BOBBY CALF.

Horowhenua Chronicle, 17 July 1937, Page 8

BOBBY CALF.

EXPORT 'VALUES.* In an interview regarding tlie value of this product, Mr. W. A. Phillips, chairman of Directors of the New Zealand Co-operative Pig Marketing Association, Limited, stated, inter alia: “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. I am, therefore, pleased/’ said Mr, Phillips, “to have the opportunity of clarifying the position by stating the following facts:—The average live weight of calves slaughtered in the Auckland Province approximates 621bs, 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 and is usually sold forward at an upset cife price, with delivery spread much beyond the normal season for collection. The skin from an average weight calf would weigh approximately 4£lbs, and is usually sold green, on 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 ist 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 t>e met: Overseas freight on meat Is 3d; killing and other works’ charges to f.O.b. 3s Id; marine insurance and export selling commission 3d; a total of 4s 7d. This leaves a nett, 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. “Finally,” said Mr. Phillips, “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' does not apply to the skin' market, in which substantial fluctuations have occurred. The demand for bobby veal and offal is mainly from England, while that for skins is international in scope, fashions j playing a big part in the competition j for the product and the resultant price offered.” v ' \