Further rise in stock processing charges

Press, 21 November 1981, Page 12

Further rise in stock processing charges

Meat companies have increased their processing charges, to take effect from Monday. This is the second increase this export killing season and is largeiy a result of the recent increase of 10 per cent in meat workers’ wages and increases in the wages and salaries of other industry groups. However, companies have also been reviewing other costs and returns bn by-products in the light of information that has become available since charges were raised last month. For the average lamb, the latest increase amounts to about 98c, or slightly more than 9 per cent, and means that since charges were increased in November last year, they have been raised by about $l.BB, or between 19 and 20 per cent.' For the average ewe the further increase is about $l.ll, or slightly more than 8 per cent, bringing the total increase since last season to about $2.25, or between 18 and 19 per cent. Cattle killing charges were not raised last month, but they have now been put up by more than 20 per cent. But farmers who are receiving supplementary mini-

mum price levels for all classes of stock killed for export at present will not notice any change in prices as a result T)f the higher charges. The supplements paid by the Government will rise, probably by about 7c a kilogram for the average lamb and about 11c or so for beef. It will put further away the day when market prices will top supplementary minimum prices and obviate the need for. payments of supplements supported by the taxpayer. To process a lamb killing out at 13kg, and with a kilogram of wool, at a Canterbury or Otago works of Waitaki N.Z. Refrigerating, Ltd, will cost $11)41 from next week. This is up by 98c, or 9.4 per cent, since the rise on October 12 and represents a rise of $l.BB, or 19.7 per cent, on charges ruling last season. For a 19kg sheep with a kilogram of wool the charge has been increased by a further $l.ll, or 8.4 per cent, to $14.37, and this is $2.25, or 18.6 per cent, higher than last season. Waitaki also announced that a prime beef carcase of 250 kg with a 63 per cent

yield would now cost $141.10 to process, a rise of $25.87, or 22.5 per cent. For a boner cow of 160 kg with a yield of 62 per cent the processing charge has risen by $22.98, or 22.8 per cent, to $123.80, and a boner bull of 270 kg, with a yield of 68 per cent, will now cost $144.90 to process, a rise of $25.51, or 21.4 per cent, on last season. The assistant general manager of Canterbury Frozen Meat Company, Mr J. J. Drayton, said that the new rate for processing a 12.8 kg lamb with a kilogram of' wool would be $11.43, a rise of 98c, or 9.4 per cent, on last month's increase, and $l.BB, or 19.68 per cent, up on last season’s charges. The charge for a 20kg ewe with a kilogram, of wool had risen by $l.ll, or 8.3 per cent, since last month to $14.50, which was $2.25, or 18.4 per cent, higher than last season. C.F.M. also quoted a rise of $25, or 22 per cent, for handling a 227 kg prime steer with a 63.3 per cent yield. At the Kaiapoi works of N.C.F. Kaiapoi, Ltd, the manager, Mr K. Pearce, said that from Monday the charge for processing a 13kg lamb with a kilogram of wool

would rise 98c, or 9.2 per cent, to $11.62,. and for a 20kg siieep with a kilogram of wool by $1.12, or 8.3 per cent, to $14.51. Compared with last season this was an increase of $l.BB for the lamb and $2.26 for the sheep. A matter of great concern to the industry is the depressed state of markets for by-products such as lambs’ livers, the returns from which are used to offset production costs. A meat, industry spokesman said yesterday that the stage had now been reached where some companies were no longer saving certain byproducts but were rendering them down. They were no longer economic to recover, taking into account labour and packaging costs. The managing director of Canterbury Frozen Meat Company, Mr Derek Morten, said that the continuing rise in costs and decline in revenues was such that he had to agree with what the Chairman of the Meat Board, Mr A. M. Begg, had said some weeks ago — that the whole industry had to be very careful that it did not price itself out of its markets.