PRODUCE DISPOSALS

Te Awamutu Courier, Volume 73, Issue 6282, 16 September 1946, Page 5

PRODUCE DISPOSALS

PROSPECTIVE MEAT SCHEDULE With export contracts now determined it should soon be possible to settle with stabilisation the freezing schedules for the coming season’s meats. Dairy price negotiations, which are as complicated as those for meats, are already under way, and an early announcement of payouts for the current season is expected. This was the subject discussed last week by a Wellington authority on the produce negotions with the Government. The case of meats is of immediate interest, although the killing season does not really get under way for another three months, because of the influence schedules must have upon store stock prices. The big cattle transactions have now begun, and large transfers of hoggets will soon be under way. In pre-war years such business had to be done “in the dark”; those involved could only guess at what freezing values would be at periods of three to nine months ahead. However, as we now have long-term bulk purchase contracts we might as well take advantage of them. There does not appear to be any good reason for delay, in the determination _of schedule prices. Mt G. H- Grigg made a signficant statement in his address to the annual meeting of the Meat Board when he said that the case for increased prices for meat sent by us to Britain was based on “increased costs of Production in New Zealand, no advantage being taken of the present seller’s market to obtain still furthei increases.” As our Government was finally responsible for the contract made with Britain, it is reasonable to infer that the Government agreed' that increased costs necessitated the 7 a per cent, price rise granted. 1 his being so, the Government would presumably agree to the full increase passed on to the producers, less only any processing cost that might be involved in the overall A 7?. per cent, increase would raise beef values by 3s per 1001 b giving a schedule of 45s instead of 425, the equivalent of £1 on a chiller. lhe effect upon lamb would be to increase the schedule by id., equivalent to Is 9d a head- The wether price would lift by id., also equivalent of Is Ja a head. Ewes would rise Jd., approximately Is Id a head. There is a parity between store and fat values, and it might be suggested that two-thirds of fat stock price increases should go to the produced of stores; and it is likely to do so. If that basis be accepted, then steers should rise by from 12s to 15s, wether hoggets by Is 3d, and store lambs, which will come on to the market later in the season, also by Is 3d a head. The breeding ewe is in a different category as . representing a gain in both her own value as mutton and the value of the lamb she will produce. Allowing for this, her value should rise by 2s to 2s 3d; to

be in corformity with the other increases suggested for stores. Of course the figures here given are only a forecast of matters yet to be decided. It is improbable that all meats will share equally in the price increases- Fat lamb is undeniably at a very good level, mutton not so good, and, in my opinion, there is a strong case for giving beef added price encouragement.