MEAT SHIPMENTS

Gisborne Herald, Volume LXVI, Issue 20091, 10 November 1939, Page 2

MEAT SHIPMENTS

OPERATIONS BY TRADE

STATE PURCHASE DELAY

POSITION OF EXPORTERS

INFORMATION LACKING

Pending the elucidation of several points arising from the State meat purchase and the organisation of the scheme, it is disclosed that shipments of meat, other than boneless beef and veal, are being made through the normal trade channels. The British Govefh'rfieht will dispose of this meat oh arrival, but it is hot subject to the New Zealand Government’s prior purchase.

In purchasing fat stock since the original announcement of the State scheme, export buyers have had to take risks based upon assumptions of the eventual situation in determining over-all prices. The net basic price of wool has just been ascertained. Meat rates are to be f.0.b.. but there is still some uncertainty regarding byproducts.

The Position of By-products

Export operators yet lack relevant information regarding the position of edible offal, which is normally a valuable part of New Zealand’s meat export trade. They anticipate that other by-products, such as pelts and hides, will not be embraced in State purchases, but the Minister of Marketing, the Hon. W. Nash, under certain conditions may decide otherwise. He has already intimatc-d to a trade conference that, if the British Government should decide to purchase any portion of a particular by-product, the New Zealand Government would take over the whole output.

Negotiations were in progress for some time with export meat buying representatives on the proposal that the Government should fix a uniform charge to cover administrative and buying expenses of operators in the industry. Negotiations Not Successful Such a set charge would be taken into consideration when the 'buyer assessed the over-all price he was prepared to pay for stock intended for export. It is now believed that negotiations have been unsuccessful in determining a uniform set charge, and the idea will not in consequence be applied to the industry.

The imposition of a uniform charge fob administrative and buying costs, it is pointed out, would not have destroyed price elasticity for stock. The price would be regulated by the value placed upon the by-products by the operator.