THE EXPORT OF MUTTON

Press, Volume LXXV, Issue 22768, 21 July 1939, Page 10

THE EXPORT OF MUTTON

Effects of British Restriction MR H. D. ACLAND’S VIEWS Control of Production Thought Possible [THE PRESS Special Service.! WELLINGTON, July 20. The difficulties which faced the Dominion because of the restriction imposed on the import of mutton by the British Government were outlined in an address by Mr H. D. Acland, president of the New Zealand Sheepowners’ and Farmers’ Federation, at Wellington to-day. Mr Acland suggested that it might be necessary to impose a weight restriction on the carcases of sheep. “In addition to our difficulties, which are the result of lower prices overseas,” Mr Acland said, “we are also faced with a definite limitation of the quantity of meat for export to what is admittedly our only market. Great Britain, For the first time in our history the British Government has set a limit to the import of our mutton and lamb, and this will mean that unless trading conditions and Government policies alter in consuming countries that any prospect of future expansion in our meat export trade will disappear, and that some form of control of production for export, as well as of export itself, may have to be adopted. There is every prospect of our having about 26,000 tons of meat to dispose of above the quota allowed vu into the British market for the year ending December 31. This is equal to all the ewes killed for export this season.

“The number of ewes killed is roughly 1,000,000, and the skins will average in value 2s 6d, while the-car-case is estimated to be worth 2s for meat meal or other use. It has been suggested that a price might be fixed for ewes at, say, 10s, This would mean that approximately £300,000 would be needed to cover the difference between the 10s a head price fixed for the whole of the 1,000,000 ewes and the 4s 6d represented in the value of the skin and carcase. In view of the need for maintaining the supply of breeding ewes from the hill country to the farmer for lamb fattening, a straight-out subsidy under producer control might be justified, at least for this coming year, which may be one of adjustment to the altered conditions. Failing this, it is calculated that a levy of 5.32 d per lb on all wethers and lambs killed would provide approximately £312,000, which would meet the position, financially, but might result in correspondingly lower prices being paid for store lambs by farmers fattening for export. The Ottawa Alternative “If an * arrangement can be made with the British Government to purchase and store, say 500,000 carcases of ewes as an emergency supply in case of war needs, with an assurance that this stored supply would not be dumped on the market in competition with our next year’s output, the position would be relieved at least temporarily, although it is doubtful if, taking the long view, any lasting benefit would result from attempts to spread the loss from the marketing of any particular product over other classes of produce in the same industry. “It has been suggested that the proposal, which was discussed as an alternative, had negotiations with the British Government at Ottawa resulted in a large cut in quantities of our meat imported into Britain, may now be considered. That is, that a reduced weight a carcase should be insisted oh for export, sufficient to meet the rerduction in total tonnage. For instance, if the average carcase weight of our lambs next season was reduced from this season’s average of 331b to 321b on 9,250,000 carcases, this would represent a total saving in weight of lamb shipped of roughly 4129 tons, the value at 7d per lb. equalling approximately £270,000. Last season’s? output of wether carcases, which is the largest since the 1931-32 season, was 1,416,074, with an average weight of 531b. If the average wether weights could be reduced by say, 21b a carcase, this would show a saving in weight. of roughly 1264 tons, with an average value at 4d per lb of £47,189. The output for ewes last season was 1,126,232 carcases, averaging 53.11b. or a total weight of 26,474 tons which at 3d per lb would mean £741,272. “From this it will’be seen that if reductions of 11b in weight a carcase of lamb killed, and 21b wejght a carcase of wethers were made, this would provide £317,200, or less than half the value of our surplus for export under the quota, taking the surplus tonnage of ewes killed as 26,474 tons at 3d per lb. No solution to the problem appears to offer in this direction, and in any case we should merely be robbing Petei to pay Paul. “The lightening of carcase weights of mutton and lamb all round, in proportion to their market valuß, might provide a partial remedy for emr present troubles. If this were found to be practicable, much confusion would be saved with respect* to the relative values of fat ewes for home consumption and those of ewes killed for export. I mention this suggestion of lighter weights with others now being made as an indication of the seriousness of the position. I cannot, of course, endorse any special plan at this stage, but I know you will appreciate that the disposal of roughly 26,000 tons of surplus meat for export from this season’s killings is a grave problem. “It would appear to be an open question whether, taking all factors into account, it would not be better at this stage to meet the market, rather than take the risk of upsetting values of store lambs, fat lambs and •wethers by any system of levy on their export value. Experience has shown that temporary expedients to meet altered conditions in trade have more or less failed to accomplish the object aimed at, when the long view is taken.”