The Press MONDAY, JULY 20, 1953. New Meat Prices

Press, Volume LXXXIX, Issue 27096, 20 July 1953, Page 8

The Press MONDAY, JULY 20, 1953. New Meat Prices

Negotiations for the fixing of meat prices under the bulk purchase agreement between the United Kingdom and New Zealand were conducted in a rather different atmosphere this year. There has been a general steadying of commodity prices, and the agreement made last year also limited the increase that could be claimed. There was thus no preliminary argument in New Zealand between those who believed the country in general, and the farmers in particular, should get a fairly large price increase to preserve their relative trading position, and those who thought something less should be asked, partly to help Britain but more, it seemed, to assist in keeping down prices in New Zealand. The change must have made the discussions much less difficult for the New Zealand representatives. The agreement on an increase in lamb prices of 7i per cent, and in other prices of 5J per cent, follows exactly the earlier agreement with Australia, and was presumably influenced by it. As the “ Manchester “ Guardian ” has pointed out, the Australian prices are governed by the production cost clause in its 15year agreement, which was designed to increase production. The same considerations do not apply to New Zealand (the largest single supplier of meat to the United Kingdom); but it would obviously be invidious to make any marked difference between the treatment of Australia and New Zealand while both are selling under bulk contracts. The rise in prices this year is consider l ably smaller than in the two previous years, when New Zealand received increases of 15 and 12J per cent.

The new prices should not be onerous for the United Kingdom Government, which should be able to dispose of New Zealand meat profitably, even ewe mutton, if it can be marketed properly. It should be noted that in all these agreements the increases in price are average increases only, with suitable adjustments according to weight and quality, so that less popular cuts do not carry the weight of prime lamb, with which New Zealand is most concerned. T*he prices should also be satisfactory to New Zealand farmers, who will wish to preserve their competitive position in price and quality against the time when a free market returns. Their big interest is in keeping down the cost of production, over which, unfortunately, they have little control. New Zealand consumers, of course, will have to pay a little more for their meat. On the other hand, they will share indirectly in the advantages of an increase of some £3,000,000 in the country’s export income. .