SYSTEM EXPLAINED.

Ashburton Guardian, Volume 60, Issue 196, 28 May 1940, Page 2

SYSTEM EXPLAINED.

PURCHASE OF SHEEPSKINS. (Per Press Association). ‘DUNEDIN, May 27. A memorandum has been issued by the New Zealand Sheepskin Control explaining the system of purchase of sheepskins and lambskins. The control is the sole buyer for tlie Government of all domestic sheepskins and lambskins, including those from sheep and lajpbs sold by freezing companies on the local market.

The method of purchase is by appraisement, at fixed appraisement points at schedule prices, the chief points being that stock and station agents, stores, and dealers are still allowed to operate in their normal districts. In those cases where producers and dealers previously marketed their skins themselves, special arrangements have, where possible, been made for the appraisement and purchase at control schedule.

Schedule prices are based on control sales, which are the exportable surplus, to the United Kingdom, at prices now agreed to. The control is a producers’ pool, and is not run to operate at a profit. The cost of running the control is definitely not greater • than the cost of buying and marketing skins in the pre-war market. - The fellmongering of domestic skins, green or dry, 'is prohibited except on behalf of the control. Such skins as are fellmongered are first bought by the control, and the proceeds go into the control receipts. The United Kingdom price for our exportable surplus is full and fair. For dried skins, it is based on the slipe wool content of the skins, the value of resulting pickled pelts at world parity prices, less an agreed charge allowing for fellmongering; but it gives a lesser return than from skins fellmongered green in New Zealand, largely because pickled pelts from green skins so fellmongered are more valuable than pickled pelts from dried skins. For this reason fellmongering green skins in New Zealand is of only normal quantities in order to ensure the normal exportable surplus the United Kingdom has asked for, and is done on behalf of the control. To ensure fair competition between butchers throughout the Dominion, the following is the third schedule of prices for full-wool skins, the prices being for super, grade, second grade, second pelted grade, and dead respectively :—Merino, 60-64, Sfd, ,7|d, 6d; first halfbred, 56-60, B|d; lialfbred, 50-56, lid, lid, 9d, 8d; first crossbred, 48-50, IOJd, 7 )d; medium crossbred, 66-68, lOjfd, 9|d, B£d, 7|d; crossbred, 40-44, lOd, 9d, Sd, 7d. * '