ILL-EFFECT ON ECONOMY OF N.Z.— MEAT PRODUCERS WARNED: EARLY PASSING OF PEAK PRICES

Greymouth Evening Star, 2 September 1949, Page 5

ILL-EFFECT ON ECONOMY OF N.Z.— MEAT PRODUCERS WARNED: EARLY PASSING OF PEAK PRICES

WELLINGTON, This Day (P. A.).—Meat producers were warned of the effects of the probable early passing of peak export prices by the chairman of the New Zealand Meat Producers’ Board, Mr G. H. Grigg, at the annual meeting of the board today. New Zealand, or any other country, could not have a sound national economy’ if production costs continued to rise while prices for its export products fell, he said. The time might not be far distant when producers would have to draw upon their reserves. They appeared to have had the last price increase for export meat for some time.

“With the current cost of production trends in mind, I am not at all happy regarding the possibility of having to use our reserve funds in the immediate future,” added Mr Grigg. “If these trends continue, we may be forced into the position of using our reserves, not only for the purpose of cushioning a fall in prices but also to bolster up our costs of production. This could lead to the serious position of overseas prices being considerably reduced and our reserves being depleted, with our costs still on the inflated post-war plane. ■ Mr Grigg said a similar position had arisen in the United Kingdom and steps were being taken to correct it before it got out of hand. He hoped

the New Zealand Government wou.c not close its eyes to the seriom: symptoms already showing. < The electoral committee of .the board today passed a> resolution expressing concern over any plan to nationalise the wholesale distribution of meat in the United Kingdom. “The reputation New Zealand meat has gained for grade and quality should not be lightly sacrificed,” the resolution stated.