Sales Of N.Z. Lamb Likely To Improve

Press, Volume C, Issue 29707, 28 December 1961, Page 12

Sales Of N.Z. Lamb Likely To Improve

The New Year should open with more favourable conditions for the disposal of new season’s New Zealand lamb. The supply from United Kingdom farms, from Australia, and from Argentina, will be lighter in this period, and good opportunities should be available to traders to dispose of supplies of New Zealand lamb, according to the market information service of the New Zealand Meat Producers’ Board.

Although stocks of imported lamb in store in the United Kingdom were recently running weU ahead of the yearearlier figures they have now been moved at an improved pace and are below those of December, 1960. Seasonal increase in lamb and hogget supply may be expected from United Kingdom farms towards the end of tire first quarter. . Because of a substantial increase in the flow of cattle, sheep, and lambs from United Kingdom farms for slaughter during 1961, the United Kingdom Ministry of Agriculture has had to bring down a supplementary budget to meet the cost of extra subsidies. The Minister of Agriculture (Mr Soames) said in the House of Commons that the total cost of agricultural support for the United Kingdom producers foe the present financial year was now estimated at £344 million—that was £7Bm in excess of the original estimate. Mr Soames said the principal cause of the excess was the increase in the cost of guarantees, now estimated to to cost £ 35.3 m for cattle. £ 13.6 m for sheep and £ 17.9 m for pigs. Matter For Concern He said that the increase in the cost of the guarantees was a matter for serious concern, “which we will be bound to take into full account in the course of next year’s price review.” Mr Soames added: “There were very exceptional circumstances this year, beginning in spring, when a much increased number of cattle came forward after the spring flush of grass, a much greater number than the market is accustomed to handling. “That had the effect of making wholesale prices drop very considerably. Later on, in the summer, the crop of lambs was infinitely higher than the average. That had

the effect of the market dropping down still further When that was beginning to recover the exports of bacon from Denmark increased more than expected, and the pig market was affected. ‘‘lt has frequently happened in the past that individual fatstock items have increased to these sort of amounts, but never before has it happened that all three have done so in the same year. “For the future, given, on the one hand, that we do not alter our trading arrangements with exporting countries, and, on the other, we hold to our pledges to agriculture under the 1957 act. there is only limited room for manoeuvre in the ensuing year. Within Limits “Within these limits we will do everything possible, including any action which it may be right to take at the price review, and also any improvements we think ought to be made to the marketing arrangements." The total cost of agricultural support, at £ 344 7m. is well in excess of New Zealand’s entire annual export realisations, which are barely £3oom. The “Financial Times.” London, reviewing the Ministerial announcement on subsidies: says: “Notice has already been served .on the farmers that they must expect a tough review next year, and within the longterm assurances this could mean a cut of £lsm to £2om in the value of guarantees, after allowing for increased costs—chiefly labour. “Lamb will be a certain victim,” say the “Financial Times.” “Beef and pigs are covered by a two-year pledge on price. . . .” It continues: “It is no use disguising the serious situation into wh :h farmers and the nation are drifting with an agricultural policy now in need of urgent overhaul. “The trend of farm output, both here and in Europe, is inexorably upwards, and this particular shock (the increased cost of guarantees) will not be money wasted if it prepares farmers as well as policy makers for radical changes in our present system of farm support.”