MEAT EXPORTS

Gisborne Herald, Volume LXVI, Issue 20120, 14 December 1939, Page 6

MEAT EXPORTS

WARTIME SALE PURCHASE CONDITIONS MINISTER’S STATEMENT 100 PER CENT PAYMENT QUESTION OF STORAGE (Special to the Herald.) WELLINGTON, this day. The purchase arrangements and prices for all classes of meat loaded for the United Kingdom on overseas vessels are announced by the Minister of Agriculture, the Hon. W. Lee Martin, who stated that the procedure which had been adopted was designed not only to meet the wishes of the United Kingdom Government, but also to facilitate the smooth and expeditious handling of meat products at ail stages. “The Minister said that the instructions issued by the Export Division of the Marketing Department set out clearly the method for grading, parcelling and shipping. Payment in full at f.o.b. prices (New Zealand currency) as set out in the schedules would be made against shipping documents as soon as possible after completion of loading at each port. “In shipping out meat,” the Minister said, “the general principle will, in the meantime, be followed by freezing companies of ‘first in, first out.' Later on, it may be necessary to ask for shipment of particular classes and grades of meat to fit in with seasonal trade, or other requirements of the British Government. The department reserves the right to order out shipment of particular classes and grades of meat as may be considered necessary or advisable. Terms of Contract “The general condition of purchase in respect of grading laid down by the contract with the Ministry of Food is that the meat is to he of the usual descriptions and grades is at present shipped from New Zealand. This’, however, has to be qualified as regards the North Island to the extent that all works in future will grade the Southdown cross lambs separately from the ordinary crossbred type lambs, and an undertaking has been given that all carcases graded Southdown cross will be of Southdown type.

“The grading standard in respect of these -two classes of prime lamb will be the standard which has been in operation for the last two years at the Hawke’s Bay works. These standards will be established and supervised by the supervising graders of the New Zealand Meat Producers’ Board, who also will continue to superintend the grading of all other classes of meat.

“At the same time it is most important that the undertaking, we have given that shipments will be .of the usual descriptions and grades shall be conscientiously carried out and it is expected all works managements will themselves, in their own interests, see that their standards of dressing and general get-up of both carcases and of sundries shall be fully up to their regular standards in all respects.

“Under the terms of the contract there is to be only one grade of ewes; the grade arranged for is to be a straight run of what were formerly in many works classed as first and second.

Right of Survey

“No meat shall be tendered for shipment unless it is in good condition. The Food Ministry has the right to survey meat upon arrival for quality, and if not up to standard, allowance to be agreed upon between buyers and sellers’ surveyors. In the event of disagreement, an umpire is to be appointed by agreement between the two parties, whose decision shall be final. The buyers also have the right to weigh cargo upon arrival, the conditions of weighing to toe advised later. “In view of these provisions, the Marketing Department reserves the right to recover from sellers, in the event of quality claims being received from the United Kingdom or in the case of claims for short weight. “All meat shall, in respect of fire and all other loss or damage, toe at the risk of the sellers until it is placed, f.o.b. ocean steamer, except that in cases where meat is forwarded from one ocean shipping port for shipment on board an ocean steamer at another port on through bill of lading, it shall be at the risk of the Ministry of Food from the point of departure from the initial port. “The Food Ministry undertakes that in the event of meat having to toe kept in store in New Zealand for an unduly long period, owing to the inability of the Ministry to provide ocean-going ships, it will make payment towards the consequential additional cost of storage in accordance with arrangements to be agreed with the New Zealand Government, in the light of actual experience up to January 34, 1940.

Event of Delay

“There is a possibility that in the event of delay in shipment owing to the inability of the Food Ministry to provide ocean-going ships, the Ministry will make payment on account in accordance with arrangements to be agreed with the New Zealand Government. It has been suggested that the payment on account may amount to 50 per cent of the value of any meat which has had to remain in cold storage for more than two months by reason of the inability of the Ministry to adhere to the shipping programme.

“The f.0.t0. prices payable in New Zealand currency, as set out in the schedules, have been arrived at by converting the sterling f.o.b. prices agreed with the United Kingdom Government, at the current telegraphic transfer rate of £124 7s 6d, and deducting per cent to cover Marketing Department expenses, interest, and Meat Board levy. The terms of the purchase agreement with the United Kingdom Government provide for payment of 90 per cent on shipping and 10 per cent within 28 days after arrival, or in case of the steamer being lost, on estimated due date of arrival. It is intended, however, that the Marketing Department will pay shippers the full ,100 per cent upon shipment. The interest which will accrue on the remaining 10 per cent from time of shipment until settlement is received will be absorbed in the i per cent deduction already referred to. “Freezing companies will discontinue payment of Meat Board levy as from the commencement of this purchase arrangement, i.e„ with any meat loaded for the United Kingdom and consigned to the Ministry of Food. The 'Meat Board is advising the Customs Department to this effect. Out of the i per cent deduction, the Marketing Department will henceforth pay

to the Meat Board an amount to be agreed upon to cover the Meat Board’s expenses.

“The resultant price is the f.o.b. price payable to owners of meat upon shipment at each port. “Freezing companies have already been instructed by the Primary Industries Controller to telescope all mutton and lam'b killed for export on and after November 27. The additional cost of telescoping is a matter which is at present being discussed with the United Kingdom Government. “It is a condition of the purchase agreement that 75 per cent of the total weight of pork shipped to the United Kingdom shall be of the 101/1301b range. The Marketing Department will therefore hold each shipper responsible for the shipment by him of the appropriate weights of porker and baconer pigs, Failure to comply with this provision may result in payment being withheld toy the department irt respect of any porker pigs shipped in excess of the 25 per cent weight permitted. “Any other points which may arise out of these arrangements will toe considered toy the Marketing Department as they occur.