Payment choice for export meat producers

Press, 13 December 1985, Page 2

Payment choice for export meat producers

PA Wellington Export meat producers will be offered a choice of stock payment systems after December 21 when the private sector resumes responsibility for sheepmeat marketing, said the Meat Industry Association yesterday Each farmer will have the option of accepting either the schedule as full and final payment for stock or an advance payment for stock which would enter a pool from which any favourable or adverse results would be shared at the end of the season. The chairman of the association, Mr J. M. Ryan, said that each of these options would be offered by all companies making up the five marketing groups. He said that a schedule (the assessment of anticipated average prices from all markets for each grade of stock) would be determined by each of the groups each week, but this was unlikely to result in five published schedules. “After each group has determined its schedule in competition, based on export costings and product flows, I would expect that the published schedule would be that pitched at the highest level. Other groups if they want stock will have to match it,” he said. Mr Ryan said he did not

think individual group assessments would vary materially, as the nature of the new system of marketing within five groups imposed a large degree of discipline. Each group would be working within the context of an agreed global marketing strategy. “Acceptance of and commitment to the group concept has entailed a certain amount of sacrifice by companies in giving up positions which previously they had regarded as a right,” he said. “I must caution farmers, however, against expecting any dramatic schedule change after December 21.

“The board will still have substantial volumes of product in the marketplace and we do not expect to have a contract with Iran until early next year. Therefore I would not expect any major change in values in the short term.”

Mr Ryan said products had been slow to come through this year as farmers had held stock in the hope of achieving heavier weights. However, he cautioned fanners of the risk that many of these lambs could be downgraded to the overfat category when offered for slaughter in the new year.