter lamb trade to European customers, and have been forced to review prices.

The Meatworkers union says over the past four weeks most processing plants, particularly those in the lower half of the North and South Islands, have been operating at reduced hours because of a drop in demand.

It says some have only been operating for two or three days a week.

Road Transport Forum chief executive Tony Friedlander, says while the slow season is creating some short-term cash flow problems, the industry is picking up a little.