EXPORT MEAT

Dominion, Volume 36, Issue 32, 2 November 1942, Page 4

EXPORT MEAT

Trading Arrangements For New Season OPENING SCHEDULES UNCHANGED Purchase Guaranteed Arrangements for the purchase during the 1942-43 season of meat produced for export were announced at the weekend by the Minister of Marketing, Mr. Barclay. He said that the Government recognized the necessity for stability in the primary industries, and for that reason had agreed to place the resources of the country behind the meat industry in the national interest.

Mr. Barclay said that agreement had now been reached between the Government, the New Zealand Meat Producers’ Board, > and the freezing companies and Meat Operators’ Association. Last year, when the shipping outlook was not bright, it was feared that the stability of the meat industry would become endangered. In spite of the heavy potential liability involved, the Government decided to support meat producers, and undertook to purchase all the exportable surplus after three months in store, irrespective of whether it was finally shipped or not. The result was a normal and balanced production season. The Government had agreed to renew .this guarantee to producers this season in respect of their normal output of meat during the year. F. 0.8. Buying Prices. “The Marketing Department has established f.o.b. buying prices for all main classes of meat, the price level being such that meat operators are aible to offer farmers the same opening schedule for live stock as operated at the beginning of last year,” said the Minister. ‘.’This has necessitated an increase -in the Marketing Department’s prices to compensate follower pelt values. The extent of these increases is .175 d. a lb. for all grades of lamb, and .125 d. a lb. for all grades of wether mutton. The income of the meat pool will therefore be reduced proportionately. “Details of the agreed opening schedules will be issued in a few days, but the central feature of the arrangement is that the opening schedules will in the main be the same as for last season. For example, prime Down cross lambs, 231 b. to 361 b. weight range, will open at 8 3-Sd.-a lb'., and prices for other grades will be in conformity. The opening price for North Island prime wethers, 481 b. and under, will be 51d., while South Island wethers will retain, their relative values. Ewe prices for 641 b. and under will open at 2 5-Bcl. a lb. Ox beef of G.A.Q. quality, under 8401 b., will open at 34/- per hundred, G.A.Q. heifer at 33/-, and G.A.Q. cow at 27/6. The schedule for pork and bacon will remain stationary at last, season s levels.

“It is not yet possible to announce a flrm price for bull beef and bobby veal as disposal of these classes of meat is still under discussion. _ Prices for boner cow beef will continue at their present levels, but will be subject to review toward the end of the present calendar year. The agreed opening schedules <ire based on the average values for sliped wool realized last season. Any addition to last season’s value of slipe wool will be reflected 'to the producer by proportionally increasing the buying schedule. Slaughter of Stock.

"The Fat ‘Stock Disposal Order, 1941, which restricted the sale ond slaughter of stock to the same purchaser or killing plant as employed by the farmer the previous season, will be re-enacted, and will 'become operative in regard io all transactions during the present season.

"The movement in buying prices subsequent to the O'pening schedules will depend as in the past on skin values, and the movement of prices in any direction will be supervised by the Primary Industries Controller in consultation'with representatives of the Meat Board and meat operators. Producers will appreciate that the arrangements which I have outlined ensure stability in their farming economy during the fortl)coniing«production year. Farmers niuy therefore carry on their normal production policy, while meat companies are assured of their normal working margins, and o-perators may purchase from farmers with the knowledge that the purchase of their meat by tlie Government is assured. “AA’ar Conditions impose grave difficulties in the direction of transpoit and manpower,” said Mr. Barclay. "Producers can assist in meeting these difficulties to some extent by ensuring a normal flow of stock to killing works, and in particular all farmers should endeavour to send lambs forward at t'le earliest possible date to spread the peak load and thus conserve manpower.”