New blow to producers

Press, 21 November 1978, Page 1

New blow to producers

More bad news hit sheepfarmers yesterday. The provincial president of North Canterbury Federated Farmers, Mr G. E. Rennie, said that every 1 per cent increase in ages agreed to by the freezing companies would cause an additional processing charge of 5c per lamb. Mr Rennie spoke after a meeting in Christchurch between the executive of the North Canterbury federation and the management and executives of freezing companies in the area.

When talks between the meat workers and companies broke down last week, the workers were seeking a wage increase of 17.5 per cent and the employers had offered 15 per cent. Mr Rennie said that there had to be restraint in the negotiations, and recognition of what farmers could afford to pay. Members of the federation in his district had been quick to express concern about the “excessive in-

crease” in processing charges, which came into effect yesterday, as well as the reductions in schedule prices for lamb. The freezing companies were adamant that every added cost could be passed on only through processing charges, while farmers felt that shareholders should take some responsibility for servicing loans for capita] W'orks and expansion, Mr Rennie said. New Zealand farmers ranked among the most efficient meat producers in

the world today, but had no control over the efficiency of servicing beyond the farm gate. Mr Rennie said that farmers’ attitudes had hardened, and if there was no positive step towards an immediate settlement of the national aw’ard, freezing companies should revert to their original offer. “The meat industry is at the crossroads, and only effective marketing and high efficiency can save us from ultimate collapse,” he said.