NEW MEAT PRICES

Wanganui Chronicle, 4 October 1947, Page 5

NEW MEAT PRICES

ADEQUATE TO COVER FARM COSTS OPINIONS OF THE BOARD (P.A.) Wellington, Oct. 3. Certain complaints that the new season’s schedule meat prices did not adequately compensate the producer for his increased costs were without foundation and showed a lack of knowledge of the true position, said Mr. G. H. Grigg, chairman of th e New Zealand Meat Producers’ Board in a statement today. The Government decision to withdraw certain of the wartime subsidies on meat implemented what had been advocated for some time by farmers throughout the Dominion, continued the statement. It meant that the full cost of meat fell upon the consumer instead of his being, in effect, subsidised by the farmer, as most of the previous subsidies had been paid out of the meat indutry stabilisation account. It was far better that the impact of these high costs should be cushioned now, when prices were relatively high, than later, wheip price s might fall. The board’s case for increased schedule prices covered increased costs of fertiliser, freight, wages and the consequential increases insofar as these could be estimated at present. The

prices asked for by the board were approved by the Government. In the board’s opinion these prices compensated the meat producer for the proportion of increased farm costs applicable .to meat as distinct from wool. WOOL COSTS NOT ACCOUNTED FOR

In presenting the case based on a rise in cost of production on sheep farms the board, through fat stock schedule prices, obtained a percentage increase applicable only to meat. It was not possible to load meat prices with an additional percentage to cover the proportion of costs applicable to other sheep farm activities, such as the growing of wool. The sheep farmer, in accepting market prices for wool, naturally took the risk attendant on such a venture —he might or might not be compensated for increased costs.

The increased prices this season, continued the statement, would result in an overall increased payment to the meat producer of £2,000,000 on export meat. As the schedule increases would be reflected in the price of meat sold for local consumption, which was equal to half the tonnage exported, the total overall increased payment to meat producers would be in the vicinity of £3,000,000. The amount of manufactured fertilisers used during the 1946-47 rationing year was 605,000 tons. For subsidy purposes the percentage usage of fertilisers by various primary industries was assessed as: Dairy 55 per cent., meat 21 per cent., wool 14 per cent., other 10 per cent. “If the consumption of fertiliser reaches 700,000 tons this season," concludes the statement, “the meat industry’s proportion of the additional cost of £4,200,000 will be equal approximately to £BBO,OOO, thus leaving approximately £2,000,000 to provide for other increased costs, such as wages, freight etc. In the board’s opinion this covers the costs in question." _____