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This has been brought up here before. I haven't time to go into it in detail, but it sounds self-serving to me. What may be true about it is that NZ lamb is an extensive land-use product. But there is not that much intensive about European lamb production either.

And what is not stated is that NZ lamb, from wool-bearing breeds (Merinos-type) is lower quality than European lamb. Nor that the ship voyage = deep freezing. Generally, this means NZ lamb is used in mass food supply - works canteens, institutional meals, food industry ready-made meals. Few consumers will buy a frozen NZ leg of lamb rather than a fresh European one, despite the price difference.

 

by afew (afew(a in a circle)eurotrib_dot_com) on Mon Jun 4th, 2007 at 06:25:32 AM EST
[ Parent ]
So UK lamb and NZ lamb is not substitutes?

Can the last politician to go out the revolving door please turn the lights off?
by Migeru (migeru at eurotrib dot com) on Mon Jun 4th, 2007 at 06:34:11 AM EST
[ Parent ]
No. Apples and oranges.

NZ has had a quasi-monopoly on low-quality lamb and mutton in the EU since this was negotiated as part of the UK entry package in 1973. The British Isles (that includes the Irish Republic) were pretty much set up as the main higher-quality producers to the EEC (to the immediate detriment of producers elsewhere, France for example). That situation has since settled down somewhat, since there are in fact national and regional tastes to be considered, (comparative advantage doesn't appear to take that into account), such as British lamb being fatter than French taste enjoys, or there being a market for very young lamb in Spain. So national and regional production has gradually built up again.

by afew (afew(a in a circle)eurotrib_dot_com) on Mon Jun 4th, 2007 at 07:20:55 AM EST
[ Parent ]
NZ has had a quasi-monopoly on low-quality lamb and mutton in the EU since this was negotiated as part of the UK entry package in 1973.

!!!

there are in fact national and regional tastes to be considered, (comparative advantage doesn't appear to take that into account)

Yes, comparative advantage only works for perfectly substitutable products.

What you're describing is monopolictic competicion where producers specialise in slightly different products and either take advantage of consumer preferences or hope for them to develop.

Can the last politician to go out the revolving door please turn the lights off?

by Migeru (migeru at eurotrib dot com) on Mon Jun 4th, 2007 at 07:56:20 AM EST
[ Parent ]
Interesting stuff, afew.

McMutton, anyone?


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sapere aude

by Number 6 on Mon Jun 4th, 2007 at 08:43:36 AM EST
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