Farmers may get more for beef soon

Press, Volume CXV, Issue 33774, 21 February 1975, Page 1

Farmers may get more for beef soon

Panners are likely to receive higher prices for cattle killed in the remainder of the present export season.

Phe Meat Board is recommending this course to the Government.

Lately’ beef kills at freezing works have been falling off, presumably because farmers are holding back stock to take advantage of the much higher rates which will apply from the start of the next export killing season on ■ October I, under the Meat Board’s guaranteed minimum price scheme.

For the categories of beef in which the board has made known its guarantees for next season, prices in October will be from 70 to 100 per cent higher than those ruling now under a schedule which is also guaranteed by the board.

It has been hinted that the present low throughput at works could lead to increases in processing costs, and in due course to increases in killing charges to producers. Local trade Still another effect of the situation is also foreseen in a report just issued by the economics division of the Ministry of Agriculture and Fisheries. It says that there are fears that the flow of cattle on to the local market will be disrupted from June, or even earlier, as farmers retain stock to qualify for higher prices in October, and if this happens local market retail ( prices for beef are likely to i rise about the middle of the; year. Retail effect However, an early increase in prices paid to farmers, as is now being suggested, will also presumably result in an increase in retail prices as the local trade has to pay more to secure its share of beef. This is, of course, unless the Government takes some action to hold beef prices to the consumer. According to the Press Association, after consider-

ing the beef situation at a special meeting today the board issued a statement saying it had agreed to certain steps, but that the implementation of these would require consultation with the Government. “The Government will be informed of the board’s proposals, and it is hoped an agreement will be reached and a statement released within the next week.”

Yesterday’s statement said that during the meeting the

board reaffirmed its previous decision to maintain the schedule prices for export beef previously announced and to apply from October 1. It also reaffirmed its decision of last week to make any increase in beef prices, which may be negotiated this season, payable retrospectively to February 11. “Consequently, should there be an adjustment in the schedule I price for beef, producers will have their payments adjusted to that date,” the board said.