Meat works charges

Press, 2 March 1981, Page 16

Meat works charges

Sir, — Recently I had a line of lambs slaughtered at the C.F.M. Belfast works. I am well aware that all killing and processing charges are met by the farmer, but I wonder how many farmers know that they also pay for the woolpacks that the companies put the processed wool in. To add insult to injury C.F.M. paid me 82 cents for a pelt with a kilogram of wool on it. This is complete daylight robbery as a kilogram of lamb’s wool is bringing around 240 cents at auction. I feel it is high time producers were given a fair deal; farming can no longer stand this type of rip-off and I think that the Wool Board should .consider putting a floor price on this valuable commodity. The freezing companies are exploiting the board’s non-activity.—Yours, CtC * ' ’ J. W. ANDERSON. Darfield. February 19, 1981. (Mr D. Morten, managing director of the Canterbury Frozen Meat Company, Ltd, replies; “Skin schedules are established on ■ a weekly, basis by the meat operators after consideration of market trends and with the knowledge of processing costs. This is a composite schedule, including both wool and pelt. After purchase the company must ' process and pack the slipe wool and pickled pelts incurring' labour and material costs plus finance, insurance and storage charges... On average these charges have to be borne by the company for about'6o days.. If Mr Anderson does not like the .above.system he has two options: he can “pool his meat and skins,” sharing the risks,’and any profits or losses of the market place in exactly the same way as the ' company does, or he can shear - his. lambs, prior to slaughter. ’ (also incurring costs). His. comparison of a gross selling price of 240 cents at auction must be reduced by shearing, baling costs, transport, storage, commission on sale, and finance costs before it can be equated with a cash price on the day of kill. Finally, even the most generously, funded floor price scheme would be strained by the dramatic change in the market price for pelts which last year sold for $6O-$7O per dozen for the; regular grade, the equivalent prices this year

being in the range of $l5$25, with some of the poorer grades being virtually unsaleable.”)