LAMB DOWN AGAIN Meat Board’s chairman to see Minister

Press, Volume CXIV, Issue 33693, 16 November 1974, Page 2

LAMB DOWN AGAIN Meat Board’s chairman to see Minister

The possibility of Meat Board intervention in the lamb market came much closer yesterday when meat exporters dropped their prices to Canterbury’ producers for most lamb meat 22c to 5.9 c a kilogram.

But even at these levels it cannot be assumed that the board will intervene, although its chairman (Mr C. Hilgendorf) said yesterday that he would meet the Minister of Agriculture (Mr Moyle) on Monday morning to discuss “how the board’s purchases of lambs are to be funded in the event of its intervening in the market.”

A reduction in schedule eces had been expected :ause lambs bought from now on are unlikely to reach Britain until the new year, when they will incur a higher tariff because the European Economic Community external tariff on lamb meat entering Britain from January 1 will rise a further 4 per cent. Lower yet? But it seems that the reductions also are a reflection of prices expected for various categories of meat in Britain. According to a spokesman for the meat industry, the prices in some cases do not yet fully reflect forecasts, and there might well be some further adjustments. The standard 13kg to 16kg prime lambs have been reduced in price for their meat content 2.6 c a kg. This means that a 13.5 kg (301 b lamb with a wool pull ot 0.75 kg is now worth $5.74 at the works — a drop of 35c. There has been no change in skin payments. The 2.6 c a kg reduction also applies to fair average quality lambs of the same weight range. Other falls Light-weight g.a.q. or prime, and also f-a.q. lambs from Bkg to 12.5 kg, have been dropped 2.2 c a kilogram. But steeper reductions have been applied to heavier lambs. G.a.q. 16.5 kg to 19kg lambs are down 5.9 c a kilogram; 19.5 kg to 25.5 kg lambs are back 5.7 c, and this reduction has also been applied to La.q. 16.5 kg and 25.5 kg lambs. f Alphas have been reduced only o.Bc, and overfats 1.5 c; no alteration has been made for Omegas and export cutters In the North Island, prices have been reduced 4c a kilogram for all lambs, except cutters. Risk shared When the Meat Board Intervened in the lamb market in the 1971-72 season, the then National Government agreed to stand twothirds of any loss incurred in the exercise. This was tied to the board’s contributing to the sheep retention incentive grant scheme launched at the time to help maintain stock numbers in the industry — slsm of the s4sm needed to finance this scheme was provided from the meat industry reserve account. The board acquired 12.5 m lambs in the 1971-72 season and these eventually were sold for a profit of about sBm. This surplus, by agreement of the Government, was paid into a trust account within the Public Account, which among other things may be used to underwrite any deficits arising from the board’s intervention to support meat prices by the purchase of meat. The meat industry reserve account, which would be used in any intervention operation, stood recently at

more than s9om, but not all of this is readily available for such an exercise. Beef, too Meat exporters yesterday also announced a reduction of 3c a kilogram in prices for chiller, g.a.q and f.a.q. ox and heifer beef and g-a.q. I and g.a.q. cow beef. This reflects the continuing weak outlook for beef — markets everywhere are oversupplied and there is no interest in the product. The new prices for lamb meat, which come into force on Monday, are:— G.A.Q.—B to 12.5 kg, 38. Se a kg; 13 to 16kg, 36.6 c; 15.5 to 19 kg. 32.4 c; 195 to 25.5 kg. 29.1 c. F.A.Q.—B to 12.5 kg. 38.6 c; 13 to 16kg. 36.6 c; 16.5 to 25.5 kg, 28.7 c. Omega.—B to 12.5 kg, 34.8 c; 13 to 16kg. 33.2 c. Alpha.—33.7c. Export Cutter.—No. 1, up to 12.5 kg, 28.6; No. 1. over 13kg, 32.5 c; No. 2. all weights. 19.3 c. Overfats.—2sc. Unexportable.—2oc.