FAT STOCK PRICES.

Shannon News, 27 February 1925, Page 2

FAT STOCK PRICES.

Speaking to the General Manager of one of our biggest freezing works the other day. "Rusticus" was surprised to hear the fervent hope expressed, that the present fat stock season would be a, short one. "There hai been almost an entire absence of c.i.f. business," said the manager which mea'ns, of course, that the freezing companies were carrying a tremendous risk should a decline in values take place. The drop in the London quotations for frozen meat reported a few days ago seems to fully justify the serious views taken up the present meat situation by the said general manager. It has been point-' ed out on several occasions, that the prices paid farmers for fat stock throughout the season were if anything above London parity. The pace was said to have been set at the beginning of the season by one of two companies and a tremendous number of lambs as well as sheep were bought at high prices—particularly in the South Island.

According to figures published by the Meat Control Board, there were 391,000 carcases of lamb a'nd 106,000 carcases of mutton on board steamers still in New Zealand waters at the end of January. In addition there were in New Zealand stores at the same date 515,000 carcases of lamb and 380,000 carcases of mutton. Taking into account the decline in meat prices as well as in wool, pelts and tallow, it is estimated that the recent drop in values may be put down as equal to 5s per head on wethers and ewes an'd 3s 6d to 4s on lambs. Considering, therefore, the large quantities held at owners' risks, the anxiety expressed by our informant can be easily understood.

At the same time it is pointed out, that provided the market declines no further, not much harm will be done, which appears to indicate that there must have existed a fair margin on prices paid farmers up to the present.