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Sausages feel squeeze of supply and demand

Jun 21st, 2010 | By | Category: Front Page Layout, Latest News, News

The humble sausage is the big mover in Consumer Price Index rises over the past year.

sausages graphSausages (11.9%), fresh milk (4.5%) and soft drinks (8.2%) showed the biggest individual jumps in the recent Consumer Price Index (CPI).

Figures released by Statistics New Zealand showed the CPI rose 0.4 % in the year to April 2010, following increases of 0.3 % and 0.7 % for the years to March 2010 and February 2010, respectively.

Sub-groups that make up the food index include grocery food (up 2.3%), restaurant meals and ready-to-eat food (up 1.9%), alcochol etc,  and fruit and vegetables (down 5.0 %).

The final  sub-group, meat, poultry, and fish, decreased 2.2 % but under that heading sausages were the odd ones out among meat products with their 11.9% jump.

Terry McKee from Strathmore Butchery puts the rise down to the increased cost of sausage skins.

“The price of sausage skins had gone up by 30% so it was all about supply and demand really.”

Two types of sausage skin used by Strathmore butchery come from sheep and pigs.

“For 50kg of skin its $100. For a sheep skin it’s smaller and costs $2 a kilo, pig is bigger and costs $1.”

Contributing facts in the rise of sausage skin prices was the decrease of lambs and the devastating earthquake in China two years ago.

“The decrease of lambs meant a decrease in skins which means the farmers increase the prices.”

He said the earthquake in China killed a lot of pigs and created a lack of supply.

“A mother pig has at least 30 babies in its lifetime. When the earthquake hit China a lot of the mother pigs were killed.”

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is A multimedia journalist for Newswire. Based in Wellington, New Zealand. Lover of social media, coffee and red wine.
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