Lamb Diversification Charge Explained

Press, Volume CVI, Issue 31198, 24 October 1966, Page 8

Lamb Diversification Charge Explained

The diversification scheme for lamb, the new form of the export lamb schedule, and the nature of the schedules for export meat are dealt with in a statement issued by the meat committee of the meat and wool section of North Canterbury Federated Farmers.

“It must be pointed out that the 10 per cent diversification as agreed upon by the market development committee is a scheme to direct our increased production to markets outside the United Kingdom,” says the statement. “The scheme as outlined is for all exporters of meat, including own account farmer exporters, to diversify 10 per cent of their total exportable kill.

“This does not necessarily mean that farmers will be paying an additional 3d diversification charge on 10 per cent of their lambs. As some of the exporters are at this moment diversifying a considerable portion of their kill, it would appear that the penalty clause will affect only

a very small portion of the lambs killed. “The farmer who kills on his own account will, however, have to pay the diversionary charge unless he can make alternative arrangements for the disposal of the 10 per cent.” The Schedule On the question of schedules the committee said: “The schedule is not set or announced by the Meat Board. The Meat Board is, in fact, not involved in any way in the setting of a schedule. “The schedule is a price which the -meat operators believe that they can profitably pay for animals for slaughter to be sold in about 10 to 15 weeks’ time. It is their assessment of a future market for meat, wool, pelts and the various offals, less processing, shipping and selling costs. It is, in effect, a group offer for the various grades of lamb, etc., for the ensuing week. “The farmer may accept this offer, sell to the buyer on the farm, or elect to ship on his own account or through a group or co-operative.” The statement also refers to the new form of the schedule in which a separate payment is made for wool. “This year the schedule for

lamb takes a new form because of the acceptance by operators of a request by Federated Farmers for ths wool to be paid for separately “To make a comparison with last season’s schedule, the price for the average wool pull for the time of the year must be added to the current offer Some representative examples were given in a statement by the freezing companies, and published in the farm page of ‘The Press.’ ”