LAME EXPORTS

Southland Times, Issue 21949, 25 February 1933, Page 6

LAME EXPORTS

GLOOMY OUTLOOK GLUT OF PRODUCE ON MARKET FARMERS CONCERNED The failure of the raising of the exchange rate to help the farmers in securing better prices for the lamb exports was commented on and approhension was expressed concerning the future of the lamb market at the monthly meeting of the Southland Executive of the New Zealand farmers’ Union yesterday. Mr E. K. Sim said that a special meeting of executive members had been called to consider the replies received to representations made to the Government urging that exporters be compelled to give farmers retrospective benefit of the exchange rise on lambs sold and killed, but not exported prior to the increase. It appeared to be considered that there was no hope of the farmers obtaining the benefit as requested, as the companies contended that what they gained at the time of the rise they would lose when the rate was reduced again. Mr R. Sim said it appeared that the large exporters and the wool-buyers were receiving the benefit of the enhanced exchange instead of the farmers. It appeared that the exporters had set out to defeat what the Government had done to help the farmers, who were now getting only the disadvantages of the exchange variation. The executive should see that the farmers were not robbed of the small amount of equity which they should be receiving from the Government s aS Mr n D? e McDonald said he considered that the Government had been, lacking in its duty in not stipulating that everything not yet exported from the Dominion should bear the increase in exchange. . The president (Mr Peter Arnott) said it appeared that they could abandon any hope of getting retrospective benefit from the increase in the exchange rate. , ... Mr L. Hill said that in his district farmers had sent their lambs away several days before the rate had been increased and one company had paid the increase, while the other company had not. Mr W. H. Ward: What company? We can help that way by sending our lambs to them. A member: You can’t give it in open meeting. The president said it seemed unreasonable to expect a buyer to pay an increased price after the deal had gone through. He did -not think there was any prospect of anything further being done. Mr H. Smith said that several farmers had approached him as president of the Gore Sub-Executive and he had forwarded the following telegram to Mr David Jones, chairman of the Meat Board: “Farmers are deeply concerned that the schedule price of lamb and mutton has been reduced to the price prior to the increased exchange. We consider that the increase is not being passed on to the producer by the exporters. We understand that, the schedule is being further reduced.” Mr Jones had communicated with him by telephone and had informed him that the position of the lamb market for the next two months was very gloomy. There was a tremendous quantity of lamb on the water at the present time. The exporters had anticipated a drop in prices, and had not passed on the full benefit of the rise in exchange. It appeared that there was no hope of a rise and he considered that those who were fortunate enough to have sold their lambs before the exchange rate had been raised were better off than those who were getting the benefit of the increase. . Mr W. J. A. McGregor said he understood that there was a likelihood of the freezing works closing down for two months on account of the glut of lamb. This woUlff be nothing short of a calamity. The farmers appeared to be at the mercy of the companies. Mr E. K. Sim said that Mr Jones had given an assurance that there was no fpundation for such a rumour. ’ The chairman: Well, gentlemen, what can we do further in the matter? Mr E. K. Sim: Await developments. Mr A. H. McLean: Leave a bad job alone. ~ , , , Mr Smith said they could only watch the position. Mr J. O’Shannessey: The position boils down to this: that we are the lambs waiting to be slaughtered. The chairman: Well, I can ask the lambs if they are inclined to kick. (Laughter.) Mr W. Couser said that the farmers were at the mercy of combines. This was why the produce boards had been set up. The farmers should see that the boards did what they were set up to do. Mr Smith said that the farmers could ship their lambs on their own account, but they could not obtain quite as good concessions as the exporting companies could. The board had set out to keep the channels clear for individual shipping. Mr E. K. Sim said that unless the meeting was prepared to urge the Meat Board to take full control of the handling and marketing of meat it was no use attempting anything further. . "7. j * Several speakers were inclined to favour the board assuming complete control. , „ The Meat and Wool Committee, was instructed to keep the matter in view.