MEAT EXPORTS

Dominion, Volume 32, Issue 72, 17 December 1938, Page 4 (Supplement)

MEAT EXPORTS

Why Lamb At 7|d.?

That the fat lamb schedule should have been lowered by id, this week is rather surprising. This brings first grade 361 b. and under lambs down to 74d lb. It would appear from Smithfield sales of Australian that our lamb is worth Sjd. lb. here, on the day. The current schedule is too low altogether and fattens would have every prospect of doing much better by shipping on their own account. The only justification for the current low' schedule is fear of the future. The price has, to my mind, been unduly lowered to cover any likelihood of loss on that account. The current schedule of 7Jd is below the parity of lamb, valued over the whole of the past three seasons. In no one season has the price averaged so low as to show a loss on a i4d. schedAllowing for the factor of risk, Bd, lb. would appear a fair schedule today. Freezing Company Profits. The accounts published lately of freezing companies’ operations do show that they had a bad run last, season in several cases," and averaged overall their profits were quite modest. Individually, remarkable variations in results were shown. In comparing the season just closed with the previous one, it must be remembered that that was a remarkably good one. What hit the works badly last season was the fall at Home in mutton values, especially on ewes. Averaged over many years, the freezing industry has not made excessive profits, and it has run enormous risks. But at the present moment, it would appear to be hedging too closely on lamb. On. other classes of meats there is no cause for comment. Smithfield Values.

Current Smithfield quotations compared with past ones are as follows: — Lamb: North Island Downs, 361 b. and under, nil; a month ago, nil; two months ago, S l-Bd. A sound indication of the splendid market prevailing is given by realizations of new season’s Victorian lamb, which is selling at 7Jd. for 291 b. to 361 b. This lamb sold last season at a full id. to id- lb. below New Zealand, same weight and grade. Therefore it is today fair to assume that our lamb is worth all” of Bid. lb. The market is therefore to be judged as strong. Wethers: 491 b. to 561 b., 4 l-Bd.; a month ago, 4 3-Bd.; two months ago, .4 7-Bd.; and a yyar ago 5Jd. Ewes: 491 b. to 641 b., 2 5-Bd.; a month ago, 2 id.; two months ago, 2 7-Bd.; and a year ago, 4d. lb. , Qhilled beef: Ox hinds, 1451 b. to 2101 b., OJd.; a month ago, 5 7-Bd.; two months ago, 5Jd.; and a rear ago 5Jd. lb. Both lamb and" chilled beef are selling splendidly, but mutton is very sick; ewes have picked up a little, butwethers have eased no less than id. in just two months. . That wethers are low in value is understandable, seeing that their meat, on Smithfield, is 1 l-Bd. lb. down on a year ago. That equals 5/- on a 541 b. sheep. Ewe mutton is down 1 3-Bd. lb., which on a 641 b. ewe means 7/4 on carcase value. By-products on all meats are returning just about the same values as a year ago. Export Killings. Eor the first two months of this season'the notable feature of export killings is the 40 per cent, drop in lambs, only 303,000 against 604,000 last year. Chilled beef is down 1000 quarters, but frozen is up by 3400 quarters. Wethers were up by 13,000 and ewes by 2500. Last month’s killings were: Lambs, 350,000; wethers, 31,400; ewes, 4700; chiller cattle, 3000 head; and freezer cattle, 1450 head. North Island works dealt with 99 per cent, of the output. As at November 30, stocks in New Zealand and loading on ship were negligible.