Some beef prices have risen to skim-off level

Press, 26 June 1978, Page 22

Some beef prices have risen to skim-off level

t The beef market has “ turned a full circle. ; At the end of the last I export killing season the I beef stabilisation or buffer I account was almost SISM I in debit as a result of supI porting the weak beef I market in recent seasons. | The improvement in the ’ market this season, in particular in the United States and the relaxing of import quotas there has resulted in prices to producers rising considerably. Now 0.781 per cent of their returns on manufac-

turing category beef are being skimmed off into the stablisation account. The price for the benchmark grade of manufacturing beef, on which the skim-off is based, has increased this week to 64c per kg. This is the manufacturing cow beef grade killing out at 140.5 kg and over. The trigger price for this is 63c. The amount of producers’ returns to be skimmed off cow grade and other manufacturing beef is calculated by expressing a

half of the difference between the schedule price and the trigger price .as a percentage of the schedule price. The percentage deduction applies to Li and L2 ox and heifer and also to manufacturing ox, heifer and cow and bull beef. The benchmark grade for prime beef is the Pl steer killing out at 220.5 to 270 kg and the trigger price in this case is 83c per kg. The present schedule price in Canterbury for ■■ this grade is 79c.

The new minimum prices which come into force next season under the Government’s scheme to supplement, where necessary, prices received by producers are 70c for the manufacturing beef benchmark grade and 80c for the prime benchmark grade.