EXPORT OF MEAT

Gisborne Herald, Volume LXVI, Issue 19994, 20 July 1939, Page 4

EXPORT OF MEAT

CONTROL OF PRODUCTION PROPOSED EWE SUBSIDY LIGHTER CARCASES URGED SHEEPOWNERS’ VIEWPOINT (Special te the Herald.) WELLINGTON, this day. Measures to counteract the effect of the import restrictions placed by the United Kingdom on the import of mutton from New Zealand were discussed by (Mr. H. D. Acland in his presidential address to the annual meeting of the New Zealand Sheepowners’ 'Federation to-day.

'Mr. Acland reviewed proposals that had been made, mentioning the proposed levy on mutton and lamb to subsidise farmers with ewes that would now he unexporta'ble and also a suggestion that the weights of both lamb and mutton carcases should be decreased by lib on the former and 2Lb on the latter for the purpose of getting within the quota.

"Unless trading conditions and Government policies alter in consuming countries,” Mr. Acland said, "any prospect of the future expansion of our meat export trade will disappear and some form of control of production for export, as well as of export itself, may have to be adopted.

"There is every prospect of our having about 2G.000 tons of meat to dispose of above the quota allowed us into the British market for the year ending December 31. This is equal to the whole of the ewes killed for export this season. The number of ewes killed is roughly 1,000.000, .and the skins will average in value 2s 6d, while the carcase is estimated to be worth 2s for meat meal or other use. Subsidy Proposals “It has (been suggested that a price might 'be fixed for ewes at. say, 10s. This would mean that approximately .€300,000 would be needed to cover the difference between the 10s per head price fixed for the whole of the 1,000,000 ewes and the 4s 6d represented in the value of the skin and carcase. “In view of the need for the maintenance of the supply of breeding ewes from the hill country to the farmer for lamb fattening, a (Straight-out subsidy under producer control might be justified, at least for this coming year, which may ,be one of adjustment to the altered conditions.

“Failing this, it is calculated that a levy of 5-32 cl per lb. on all wethers and lambs killed would provide apr proximately £312,000. which would meet the position financially, but might result in correspondingly lower prices bping paid for store lambs by farmers fattening for export. “If an arrangement can be made with the British Government to purchase and store, say, 500,000 carcases of ewes as an emergency supply in case of war needs, with an assurance that this stored supply would not be dumped on the market in competition with our next year’s output, the position would be relieved at least temporarily, although it is doubtful, if taking the long view, any lasting benefit would result from attempts to v

spread the loss from the marketing of any particular product over other classes of produce in the same industry. Carcase Weights “It has been suggested that the proposal which was discussed as probably being necessary to meet the position in 1932, should our negotia* tions with the British Government at Ottawa have resulted in a heavy cut in quantities of our meat into Britain, nay now be considered. That is. that a reduced weight per carcase should be insisted on for export, sufficient to meet the reduction in total tonnage. “For instance, if the average carcase weight of our lambs next season was reduced from this season’s average of 331 b to 321 b, on 9,500,000 carcases, this would represent a total saving in weight of lamb shipped of roughly 4129 tons, the value at 7d a lb equalling £270,000 approximately. “Last season’s output of wether carcases, which is the largest since the 1931-32 season, is 1,416,074, with an average weight of 53, l-31b. “If the average wether weights could be reduced by, say, 21b per carcase, this will show a saving in weight of roughly 1264 tons, with an average value at 4d per lb of £47,189. "The output for ewes last season was, 1,126,232 carcases, averaging 53.11 b, or a total weight of 26,474 tons, which at 3d per lb would mean £741,272. “Robbing Peter” “From this it will be seen that if reduction of lib in weight per carcase of lamb killed, and 21b weight per carcase of wethers were made, this would provide £317,200, or less than half the value of our surplus for export under . the quota, taking the surplus tonnage of ewes killed, of 26.474 tons at 3d per lb. No solution to the problem appears to offer from this direction, and in any case we should merely be robbing Peter to pay Paul. "It would appear to be an open question whether, taking l all factors into account, it would not be better to meet the market, rather than take the risk of upsetting values of store lambs, and fat lambs and wethers by any system of levy on their export value at tA is stage. Past experience has shown that temporary expedients to meet altered conditions in trade hnv e more or less failed to accomplish the object aimed at taking the long view.”