Impact Of Meat Price Control On Farmer

Press, Volume XCIX, Issue 29152, 12 March 1960, Page 8

Impact Of Meat Price Control On Farmer

There is a feeling among some farmers that implementation of control on retail meat prices may mean that they will be the ultimate sufferers in that butchers may seek to maintain their margins by paying less for stock, at the markets.

This, however, may not be the case for prices paid for New Zealand meat Jor export play an important part in moulding the trend of internal meat prices. In other words in the export killing season a butcher must be prepared to pay at least export rates to get his lamb supplies. Premiums

However it is conceivable that outside the export killing season there could be some decline in premiums butchers are prepared to pay for stock marketed in the winter and early spring, but if this became apparent farmers might not inclined to make the special feed provisions to bring their stock to the fat stage at this time of the year. The beef market in particular may be more susceptible to price movement following control as beef production in the South Island largely goes into local consumption and generally the law of supply and demand prevails, on the basis of internal factors. Consumption It is of course conceivable that the lower retail prices could increase consumption of meat and in this way reduce slightly, at least, the quantity of meat available for marketing overseas. This could be qpite a&good thing. In fact on the basis of overseas experience it is reckoned that a 10 per cent, decline, in prices would be followed by about a 5 per cent, increase in consumption. But even if price control does not on a long term basis have any marked effect on prices paid to producers for their fat stock, it does have an unsettling effect on the industry.

An instance of this was a West Coast farmer who said this week that he was considering giving up carrying 100 head of cattle through the winter and running more ewes in their stead. He esti-

mates that it cost Is 6d a day tor hay alone to feed each beast at this time of the year and unless he is certain of getting a reasonable premium for his trouble he is considering turning to ewes which, he says, may pay him as well.