MEAT POOL ACCOUNT.

Kaikoura Star, Volume LXIV, Issue 59, 31 July 1944, Page 2

MEAT POOL ACCOUNT.

ESTIMATED SURPLUS 3J MILLIONS According to the annual report of the New Zealand Meat Producers’ Board, it is probable that when all the meat killings to the end of the current season are finally sold, the Meat. Pool Account will show a surplus of not less than £3,500,000. If is pointed out, however, that it is very difficult to prepare estimates at the present stage.

The Meat Pool Account was created for the main purpose of providing a. fund to sustain the value of ewe mutton at a reasonable level, but this necessity, states the Board’s report, has now entirely disappeared because all ewe mutton is shipped in the form cf frozen carcases, in accordance with the wishes of the United Kingdom Mimstry of Food. Particulars of the Meat Pod Ac-count have been given in previous annual reports, but its development is described in the latest statement, rhe surplus shown to July 31, 1943, was £1,883,547, but the report points out that this represented the position only in respect to killings sold up to July 31, 1943, and that when the complete figures for that season became available the credit in respect of the 194243 season will be considerably over £2,000,000. The current season’s operations should bring the total surplus in the Pool Account, as already indicated, to £3,500,000.

The original arrangement provided for an allowance of half per cent, on sales, for administration and general expenses, but following representations by the Meat Board this was reduced to three-eighths per cent, as October 1, 1943. The Meat Pool Account to July 31, 1943, shows several important items of expenditure, viz.: Loss on 1941-42 season’s ewe mutton after July 31, 1942, £539,351; loss on 1942-43 season’s ewe mutton killed up to July 31, 1943, £537,580; amount written off capital cost of emergency cool stores, canning plant and buildings (one-third of estimated cost of £575,000), £191,666. The following are particulars of the various increases in prices which have been paid for frozen meat by the United Kingdom Government to the New Zealand Government since the original f.o.b. sterling prices were fixed in 1939: From October 1, 1941, inciease per Ig (sterling), Beef: 3-8 d; wether mutton, id; ewe mutton, id; lamb, 3-Sd; porkers, id; baconers, 3-8 d; offals, beef, lamb 3-8 d; mutton, pork, id. From October 1, 1942: Beef, 3-16 d; veal, 3-16 d; beef and veal offal, B-ifid; porkers, baconers, choppers, pork offal, 5 per cent, increase.

From October 1, 1943: wether and ewe mutton l/2d.

The increase from October 1, 1941, goes into the Meat Pool Account. The destination of the increase which commenced from October 1, 1942, is at present under discussion between the Board and the Government. The last increase, namely, frony October 1, 1943, is credited to the Meat Stabilisation Account, which was provided for in the agreement made between the Farmers’ Federation and the Government relating to Farm Products Stabilisation Accounts.

The report explains that the surplus of £368,897 on tallow sales credited to the Meat Pool Account to July 31, 1943, represented the difference between the purchase prices and the sale prices, which difference approximated £8 (N.Z. currency) per ton.

A credit of £134,591 is shown in the account as surplus on slipe wool. The report states that 10 per cent, of the 15 per cent, increase paid by the United Kingdom Government on slipe wool was reflected in the schedule prices paid to farmers, and the balance of 5 per cent, credited to the Pool Account.