U.K. Fat Lamb Price Cut To 3s 2d

Press, Volume CI, Issue 29798, 14 April 1962, Page 7

U.K. Fat Lamb Price Cut To 3s 2d

The guaranteed price for fat sheep and lambs in the United Kingdom for the year ending March 31, 1963, will be 3s 2d per lb—more than twice as much as the New Zealand producer is now receiving for top-grade woolly lambs. The United Kingdom price for the 1962-63 season was reduced Id per lb from last year. The United Kingdom price is guaranteed by the United Kingdom Government. The floor price for meat in New Zealand is maintained from the Meat Board's accumulated funds, without Government support.

Details of the United Kingdom prices for the 1962-63 season are given in the latest monthly bulletin from A. J. Mills and Company, Ltd., Tooley street merchants. They are as follows:

Price, Var'n ct 1962-63 1961-62 Milk (gal.) .. 3s 1.85 d —o.4d Hen eggs (doz.) 3s 9.79 d —l.sd Fat cattle (live cwt) 167 s n.c. Fat sheep and lambs (per lb dressed) .. 3s 2d —ld Fat pigs (score deadweight) 46s 9d n.c. Wheat (cwt) .. 26s lid n.c. Barley (cwt) .. 27s 7d n.c. Oats (cwt) .. 27s 3d n.c. Rye (cwt) .. 21s 7d n.c. The guaranteed prices for milk and eggs are guaranteed average returns to the farmer. The guaranteed price for fat sheep and lambs is paid on the estimated dressed carcase weight. Milk Output “The rising trend in milk production shows no sign of abating and increases in liquid sales have not been sufficient to maintain pool prices,” the bulletin says. “Last year o.Bd a gallon was added to the guaranteed price on the false assumption that a satisfactory scheme would be devised which would bring home to individual producers that output beyond a certain level was not in their interest unless it could be produced profitably at the price at which milk not required for liquid consumption could be sold for manufacturing. “Only half the increase has

now been removed and even this small cut will be partially offset by increasing the quantity of output to w’hich the guarantee will apply, in accordance with the 24m gallon increase in liquid sales last year. Retail milk prices will again be increased during the year in an attempt to minimise the cost of the price guarantee.

“The sharpest reduction was IMid a dozen off the hen egg guarantee, since the Government feared that production was rapidly outstripping demand. As promised, no change was made in the pig guarantees, even though the subsidy bill had doubled. In spite of a very large increase in the cost of fat cattle support the guaranteed price Will remain at 167 s per cwt live Standards of eligibility. however, will be tightened, so as to produce beef and veal more easily marketable at better prices. Similarly, maximum marketing weights for sheep will be reduced as will the guaranteed price by Id per lb to 3s 2d. “Apart from the guaranteed prices, the main changes were a reduction in the fertiliser subsidy by about £2lim per annum from July and the extension of aid already given to 40,000 small farms to a further 13,000. Increased emphasis will in future be placed on marketing rather than production and £lMsm will be granted over the next three years for market research, promotion of grading schemes, etc., provided that the farmers put up a similar sum. Huge Cost “Deliberations at this year's farm price review were overshadowed by the huge cost of the guarantees. In the financial year just ending the agricultural subsidies are expected to reach £3slm as compared with £263m in the

year to March 31, 1961. Although at the 1961 review the theoretical value of the guarantees was increased by only £l4m, in the event the cost has turned out to be about 30 per cent, greater than originally estimated, “This uncertainty regarding the Exchequer liability is inherent in the system set up under the 1947 Act, and there is evidence that the Government would prefer to modify the method of subsidising farmers. Freedom of action is, however, circumscribed by the assurance given to the farmers’ representatives that the system will not be changed during the life of the present Parliament (which could run for a further two years), by the 1957 Act which limits reductions in guaranteed prices, and also by promises made last year not to reduce some of the guarantees in 1962-63,” the bulletin says. The cost of the United Kingdom’s farm subsidies rose from £ 262.9 m in 196061 to £351.1m in 1961-62. The reductions announced this year amount to a “notional" but of £ll million (more or less, depending on fluctuations in market prices). Cost to Government

In 1961-62 the cost to the United Kingdom Government of price guarantees on specific products was as follows, according to the bulletin: — £m Cereals .. .. 73.5 Eggs, hen and duck 15.5 Cattle .. .. 50.8 Sheep .. .. 32.7 Pigs .. .. 40.2 Milkl3.o Wool 2.6

(The £l3m paid to support the price of milk to the farmers excludes welfare schemes’ expenditure on milk.)

Other forms of farm subsidies included fertiliser subsidies totalling £ 33.0 m and calf subsidies totalling £ 18.2 m.