‘Shipping oil up 270 p.c.'

Press, Volume CXIV, Issue 33438, 21 January 1974, Page 14

‘Shipping oil up 270 p.c.'

The Meat Board is concerned that the price of oil for shipping seems to have increased far more than other oil fuels, and about the effect of this on lhe export of Zealand meat.

Grave concern at the “stag-1 gering” rise in shipping costs was expressed 'at thel week-end by the chairman : of the board (Mr C. Hilgen- : dorf), in a statement issued' in Wellington. He was commenting on the latest increases in oil freight surcharges due to take effect early next month. These include 16.44 per cent to the United Kingdom and Europe, 25.75 per cent to the West Indies, 12.48 per cent to the east coast of North America, and 12 per I cent to the west coast of j North America. Various increases also apply to other trade routes. “The effect of such extra shipping costs becomes alarming when it is realised that our producers normally pay a total meat freight bill of about sloom a year and

that they will now have to forego several extra million dollars in income to meet the latest increases in freight costs.” Last week Mr Hilgendorf said that the board would not hesitate to take over the marketing of lamb again, as it had done two years ago, if it felt that the prices being paid by exporters were unrealistic. Asked to comment yesterday on the action of meat exporters in announcing on Friday a further reduction in the price to farmers of I.Bc per kilogram for all lamb meat for export because of increased freight charges, Mr Hilgendorf said “It is true that the schedule had gone down again, but at least there is an excuse for this in the very big increase in bunkering charges.” “The increase in the price of oil to shipping companies is 270 per cent. “The board has already drawn the attention of the Government to this quite spectacular increase in the price of bunkering oil by the oil companies when the price of other oils has increased very much less, if at all. “Although it is true that a large amount of bunkering by shipping companies is done outside New Zealand, the board nevertheless feels that the Government should be able to have some influence on oil companies.” The latest reduction in the price of export lamb meat to the farmer means that since the week beginning December 10 prices have now dropped by between 7.3 c and 12.2 c per kilogram, with the biggest decline being for the Omega light-weight lamb. Lamb meat prices are now:— Prime: 8 to 12.5 kilograms, 56.7 c per kilogram; 13 to 16 kilograms, 56.7 c; 16.5 to 19 kilograms, 54.8 c; 19.5 to 25.5 kilograms, 51.3 c. Fair average quality: 8 to 12 kilograms, 53.2 c; 13 to 16 kilograms, 55.7 c; 16.5 to 25.5 kilograms, 50.9 c. Omega: 8 to 12.5 kilograms, 52.7 c; 13 to 16 kilograms, 50.7 c. Alpha: 43.3 c. Export cutter: No. 1, up to 12.5 kilograms. 47.5 c; No. 1, over 13 kilograms, 51.9 c; No. 2, all weights, 38.7 c. Overfat lambs: 40.1 c. Unexportable lamb: 25c. Rams: 12c.

Skin payments are unchanged and range, in the case of woolly lambs, from 115 c for a lamb with wool pull of 0.45 kilograms to 264 c for a lamb with a pull of 1.5 kilograms, and in the case of shorn lambs from 77c for a lamb with a pull of 0.20 kilograms to 183 c for a lamb with a pull of one kilogram.