‘Realistic’ return for sheepmeat sought

Press, 11 January 1986, Page 25

‘Realistic’ return for sheepmeat sought

PA Wellington Meat companies should offer a realistic return for sheepmeat if they want to attract stock into the freezing works, says the chairman of Federated Farmers’ Dominion meat and wool section, Mr Bruce Anderson. He was commenting on company concerns at the reduction in throughput. “Under the present circumstances farmers must endeavour to make as much profit per stock unit as possible,” Mr Anderson said. “The favourable growing season in many parts of New Zealand is allowing farmers to produce heavy animals which the market requires and which will give the farmers a greater return.

“On one hand the companies say farmers should

be sending lambs to slaughter. On the other hand the prices they offer encourage farmers to retain and grow their lambs.

“The schedule is significantly less than offered by the Meat Board despite a substantial devaluation in the New Zealand dollar.” Mr Anderson said that meat companies had previously argued that farmers would be best served by competitive enterprise. But the only enterprise shown by the companies was to drop the meat schedule. “I hope that the Minister of Overseas Trade and Marketing notes the impact the change in meat marketing is having on farmer returns,” he said.

“I am concerned that the companies have already

slipped into their inefficient habits of pre-1982 when everything was lumped into one price without identification of the real costs and returns. “For example, companies refuse to identify by-product returns. Farmers expect that farmer-controlled companies will show some initiative and leadership to ensure the necessary changes are made. “It is a ludicrous situation whereby the farmer will get about the same return for his lambs as the processor will get for killing and freezing the animals.”

The companies would also retain profits from marketing products and it seemed the farmers was “taking the risk and the companies the profit”, he said.