"Serious Reverse” In Sheep Farmers' Income

Press, Volume CI, Issue 29896, 9 August 1962, Page 18

"Serious Reverse” In Sheep Farmers' Income

A calculation made in the annual report of the New Zealand Meat Producers' Board indicates that compared with 1955-56 sheep farmers in the meat recent meat-killing season suffered a less in income of about £lO million. "Th s is a serious reverse, accompanied as it has been over the seven-year period with steadily-rising costs.” says the chairman. Mr J. D. Ormond, and the secretary of

the board. Mr L. Vojtherr. “It has, of course, resuited in a recourse this season to deficiency payments estimated to total about £2.4 million. “Although this is rather a dismal story it is not without recomnensating factors,” says the report. “For instance an important aspect is the extent to wthich increased production has helped to alleviate the drop in prices. Another is that this season has proved to the producer the value of his meat industryreserve account. without which he may have been in a sorry plight indeed. “The main lessen to be learned both from a national and an industry psint of view, however, is the absolute necessity of stabilising costs,” it says.

Farmers’ loss of income on lamb in the last season, compared with 1955-56. Is put at £.13 million, on wethers £1 million and on ewes £1.4 million. Had production remained at the levels of 1955-56. the loss would have been £19.8 million, but it has been offset to the extent of £7.7 million by the value of increased production and by £2.4 million from the meat industry reserve account, in the form of deficiency payments.

Messrs Ormond and Vogtherr say that the estimations are not made to prove that the average sheepfarmer is in financial difficulty or even to trace the movement of ail his sources of income. The

purpose was to indicate, through a brief study of the movement of lamb and mutton schedule prices, the disturbing downward trend of income from these sources over the last few years. “It could also help to disabuse the minds of those who think that sheep farming in this country is always just a ped of roses.” they say.