Fake lamb in 'NZ' brand

Rural News

Chinese authorities investigating fake NZ lamb products sold in major chain hot pot restaurants

7th May 13, 10:49am by David Chaston

New Zealand's brand may be being drawn into another food scare in China, this time with lamb.

The Chinese media is reporting that fast food chain "Little Sheep" has been caught possibly adulterating lamb products in the locally well-known hot pot restaurants.

Little Sheep is a franchised operation in China and is now part of the international Yum! Brands stable who also operate the KFC and Pizza Hut brands. Yum! has apparently suspended some franchisees over the issue.

The accusations are that products called "New Zealand lamb meat loaf" may not actually have any New Zealand lamb in it, or could even be vegetarian.

Franchisees are apparently under severe cost pressure because of the high price of domestic or imported lamb and mutton, leading some to take the risk of adulteration and substitution.

Not only have beef, pork or duck been found as substitutes, but much more worryingly also "diseased poultry meat, mice, fox and other non-human meat".

Lamb currently sells for 60 yuan a kg in China but adulterated lamb sells for between 10 and 30 yuan a kg.

Authorities are struggling to contain the fraud because it is both widespread and visually difficult to identify, and are considering using DNA identification in their efforts to combat it.

Meanwhile Yum Brands said its roughly 450 Little Sheep hot pot restaurants in China are not involved in a fake mutton scandal a Yum! spokeman told Reuters.

“There is no evidence, none whatsoever, of any adulterated product anywhere in our system,” spokesman Jonathan Blum said.

The comments from Yum came shortly after Shanghai authorities said they were testing mislabelled mutton from a wholesaler a government website said supplied Little Sheep and other restaurants, Reuters reported.

(Updated with the Yum! denial it is involved.)

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21 Comments

by Stephen Hulme | 7th May 13, 11:17am 1367882246

Franchisees are apparently under severe cost pressure because of the high price of domestic or imported lamb and mutton, leading some to take the risk of adulteration and substitution.

Will our export figures confirm this assertion? - or did we dump to accommodate the drought related kill?

by Belle | 7th May 13, 11:21am 1367882510

I believe we dumped. So if they adulterate and substitute at dumping prices what will they do when its at a premium?

by David Chaston | 7th May 13, 11:59am 1367884776

I've seen no evidence at all that NZ lamb or mutton was sold at lower $/kg to China. That claim does not show in the export trade stats. We are going up the $/kg curve, not down. Last data is to March 2013. Interested if you actually have evidence that the export stats are wrong.

by Belle | 7th May 13, 12:11pm 1367885515

My kill sheets say I got $172 for lamb dec 2011, $105 dec 2012 $80 march 2013. Yes I am surmising here David. No evidence other than my kill sheets and what I have in the bank. Not a lot of lamb left to kill, apparently China took heaps. They must have taken it for less, a lot less. 2012 rumours were rife that coolstores were overloaded with lamb. No where to go.

by Andrewj | 7th May 13, 12:15pm 1367885729

I would have thought that china was where all the inventory carried over from last year went. Many of my friend have been forced to kill over %30 of their capital stocck at rock bottom prices.

Are you saying the works have made a killing getting top dollar in China, and paying peanuts to their suppliers?

by Stephen Hulme | 7th May 13, 1:32pm 1367890360

No! - surely not? - weren't pledges made to work together on this one?

by Colin Riden | 9th May 13, 3:13pm 1368069214

Export Stats to China, UK and US of frozen sheep meat, cut, bone in, lamb and exluding lamb:

Lamb:

China March 2012: 6,000 tonnes at $4.42

China March 2013: 12,000 tonnes at $4.73

UK March 2012: 2,300 tonnes at $7.45

UK march 2013: 4,100 tonnes at $5.83

US March 2012: 1,000 tonnes at $20.58

US March 2013: 1,100 tonnes at $11.08

Excluding lamb:

China March 2012: 1,700 tonnes at $3.45

China March 2013: 6,000 tonnes at $4.00

In March 2013 China took 10,300 tonnes more frozen sheep meat than in March 2012. And while they paid a little more for it, I suspect the average quality may have been higher (some of what may normally have gone to higher paying UK and US markets).

February 2013 sales of sheep meat to China weren't quite as high as March, but close. January sales volumes of frozen sheep meat to China appear normal.

Averages across the 3 markets:

March 2012: Lamb $6.95, Excluding Lamb $3.56, Combined $6.35

March 2013: Lamb $5.40, Excluding Lamb $3.99, Combined $5.02

by Andrewj | 9th May 13, 3:33pm 1368070404

Hi Colin and a big thankyou.

So the more we send to China the less we are going to get for our Lamb. Looks likeChina has soaked up the surplus but at a low price. I don't know what the lamb shedule is now but It was over $4.00 and I would think it still is.

Being dependent on China like this scares the hell out of me, I ask you where would we be if China hadn't taken all this product?

by Andrewj | 9th May 13, 3:45pm 1368071107

Here are some figures

Lamb shedule

http://www.cabernet.co.nz/Cabernet-Meat-Schedule.php

Here is beef and lamb

http://beeflambnz.com/price-trend-graphs/

I thnink that we took a hiding this year, but moved alot of product.

Next year will be a big one for restructuring.

from Stuff

Sheep farmers are set to produce slightly more lambs this season but earn a lot less for them.

With lamb prices having slumped from a high of more than $8 per kilogram at the start of last season to barely $6/kg, farmers have gone into lambing hoping the schedule won't fall further and wipe out all profit

by Stephen Hulme | 9th May 13, 3:54pm 1368071663

In terms of profitability it is obvious currency value is not an issue, but the destination of the buyer certainly is - hence the ranting about the high value of the NZD/USD is no more than a stick to beat back employee calls for decent living wages.

by David Chaston | 9th May 13, 4:18pm 1368073114

Thank you.

by Belle | 9th May 13, 5:10pm 1368076250

U cant compare figures not knowing wot cuts they r taking.

by Belle | 9th May 13, 5:15pm 1368076522

Not al cuts of meat r equal.

by Belle | 9th May 13, 5:21pm 1368076894

Not al cuts of meat r equal.

by Belle | 9th May 13, 5:24pm 1368077070

Oops x2. I use 2 work 4 lamb coy. 1 yr a buyer wud take shanks nxt yr racks. Big dif in price.

by Andrewj | 10th May 13, 4:06am 1368115618

Belle, looking around here Id say we are gitting the better cuts in the States. However i can buy a leg of lamb, or Chops at $10 US a kg. I can find NZ lamb steaks at Trader joes, it is a leg of lamb that has been cut into steaks, bone in the middle. $17 a steak, enough for one person. French rack from very small lambs similar cost.

So yes the USA is the best paying market but only for the best cuts, China is taking whole carcass.

What worries me is that the UK took 2300 tonnes in 2012 @ $7.45 but the cost to NZ of adding 1800 tonnes was a large reduction in price at a time when the pound was weak.

Then China goes from 6000 tonnes to 18000 of sheep meats all at low prices. How can we be getting $6.00 a kg on the fam when china is paying so little. Some processors in NZ have taken a major hiding.

Next year there will be stuff all lamb, so China won't be such an important dumping ground.

I just dont feel confident enough to buy a sheep farm, when we are so depedent on China and the UK market looks so weak.

The cost structure must be hurting the meat processors as much as its hurting farmers.

There will be restructuring but whats the bet it wont be controled by farmers, I think the banks will be leading the charge, you just wont see the strings.

Thank God for our beef quota o the States at least we can keep selling Bull Beef.

by xingmowang | 7th May 13, 11:41am 1367883660

It is not NZ that adulterate lamb meat. It was some CHN meat manufactures who mixed duck meat, fox meat and sometime rats meat with sheep fat, then, put a 'Made in NZ' label on.

NZ's dairy sector has already capitalized hugely on the 2008 melamine scandal. Here is an opportunity for NZ's sheep sector to occupy CHN's sheep meat market.

by Belle | 7th May 13, 11:47am 1367884054

Yup Xing we get that. Never kinda crossed my mind that Silver Fern Farms or Alliance or others would be biffing in a bit of rat.

by Belle | 7th May 13, 11:51am 1367884278

Although.......... I do have an epidemic of rats at the mo. I wonder if I could muster them and deliver to the local works what sort of kill out percent they would do, whether it would be worth the effort. I do hear there isnt much lamb left to kill this season and they are getting a bit desperate. Perhaps I will ph my buyer and check the situation out.

by andyh | 7th May 13, 1:05pm 1367888735

You could market it as ramb..........

by Christov | 7th May 13, 1:21pm 1367889691

Not only have beef, pork or duck been found as substitutes, but much more worryingly also "diseased poultry meat, mice, fox and other non-human meat".

If that is the case David you'd think they'd source some "human meat" from the inexhaustable supply walking past the front door.........

I'll ave a breast n a thigh in my jumbo takeout.