Company and board prices compared

Press, 10 January 1986, Page 18

Company and board prices compared

Sheep farmers have to aim for the YX grade of lamb to gain any advantage from the meat company schedule over the prices offered in the 90 per cent Meat Board schedule, the chairman of the meat and wool section of North Canterbury Federated Farmers, Mr Kelvin Coe, has pointed out. Despite claims by the chairman of the Meat Industry Association, Mr Joe Ryan, that the new schedule contained returns equivalent to the previous Meat Board values, Mr Coe believes there are more minuses than pluses for farmers. He has multiplied out the two schedules at average carcase weights by grade, comparing the meat company one with the 90 per cent board schedule and a 100 per cent board schedule. The first comparison column shows either parity or slight gains for the farmer in only five grades, PM, YL, YM, YX and Alpha. Admittedly these are the most popular grades, said Mr Coe, but only the YX and Alpha prices show any worth-while increase on the board’s 90 per cent schedule. Alphas are probably a thing of the past for most farmers this season, he said, and the YX takes considerable effort and good conditions to achieve.

“On the other hand, the companies have really

penalised the trimmers, over-fats and cutters, even though markets have been developed for these lambs,” said Mr Coe. , ,

“The companies know that the farmers understand the need to cut out fat and they are taking advantage of this understanding to heavily discount these fatter grades. “But as a public relations exercise the hew schedule is a disaster.”

The chairman of the Meat Board, Mr Adam Begg, recently gave assurances that above-schedule payments would be made to producers when the board’s grade pools were finalised. Mr Coe said he had also been assured by board members that the staff were confident that returns above the 90 per cent schedule would be gathered and dispersed to farmers.

“So when the new company schedule is compared • with a 100 per cent board ; schedule, it" is plain to see that farmers’ returns have . been significantly reduced.

“And yet the market conditions and the value of the New Zealand dollar have not changed markedly.” .

The table on which Mr , Coe based his comparisons is reproduced here. The , gross (ex-scales) values for , average weights of lambs in ; each grade are bare-meat , values only: