Views differ on beef price

Press, 17 June 1980, Page 4

Views differ on beef price

PA Wellington The Meat Board will have to pay nearly $2 million to farmers for the week ended May 3 to maintain guaranteed price levels for beef exports. < The board has had to subsidise prices , since April 14, but it says prices are now rising .in the United States and that it expects its payments for the week ended May 10 to drop considerably. “New Zealand cow beef prices in the United States during the week have lifted about 8.5 United States cents per lb c.i.f. Even ,so, it could be some weeks before market prices have' risen sufficiently to. ensure exporters are able to sup-. port fully minimum price for all classes of cattle in the beef , schedule payments.” But Borthwick’s marketing manager, Mr B. Freeman, has rejected suggestions that the North American beef slump has lifted.

“The market la the United States has lifted this week but exporters are still losing money on their beef trading,” he said.

Reports that the market rise signalled the end Of the slump were wrong. -; .“The market has firmed because of a shortfall hi pork supplies,. which/,, has been; caused by ’ a reduction in the weekly :hog kill; Hog farmers are; busy harvesting their grain, and once the harvest : is over, the pork supplies will return to normal,” Mr Freeiman said. . ' '-

•■ ■; “I' expect■ thei-beefemar-ket to remain depressed until the end of :the season : and the. Meat Board to have to continue paying out.” ■ . , • .

Mr Freeman said that the latest figures from the United States Department of Agriculture showed thgt beef consumption -was down two or three pounds a ..person while pork consumption was up about 51b a person. K-