NEW SEASON’S MEAT PRICES

Press, Volume LXXXIII, Issue 25306, 4 October 1947, Page 8

NEW SEASON’S MEAT PRICES

—« — Reply To Complaints Of Producers STATEMENT BY MR G.H. GRIGG

(P.A.) WELLINGTON. October 3.’ Certain complaints that the new season’s schedule of meat prices did not adequately compensate the producer for his increased costs were without foundation, and showed a lack of knowledge of the true position, said Mr G. H. Grigg, chairman of the New Zealand Meat Producers’ Board, in a statement to-day. The Government’s decision to withdraw certain of the war-time subsidies on meat implemented what had been advocated for some time by farmers throughout New Zealand, continued the statement. It meant that the full cost of meat fell upon the consumer, instead of his being, in effect, subsidised by the farmer, as most of the previous subsidies had been paid out of the Meat Industry Stabilisation Account. It was far better that the impact of those high costs should be cushioned now, when prices were relatively high, than later when prices might fall.

The board’s case for increased schedule prices covered the increased Costs of fertilisers, freight, wages, and consequential increases as far as these coul< be estimated at present. The prices asked for by the board were approved by the Government. In the board’s opinion, these prices compensated the meat producer for the proportion of increased farm costs applicable to meat, as distinct from wool. Presenting a case based on the rise in the cost of production on sheep farms, th•> board, through the fat stock schedule prices, obtained a percentage increase applicable only to meat. It was not possible to load meat prices with an additional percentage to cover the pronortion of costs applicable to other sheep farm activities* such as the growing of wool. The sheepfarmer in accepting market prices for wool naturally took the risk attendant on such a venture—he might or might not be compensated for increased costs.

Increase of £2,000,000 The increased prices this season would result in an overall increased payment to the meat producer of £2,000.000 on export meat, as the schedule increases would be reflected in the price of meat sold for local consumption, which was equal to half the tonnage exported. The total overall increased payment to meat producers would be near £3.000,000. The amount of manufactured fertilisers used during the 1946-47 rationing year was 605,000 tons. For subsidy purposes the percentage use of fertilisers bv various nrimarv industries was assessed as dairy, 55 per cent.; meat, 21 per cent.; wool, 14 per cent.; other, 10 per cent. “If the consumption of fertiliser reaches 700,000 tons this season,” concludes the statement, “the meat industry’s pronortion of the additional cost of £4 200.000 will equal approximately £BBO.OOO, leaving approximately £2,000.000 to provide for other increased costs, such as wages, freight, etc. In the board’s opinion, this covers the costs in question.”