MEAT REQUISITION TERMS

New Zealand Herald, Volume LXXVI, Issue 23489, 28 October 1939, Page 10

MEAT REQUISITION TERMS

Many details will have to be defined before farmers and the meat industry can assess the bargain made by Mr. Nash with the British Government for the purchase of New Zealand's meat export surplus for the next twelve months. The prices agreed on for the meat itself appear to be satisfactory. Mr. Nash speaks of them as being slightly better than last year's values. Their meaning to the farmer will depend, however, on the' rate of charges from farm to f.o.b. The full effect is further obscured by the fact that prices of hides, skins, pelts and other by-products have still to be determined. It may be hoped that finality will quickly be reached on these various matters so that the farmer can estimate where he is likely to stand. It is certainly a solid advantage, conferred not by Mr. Nash, but by war conditions, that the sheepfarmer should know early in the season what his produce will realise. Unfortunately this certainty and stability on the score of incomings is not matched on that of outgoings. While pinning down the producer to fixed prices, the Government shows no disposition and has no effective policy for stabilising costs. The arrangement is one-sided. Farmers cannot be blamed for reflecting that, if prices are to be slightly better for meat, costs continue to rise steeply and that most of the advances are due to the Government's policy. Mr. Nash makes a point of the fact that the meat will be paid for in sterling at f.o.b. and no doubt such prompt payment should ease the sterling credits stringency, and perhaps import restrictions as well. But in insisting on a cash bargain with Britain to help him out of self-made financial embarrassments, Mr. Nash may have had to abate the price the farmer will receive. Cut prices for cash is an old trading principle. One unadulterated benefit, due to the war and not to Mr. Nash, is the clearance from store of last season's surplus meat, which had threatened to depress the whole trade. The quantity is considerable, being estimated at 1,000,000 freight carcases of 601b., or between 25,000 and 27,000 tons. Realisation of what had been a dead surplus will tiling | a welcome reinforcement to New Zealand's sterling funds..