EXPORT VALUES

Evening Post, Volume CXXIV, Issue 14, 16 July 1937, Page 18

EXPORT VALUES

The export values of bobby calves were referred to by Mr. W. A. Phillips, chairman of directors of the New Zealand; Co-operative Pig Marketing Association, .Ltd., in a statement to "The Post."

"Owing mainly to the competitive factors in this trade, which at times — as was recently the case in certain districts in the Waikato —passed beyond the control of the exporters themselves, it is not surprising that farmers are confused as to the real value of this product," said Mr. Phillips. "I am, therefore, pleased to have the opportunity of clarifying the position by stating the following facts:—

"The average live weight of calves slaughtered in the Auckland Province approximate 621b, of which, after skinning, boning, and trimming, roughly only 25 per cent, in weight is retained as exportable veal. The veal is exported, frozen, in bags, and is usuallysold forward at an upset c.i.f.e. price, with delivery spread much beyond the normal season for collection. The skin j from an average weight calf would weigh approximately 4Jlb, and 5s usually sold green, oh (freezing works' weight and grade. ' The offal, consisting of hearts, kidneys, livers; etc., is exported, frozen, in containers, and is sold accordingly. The veil, which is the only remaining by-product of value, is mainly used in New Zealand for the manufacture of rennet.

"The current, delivered at port works, export values of these products, from the average weight of calf, is approximately as follows: Boned veal. ss; skin. 5s 6d; offal, Is 2d; exchange (on meat and'offal), Is 4d; total gross value, 13s. Out of this the following charges have to be met: Overseas freight on meat, Is 3d: killing and other works' charges to f.0.b., 3s Id; marine insurance and export selling commission, 3d: a total of 4s Yd.

"This leaves a net all-sunk value to the exporter of approximately 8s sd. Therefore, to arrive at the price payable to the farmer, it is necessary to provide for all costs of handling the live product from farm gate to port works. These are: Cartage to rail, at present Is 3d; agent's commission and railage, varying from 3d to is 3d according to distance from works. These are direct charges only, and make no allowance for indirect losses, such as that on calves rejected for export; excessive railage costs which occur on both sides of the peak period; additional storage costs on veal to effect shipments which buyers require spread much beyond the currency of the slaughtering, season, and in consequence, yet another indirect loss is occasioned by the abnormal shrinkage in weight of veal packed. All of these factors are common to the trade and must, therefore, be provided for.

"Filially, I wish to make it clear that my comments apply to current values only, which are based on the most favourable port works' charges. In saying this, however, it is desirable to mention that although over the last two. years the average export value of the veal and offal has varied very little, this docs not apply to the skin market, in which substantial fluctuations have occurred. The demand for bobby veal and ofl'al is mainly from England, while that for skins is international in scope, fashions playing a big part in the competition for the product and the resultant price offered."