Price ceiling on tallow forecast

Press, Volume CXIV, Issue 33447, 31 January 1974, Page 16

Price ceiling on tallow forecast

(New Zealand Press Association) WELLINGTON, January 30. The Government might still be planning to introduce restrictions on the export of tallow and meatmeal, even though the meat reference price scheme proposed last year apparently had not been necessary, the acting chairman of the Dominion meat and wool section of Federated Farmers (Mr M. Loughnan) said today.

“There is something in the air over tallow restrictions,” Mr Loughnan told the New Zealand Press Association. In a statement earlier, he said New Zealand stood to lose millions of dollars in overseas exchange if the Government introduced export restrictions on tallow and meatmeal. He said that at a time when international trade was worsening the Government was apparently considering placing a ceiling on tallow and meatmeal prices. "The export lamb schedule has been declining rapidly in recent weeks, and farmers are gravely concerned that the Government intends to force prices down further,” he said. While the chairman of the Meat Board (Mr C. Hilgendorf) was in London discussing lamb prices, his efforts were being sabotaged Jn New Zealand by the Government, Mr Loughnan said. “A ceiling on local tallow and meatmeal prices must mean that export prices go below what could have been realised, because the overseas buyers will not pay

(much above the local price. I “Interference in tallow land meatmeal prices will jhave unhealthy and unwelcome long-term repercussions on the New Zealand economy,” Mr Loughnan said. Commenting on Mr Loughnan’s remark, the Minister of Agriculture (Mr Moyle) said tonight that it was a question of the possible need to even out the price fluctuations in these products. The price reference scheme was considered last September, when the export prices for meatmeal and tallow were extremely high, adversely affecting the price of such items as eggs, poultry and pigmeat, cooking margarine, and soap. There had been a subsequent decline in the export price, so nothing further had been done, said Mr Moyle. Recently the prices had risen again, and the Government was considering the need to implement the scheme suggested last year. Mr Moyle said he would study the representations he has received from Federated Farmers and other groups.