PRICE OF MEAT

Otago Daily Times, Issue 27390, 16 May 1950, Page 4

PRICE OF MEAT

Butchers Opinions REGULATION BY SUPPLY Great Increase Unlikely Butchers do not expect that the price of meat in Dunedin will increase a great deal as a result of possible short yardings of stock at the Burnside market towards the end of the winter. They told the Daily Times yesterday that the return to free auctions and decontrolled prices would eventually lead to lower prices when farmers began to’support auction markets more than they had during the period of control. Retailers said that increased prices for mutton and beef would tend to restrict sales, and this naturally was not desirable. They added, however, that some time would elapse before a return was made to the conditions in the industry which prevailed before controls were instituted. The Daily Times was told that the greatest factor playing the greatest part in the regulation of meat prices in Dunedin was the supply of stock ■received at the Burnside market. If stocks were short, butchers competed with one another for their requirements. This tended to lift prices during the winter season. The period during which high prices were caused by stock shortages varied according to the amount of winter feed available' with which to fatten stock for winter sales. If farmers were unable to hold their stock during the winter by having a reserve of winter feed, they cleared their holdings early. This resulted in scarcities towards the end of the winter. On the other hand, given good winter conditions, v farmers were able to hold their stock longer and so spread the disposal at auction over a longer period. This tended to keep prices from rising to extremes, although farmers naturally wanted adequate recompense for winter fattening. Butchers said that the relations between the farmer and the butcher would probably improve as a_result of the freedom given butchers at auction sales by the lifting of retail price control. The butcher would now probably not suffer from the diversion to the freezing works of stock which normally would be fattened with a view to obtaining better prices. Many butchers have been operating a bulk buying scheme to avoid competing with one another at the sale, and though it is reported that there is a move in the trade to discontinue the practice it is thought likely to continue. Those who favour a cessation of the system contend that it could antagonise the farmers who supply the market and to whom competition means higher returns. Some reduction of prices may resul. from the practice of a number of butchers in Dunedin of buying stock outside the auction mart at the best price and quality possible. This applies only to butchers who have yards near the city in which to hold the stock until it is required, and only a few are in this position. If they are able to buy their stock at more competitive prices than other butchers pay at auction, it is possible that this may introduce the competition required to keep prices as low as possible, consistent with good business practice, in the trade in Dunedin. Butchers in the main were reluctant to give a definite opinion on the future price levels of meat, stating simply that they would be regulated by the supply' of stock at the auction markets. Some, however, thought that there was a possibility that some retailers might concentrate on selling second-grade meat, supplemented by supplies purchased from freezing companies inperiods of scarcity, in an endeavour to obtain a large turnover at a smaller profit.