AUSTRALIAN MEAT POSITION

Press, Volume LXXVII, Issue 23315, 29 April 1941, Page 8

AUSTRALIAN MEAT POSITION

GOVERNMENT WILL BUY REGULATION OF HOME MARKET Australia normally exports about 25 per cent, of her meat. It is believed that about half of this may eventually have to be eliminated, because of shortage of refrigerated shipping. Already there have been restrictions on the export of some classes, and it is considered that the Government may have to reorganise the industry by severely restricting production, which is a sideline to the wool and dairying industries. This would allow a market to be found for the producers depending entirely or mainly on meat production. When the House of Representatives met recently, prohibition of the slaughter for export of sheep and lambs until July 31 was announced by the Minister for Commerce (Sir Earle Page). He said that if lamb prices fell below ‘‘a reasonable level” the Commonwealth would buy lamb at a rate to be fixed. If the price of mutton did not reach a certain level (to be decided) the Commonwealth would buy canned mutton at a price permitting payment by canners of a specific price to producers. With the opening of the season of spring lamb production the Commonwealth would buy the whole of the permitted export classes of lamb at a price which, although below the United Kingdom contract price, would be such as to give an assured and reasonable return to producers and give them security. ‘‘From Government investigations,” Sir Earle Page added, “it is expected that because of lower values which will result, consumers will eat more lajnb. It is also likely that certain classes suitable for wool will be held in the country. This should result in very little surplus being available until the next season’s lambs come in. To make sure, however, that there will be a firm bottom to the market and no possibility of a glut, the Government will arrange to step in and buy when necessary. “If, because of restriction of mutton expdrt, and diversion of consumption from mutton to lamb, mutton prices show a tendency to fall, the Government will arrange to can mutton, paying prices that will ensure a reasonable return to, producers. It is expected that maximum liabilities which the Commonwealth will have to assume because of this canning policy should not exceed' £250,000.” Sir Earle Page Explains

Sir Earle Page said there had been fear that there would be such an accumulation of stocks of lamb before the end of next season that a number of works would have to close. Last September arrangements were made with the United Kingdom Government for sale and shipment of 249,000 tons of beef, mutton, iamb, and pig meats. Deterioration in the shipping situation, however, had caused successive reviews of these figures until it was obvious that nothing like these quantities would be shipped. It was expected that demands from the services, particularly in the Middle East, would enable next season’s beef production to be disposed of either in frozen or canned form. Mutton and lamb producers, therefore, would be more severely affected by lack of shipping.

With stocks in store at present and estimated production and shipments over the next four months, if was clear that if nothing were done serious difficulty would be experienced in handling surplus lamb production before the next season was through. It was not too much to say that accumulation of stocks would be such that the stores would be full before the end of the season, notwithstanding the additional storage which would be available. The Government had, therefore, decided on the programme to clear stores of mutton and lamb before the spring.