Ultimatum by Meat Board

Press, Volume CXI, Issue 32737, 14 October 1971, Page 1

Ultimatum by Meat Board

(New Zealand Press Association)

WELLINGTON, October 13. The chairman of the Meat Board (Sir John Ormond) tonight issued an ultimatum to the country’s freezing companies. He said that if freezing companies offered in the opening schedule less than $4.50 for each top grade lamb the board would market the lambs itself.

But a meat industry spokesman said tonight that the meat operators’ schedule due this Friday was likely to be about $3.80 for the top grade.

The board does not have the power to take; over marketing of lamb; (in Britain, but Sir John (Ormond said'he was ask-; ling the Government toj 'pass the necessary legis-! lation. He said that the; Government was ready to support the board. ; “There is no risk in mark-; eting our own meat; we have; sloom in the meat industry' 'reserve account to back us! up,” Sir John Ormond said. ;

! He said he considered that [the overseas markets would limprove in a “few months.” Australia and the Argentine had ended their killing season while New Zealand was just beginning. The board was spending an additional $60,000 on two new promotional campaigns to clear the stores of lamb in Britain. “In a few months we will dominate the market,” he said.

Low prices “The Meat Board will not; stand by and see low prices; I paid in the opening schedule I with the effect that when British prices improve meat pro-i i ducers will have profits taken 'from their pockets.” If companies, especially' i farmer-owned companies increased their killing charges too much, they would be creating problems for their own farmer shareholders, said Sir John Ormond. “If the price falls below $4.50, for any reason, the board will intervene. The board could do this in a number of ways. Marketing plan “One of the proposals likely is that it could buy the first one million or two million lambs.” Asked whether this meant that the board would go into the marketing of lamb itself, Sir John Ormond said that this was a matter to be decided. “Very likely the board

would deal in its marketing Through the companies, ob(viously a sensible thing to; ido.” Earlier in the day a meet-' (ing of the meat and wool; ; council of Federated Farmers ' (unanimously supported the [board’s action. Board’s wishes j ; Sir John Ormond said the .board wanted: ;The Government to persuade; i Britain to delay imposing' its next addition to the; levy on imported lamb.; i Farmers to be relieved of charges for meat inspection at freezing works. More favourable interest rates and repayment terms for meat companies when borrowing to improve hygiene facilities. The three recommendations were now being considered by the Cabinet, said Sir John Ormond.