SUPPORT PRICES FOR MEAT

Press, Volume XC, Issue 27470, 2 October 1954, Page 6

SUPPORT PRICES FOR MEAT

Suggested Scheme Outlined

FARMERS “ENTITLED TO KNOWLEDGE”

(New Zealand. Press Association) WELLINGTON, October 1. 4 4 ® eca . use the Cabinet’s decision to defer, for an unstated period, the introduction of the floor price plan for meat exports, I think that meat producers are entitled to know the" mam provisions of the plan drawn up by the Government w mi J l, G ee ’. sai d Malcolm, chairman of the Meat and Wool Section of Federated Farmers, in a statement issued today. «

v legislation is required to implement this scheme. Cabinet consent only is required to introduce it for the 1954-55 export season.

, “The plan has the approval of the Government’s chief advisers on farming and financial matters, the DirectorGeneral of Agriculture (Mr E. J. Fawcett) and the Secretary of the Treasury (Mr B. C. Ashwin), who were members of the committee,” said Mr Malcolm. “The plan also has been approved by the representatives of Federated Farmers and the Meat Board.

“The Government committee did not meet until July 22, four months after representatives of the meat producers had asked, on March 25, 1954, for the introduction of floor prices for meat exports,” said Mr Malcolm.

“The committee agreed that the plan should toperate during the 1954-55 season, so that practical experience of the plan could be obtained before it was completely reviewed before the commencement of the 1955-56 season.

“In my opinion this plan, which has been accepted by all those primarily concerned other ' than the Cabinet, could undoubtedly be of some real benefit to producers of certain types of New Zealand meat exports during the 1954-55 season,” Mr Malcolm said. “In particular, exports of ewe mutton and pork are at present realising wholesale prices below those recently realised under Government-controlled marketing in the United Kingdom. “I have summarised the main provisions of the plan as follows: “(1) The floor price for each grade and weight range of meat exports for the 1954-55 season to be 90 per cent, of the average of the last three seasons’ prices for each grade and weight range of meat exports. The following examples are given:— 1951-52. _ d. per lb. Prime Down lamb, 36/U .. 14.48 Wether mutton. 48/U .. 8.94 Ewe mutton, 48/U .. 5.57 G.A.Q., ox and heifer beef 10.92 “(2) The floor prices for each grade and weight range of meat exports would be announced at the beginning of the season.

“(3) In the event of the wholesale price realised for any grade or weight range of New Zealand meat at Smithfield Meat Market, London, during any particular week (adjusted to an f.o.b. basis •in New Zealand) falling below the appropriate floor price of that grade or weight range, the New Zealand Meat Producers’ Board would forthwith announce the equalisation payment to be paid to primary producers selling that grade or weight range of meat to exporters during the next week. “For example, suppose the wholesale price ruling at Smithfield for ewe mutton, 481 b and under, during the week ended January 7, 1954, was 5d per lb f.o.b. New Zealand, then New Zealand meat exporters and freezing companies would pay to farmers id per lb in addition to the ordinary fat stock schedule price on all ewes, 481 b and under, purchased for export during the next week. “This additional payment would be shown separately on farmers’ account sales, and freezing companies or meat exporters would be reimbursed by the Meat Board out of the meat industry reserve funds of about £40.000,000,” Mr Malcolm concluded.