NEW WHOLESALE MEAT ORDER NOT REFLECTED AT AUCTION

Otago Daily Times, Issue 26996, 3 February 1949, Page 4

NEW WHOLESALE MEAT ORDER NOT REFLECTED AT AUCTION

The new wholesale price order for meat, which came into effect on Tuesday, made no appreciable difference to the price of fat cattle at the Burnside auction sale yesterday. Fat cattle, lambs, and pigs all brought near late rates, and butchers had to pay from 2s 6d to 5s above the export schedule to obtain their requirements of beef. The yardings in all sections at Burnside were below average yesterday, but both sheep and store cattle had quiet sales, the latter suffering the greater recession in values. The reduced prices in these sections, however, wpre not attributed by members of the meat trade wholly to the operation of the new wholesale price, but also to seasonal conditions.

Recently, butchers have tried' to reduce the prices at stock sales to export schedule rates, but the small yarding of fat cattle yesterday resulted in a good sale. Prices were higher towards the end than they were at the start. Butchers told the Daily Times that in some cases they had effected reductions on former late rates, but in others they had to pay up to 60s a 1001 b—estimated “on the hoof”—to obtain extra choice lots, whereas the export schedule is about 55s a 1001 b. The new wholesale price order sets the price of beef at 51s 6d a 1001 b, dead, on the hook, but this does not apply to live stock sold at auction. The new price order was claimed by some traders to be designed to keep the operations of wholesalers within export rates. Wholesalers operating at Burnside yesterday were said to have kept within them for fat cattle, sheep and lambs. Fat lambs sold well yesterday. Sheep, however, had a quiet sale following a large yarding last week, and the price of wethers dropped about 4s a head, while ewes showed a greater decline. In spite of a small yarding, store cattle were also cheaper. Butchers operating yesterday welcomed the small advances made towards reaching parity in prices with the butchers who buy their meat “dead on the hooks” from the export houses. It is possible that prices at auction will decline further with the larger yardings that can be expected at this time of the year. It is impossible yet, however, to judge whether the butchers who buy at auction will in future be able to compete with- the 40 per cent, who deal with export houses. If not, they might want to purchase from wholesalers. The question would then arise whether an approach on these lines would i&cceed.