H.—3o

MEAT INDUSTRY STABILIZATION ACCOUNT In accordance with the stabilization agreement between the Government and the representatives of the farming industries, referred to on pages 5 and 6 of the annual report for the previous year ended 31st July, 1943, the Meat Industry Stabilization Account has been established (see page 32). The credits to this account are the proceeds of increases in sale prices of meat, edible offals, and tallow, received after 15th December, 1942. The debits 'to the account will be the costs of stabilization in terms of the stabilization agreement' and the cost of the increases in Marketing Department purchaseprices for meat which apply for the 1944-45 season. SURVEY OF SEASON The killings of export-quality meat (luring the season totalled 306,323 tons net, representing a decline of 2-9 per cent, on the previous year. Dry weather conditions in most districts during the early part of the season retarded the fattening of stock and prevented the full realization of the objective of increasing average weights. General rain from March onwards resulted in good autumn growth of pastures, and in some recovery in the numbers of sheep and lambs slaughtered. Mainly for this reason the season has been more prolonged than is usual, killings of sheep and lambs continuing into July. The principal reductions in killings this season have been in lambs and run cattle. The decline in lamb killings amounts to approximately 436,710 carcasses, and in beef killings for export to 32,483 sides, the latter representing the substantial reduction of 11 -58 per cent, on last year. The entire exportable kill of ewes was again purchased by the Marketing Department on a carcassweight basis, and in view of the improvement in the shipping situation and the United Kingdom's need for more meat, no ewes were boned out for canning and all ewes were shipped in frozen telescoped form, except in the case of owes over 72 lb., which were boned for export in accordance with the wishes of the Ministry of Food. As already mentioned, the Meat Pool Account has benefited by the increased return for ewes exported in frozen form compared with their alternative use for canning. Last season's arrangement in regard to the purchase of boner cows was continued this season, but the schedule price was increased from 20s. to 225. per 100 lb. as from the 29th March, 1944. This increase resulted from the decision to supply the United States Joint Purchasing Board with rumps and loins from all boner cows. This cut is more valuable than the over-all value of the carcass, and there is an established value for it on the local market. The balance of the boner-cow carcasses after taking out the rump and loin cut for the United States Joint Purchasing Board has been disposed of to the canners on the same terms and conditions as last year. All bull-beef killings during the season under review have been purchased outright by the Marketing Department at a price which enabled a payment to producers of 20s. per 100 lb. The whole of the boneless bull beef produced was reserved for dehydration. (See reference to dehydration on pages 18 and 19 of this report.) The Government subsidy of 2s. per head on .passed " bobby calves " was continued during the 1943-44 season. As mentioned in the last annual report, the improved shipping position has enabled bobby-calf meat to he saved for export since July, 1942. During the season under erview, instead of shipping bobby veal in frozen form, it has been saved for dehydration. The effect of this, financially, is the same as if the bobby veal had been shipped, as the formula for the dehydrated-meat contract provides for payment by the United Kingdom Government of frozen-schedule prices for meat used for dehydration. The proceeds of the sale of this bobby-calf meat are used in the first instance to recover the cost of the Government subsidy of 2s. per head and the processing and freezing charges attendant upon the packing of this meat for export. By agreement between the Hon. the Minister of Marketing and the New Zealand Bobby Calf Pools Executive, out of the balance remaining in the Bobby Calf Pool Account a bonus of 2s. 9d. per head was paid to producers on all passed calves slaughtered during the twelve months ended 31st May, 1944, which is the end of the bobby-calf season. The subsidy on bobby calves was introduced at a time when the shipment of bobby veal was prohibited, and the carcasses were digested. The particular purpose of the subsidy was to ensure that calves would be sent in to freezingworks to enable the veils to be secured for the making of rennet for the cheese industry. As the boned meat was later saved for both dehydration and export, it was decided, with the approval of the Hon. the Minister of Stabilization, to revert to payment on an f.o.b. basis for the current season and to discontinue the subsidy. From the Ist June, 1944, therefore, the Marketing Department has purchased boneless bobby veal on the same conditions as apply to other classes of meat, at the rate of 4Jd. per pound f.o.b. It is estimated that the average payment for the meat on the above basis will approximate the stabilized level of 4s. 9(1. per passed calf. The balance standing to the credit of the Bobby Calf Pool Account at 31st July is shown on page 32 of this report to be £145,297. During the season, shipping and storage space has again been conserved to the maximum extent by telescoping, de-boning, trimming, and packaging of export meat in accordance with established wartime standards. All ox, heifer, and G.A.Q. cow beef has been prepared in accordance with American specifications. The associated freezing companies have continued during the year to give practical advice and co-operation, which is much appreciated by the Department. SHIPPING The season opened with empty cool stores, duo to the excellent shipping clearances experienced towards the end of the previous season. This circumstance was fortunate, because liftings from January to May were very small. By the end of May, freezing-works' stores were taxed to capacity and once again the value of the emergency cool storage built at the beginning of the war was demonstrated. Deliveries to the United States Joint Purchasing Board of substantial quantities of frozen meat assisted the storage position during this critical period. The Department wishes to record its appreciation of the co-operation extended by the United States Joint Purchasing Board's officers at all times, and particularly during the period mentioned. The Department's thanks are also extended to the Overseas Shipowners' Allotment Committee for their continued assistance in arranging loadings from pressure points. The New Zealand Railways has also been most helpful in their skilful organization of rail transport arrangements.

3— H. 30.

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