Currency move affects beef

Press, Volume CXV, Issue 33981, 23 October 1975, Page 11

Currency move affects beef

One of the main reasons for the improvement in realisations from | beef was that the American dollar had appreciated 26 per cent in relation to the New Zealand dollar since the beginning of June, an economist of the Meat Board, Mr G. T. Harrison, said.

i This, with increased market prices, had helped the (Situation quite dramaticaly. ‘ It meant that the “suppleI mentary payments situation” had brightened considerably, Mr Harrison said, I referring to payments to supplement market realisations, bringing farmers returns up to the level guaranteed by the Meat Board. However, the schedule to farmers was still being supplemented, and the market had declined a little in the last week. New Zealand had virtually shipped its quota of beef to the United States for this year and beef now being acquired in New Zealand would probably have to be stored until next year, incurring storage in the process. Factors affecting future ■ returns might include increases in freight rates and (processing charges. Charges up i The Hawke’s Bay Farm- ! ers’ Meat Company, Ltd. has i announced increases in processing charges which came ; into force yesterday. It is j believed to be the first com-

pany in the country to do so. The charge for processing lambs has been increased about five per cent, or twelve cents per head. The increase for a sheep is sixteen cents, and for cattle from $1 to $1.50 per head. The increases are understood to be because of rises in wage and material costs. It is believed that companies in Canterbury have not so far moved to increase their charges