PRODUCE SOLD TO BRITAIN

Press, Volume LXXXVI, Issue 26129, 3 June 1950, Page 8

PRODUCE SOLD TO BRITAIN

PRICES RECEIVED BY NEW ZEALAND REVIEW BY FARMERS’ PRESIDENT Although the f.o.b. sterling prices for New Zealand meat exports (meat other than pigmeats) increased between 1939-40 and 1949-50 by 82.75 per cent, the United Kingdom wholesale prices index for industrial materials and manufactured goods, which was the only guide to increased prices for imports from the United Kingdom, had increased by 151.5 per cent, from August. 1939. according to the United Kingdom Board of Trade Journal of February 4. 1950, said the president (Mr L. C. Gardiner) at the fifth annual provincial conference of North Canterbury Federated Farmers yesterday. If New Zealand received for her bare meat, export prices including an increase proportionate to the increase shown in the United Kingdom index for industrial and manufactured goods, it would be necessary for the following payments to be made (1949-50 sterling prices in parenthesis):—lamb. 361 b and under. 16d (11.65 d beef hinds. 2101 b and under, lid (7.995 d wethers, 481 b and under. 10.846 d (7.881 d ewes. 641 b and under. 6.916 d (5.014 d porkers. 15.09 d (11.352 d “This gives an indication of how much our economy has been thrown out of gear by sales of our produce at below world parity and why it was necessary for the late Government to introduce so many controls, import and otherwise, in a futile endeavour to correct the position.’’ he said. “Prop to Economy” “I venture to say that it has been the price of wool which has propped up the economy of New Zealand these last two years—not very successfully. I will admit.” said Mr Gardiner, when he recalled that since the war contracts had been made between New Zealand and Great Britain for the sale and purchase of New Zealand meat, butter and cheese, although the wool market had remained free. “If we are to maintain our standard ©f living here, some other props are necessary.” he added. Mr Gardiner made, in considerable detail with supporting figures, a comparison of prices paid by Britain for produce from New Zealand and other countries. “In December. 1949. New Zealand received 42s lOd per cwt less than the Argentine for frozen beef (fores and hinds), and 2s 2d per cwt less than Australia, at a time when the carrying of more cattle on our hill country was becoming imperative.” said Mr Gardiner, after presenting a series of tables of figures. “For mutton we received 2s 9d per cwt more than Australia, out 22s 7d per cwt less than the Argentine. For lamb the position on the surface is better. We receive to-day 12s 9d more than Australia, but 6s 8d per cwt less than the Argentine. It must be remembered, however, that our lamb is of superior quality.” added Mr Ga r diner Mr Gardiner directed attention to the announcement by the British Minister of Agriculture 'Mr Tom Williams! of the prices the Government would pav farmers from April 1. 1950. for fat sheep and lambs. “The present average United Kingdom price for fat sheep is 26.75 d per lb dressed carcase weight. The price that the United Kingdom Government is paying New Zealand for its first-grade lamb is 11.65 d per lb dressed carcase tveight. bare meat.” he contniued. Price in U.S.A. In a statement in the “Farmers’ Weekly.” the official organ of the Farmers’ Union of Western Australia, on March 2. the Minister of Agricul-

ture in Australia (Mr J. McEwen.) had said: “We have made a small trial shipment of Australian lamb to New York. This reveals that in that market our choice lamb is valued at two or three times- what has been regarded as export parity. One hundred first-class lambs weighing 351 b had realised 40 cents per lb." “This equals approximately 2s IOAd per lb New Zealand currency.’’ added Mr Gardiner. “When so much propaganda is coming out of Britain on the eve of negotiations under the meat contract between the two Governments. and there is talk of an over supply there, we must consider cur own position, especially as dollars are so urgently needed by New Zealand. It is also known that a market for ewe mutton exists in Canada, ■where a soup manufacturing company would take that type of meat.’’ said Mr Gardiner. “We are therefore selling butter at 9s per cwt less than Denmark.” he continued, after a further comparison of figures. “I am aware freight must be taken into consideration. During 1949 Denmark sold to countries other than the United Kingdom 42.000 tons of butter at an average f.o.b. price of 412 s sterling per cwt. This gives an indication of world prices much above what we receive, and I think it is a fair assumption that the astute bargainers in Britain have used the prices at which we sell our butter to force the Danish price down to the figure of 271 s 6d for their surplus. while asking us to increase production of our lower-price article.” (Mr Gardiner gave the price to New Zealand as 252 s 6d.) Dealing with cheese. Mr Gardin?r Baid: “In 1949 Canada exported to the United kingdom 21.953 tons of chee.e at a price of 30 cents per ’b. which .s Boproximatety 218 s per cwt. sterling or New Zealand currency. The 1950 contract provides for the shipment of 31.000 to 38.000 tons to the United Kingdom at 25 per lb. which is Boproximately 182 s per cwt sterling or New Zealand currency. This price gtill considerably higher than the price that the United Kingdom Government is paying for New Zealand cheese. 40s 6d to be exact.” Price for Bacon Discussing the price for bacon. Mi Gardiner said that “during 1949 Britain bought from Canada 24.900 tons oi bacon in the form of Wiltshire sides a 1 36 cents per lb. which was about 28d per lb sterling or New Zealand currency. Under the 1950 contract the United Kingdom had agreed to purchase about 26.000 tons of bacon at c price of 29 cents per lb. which was about 22.6 d per lb sterling or New Zealand currency. This Caradian bacor was cured in Canada and shipped tc the United Kingdom, where it wis smoked. For similar quality bacon the United Kingdom was paying New Zealand 12.8 d per lb for first quality sides This was shipped uncured so it would be necessary to add the cost of curine and shrinkage, about 3d per lb. to gel a true comparison. This made th: New Zealand price about 15 8d per ’b compared with Canada’s price of 22.6 d per lb. Here again it was to be expected that there would be a slight difference in freight. “I am npt unmindful oi the benefits to be derived from long-term contracts or as far as dairy farmers are concerned from a guaranteed price.” said Mr Gardiner, ‘'but I am of the opinior ■we must look where we are going, and it is for this reason I draw vour attention to this matter.” “We would not mind if the citizens of Britain received our cheap meat but I happen to know that they gel our dear meat.” said Mr G. C. Warren speaking after the President’s taternent. “We have every symnathy with the British people, but not so mu with the peonle who are running then country.” The extra money from produce was needed to pay for dearer imported goodc said Mr Warren.