Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Meat Industry Act - Australian Meat Board - Report and financial statements, together with Auditor-General's Report - Period - 1 July to 30 November 1977


Download PDF Download PDF

The Parliament of the Commonwealth o f Australia

AUSTRALIAN M EAT BOARD

Final Report

For Period 1 July 1977 to 30 November 1977

Presented pursuant to Statute 7 June 1978 O rdered to be printed 9 June 1978

Parliamentary Paper No. 172/1978

Parliamentary Paper No. 172/1978

The Parliament of the Commonwealth of Australia

AUSTRALIAN MEAT BOARD

Final Report

For Period 1 July 1977 to 30 November 1977

The Commonwealth Government Printer Canberra 1978

© Commonwealth of Australia 1978

Printed by C . J . T h o m p s o n , Commonwealth Government Printer, Canberra

REPRESENTING MEAT PRODUCERS P. D. A. Wright (Deputy Chairman) B. H. Hughes, CBE R. B. Gerrand

J. P. Dempster J. M. Kerin T. H. Bryant

AUSTRALIAN MEAT BOARD MEMBERS 1 17/77 to 3 0/11177 CHAIRMAN REPRESENTING MEAT EXPORTERS

Colonel Μ. H. McArthur, OBE R. G. Jones

D. S. A. McFarlane

REPRESENTING THE AUSTRALIAN GOVERNMENT G. Mackey

S E N I O R O F F I C E R S L O C A T I O N O F B O A R D O F F I C E S

ACTING CHIEF EXECUTIVE OFFICER Address Phnno Telex

R. S. Jordan, DFM

ASSISTANT EXECUTIVE OFFICER G. K. Precians, BEc

CHIEF TECHNICAL ADVISER DrM . A. S. Jones, BVSc, PhD

SECRETARY ECONOMIST W. A. Cunningham, MEc

DIRECTORS: FINANCE ADMINISTRATION J. Perrin, MIAA

Head 5 Elizabeth Street

INDUSTRY LIAISON Office Sydney, NSW, 2 0 0 0 2 3 1 1 3 3 3 2 2 8 8 7 MEATBOARD

E. C. Davis & NSW (MEATBRD)

INFORMATION SERVICES G. K. Precians. BEc

Postal A ddress

MARKETING SERVICES Box 4 1 2 9 , GPO

D. R. Joyce Sydney, NSW, 2001

MEAT AND LIVESTOCK LIAISON D. B. Muirhead

TECHNICAL SERVICES L. E. Brownlie, MSc Agr

S T A T E M A N A G E R S

R. Wilson NSW As above

Η. H. Tuppen Vic SBU Building 6 7 5 0 0 1 3 2 0 7 5 MEATBOARD'

118 Q ueen Street M elbourne, Vic, 3 0 0 0

67 5 0 0 2 (MEATBRD)

J. Kennedy Old Dalgety H ouse 221 4 0 4 9 4 1 2 5 4 MEATBOARD

79 Eagle St Brisbane, Old, 4 0 0 0

(MEATBRD)

R. J. Black SA 172 North Terrace 51 5 3 6 6 / 7 8 2 5 1 8 MEATBOARD

Adelaide, SA, 5 0 0 0 (MEATBRD)

Μ. E. Basile WA Grain Pool Building 3 2 1 9 0 5 5 / 6 9 2 4 8 7 •MEATBOARD

172-1 7 6 St G eorges Tee Perth, WA. 6 0 0 0

(MEATBRD)

D. H. Peacock Tas AMR Building, 8 6 Collins 3 4 3411 / 2 58111 MEATBOARD

Street, Hobart, Tas, 7 0 0 0 (STOCKEX)

O V E R S E A S R E P R E S E N T A T I V E S

L. G. Spencer Europe Irongate H ouse 01 2 8 3 8 8 7 1 6 9 •MEATBOARD

2 2 -3 0 D uke's P lace 1 7 7 7 /8 (MEATBRD)

London, ECS England

(LDN)

P .M . L, Wood North Suite 3 8 4 5 2 1 2 4 3 2 2 3 5 7 4 2 MEATBOARD

America O ne World Trade C entre

New York, NY, 1 0 0 4 8 USA

9 2 4 0 (AMBUR)

K .R . Wilson Asia W orld Trade C entre Bldg 4 3 5 5 7 8 5 J 2 5 6 6 9

ΎΟΚΜΕΑΤ

4-1 H am am atsucho 2-Chom e. Minato-ku Tokyo, 105, Japan

(MEATBRD)

P. K. Weymouth, BAgrSc Middle Shahryar Bldg 8 3 - 5 0 4 7 -9 2 1 5 1 5 4

MEATBOARD

East 2 4 8 S oraya Av

Tehran, Iran

(AUS I IK)

25071/78-2 3

CONTENTS

Board Meetings and M em bership........................................................................... 8

Senior Staff Changes................................................................................................. 8

Overseas Visits — Board Members and Staff......................................................... 8

Liaison With Industry................................................................................................. 9

Meetings With Exporters and P r o c e s s o r s ....................................................... 9

Consultative Committee...................................................................................... 10

Technical Assistance to Industry................................................................ ............. 10

National Beef Recording Schem e...................................................................... 10

Bruising in Beef C a ttle ........................................................................................ 11

Carcase Classification........................................................................................ 12

Extension and Technical S e rv ic e s.................................................................... 13

Communication With In d u stry ................................................................................. 14

Market Development and Prom otion...................................................................... 14

Meat Education and Promotion in Australia....................................................... 14

Australian Meat Promotion O v e rse a s................................................................ 15

Control of Exports.................................................................... ................................ 18

(a) USA Meat Import L aw .................................................................................... 18

(b) Control of Exports to the USA...................................................................... 18

(c) Control of Exports to Canada........................................................................ 18

(d) Control of Exports to Ja p a n .......................................................................... 19

(e) Minimum Price Arrangements — Selected Countries.......................... .. 19

(f) Licensed Exporters........................................................................................ 20

(g) Approved Importers — North America................. ....................................... 21

Shipping.................................................................................................................... 21

(a) Shipping Arrangements to North A m erica.................................................. 21

(b) Board Shipping Com m ittee........................ .................................................. 21

(c) Freight Rate Negotiations............................................................................. 22

(d) Australian Shippers’ Council . ....................................................................... 23

(e) Method of E x p o rt............... .......................................................................... 23

(f) Freight Rates................................................................................................... 23

Australian Meat Production..................................................................................... 25

Australian Meat C onsum ption................................................................................. 25

Australian Retail Meat P ric e s................................................................................... 25

Australian Meat Export Situation............................................................................ 25

Australian Livestock E xports................................................................................... 26

Overseas Markets..................................................................................................... 26

Meat Exports by States to All Destinations............................................................. 29

Meat Exports by Countries of Destination............................................................. 30

Location of Export Slaughtering Establishments .................................................... 31

Finance..................................... ................................................................................ 85

5

Australian Meat Board 5 Elizabeth Street, Sydney 2000

The Rt. Hon. I. McC. Sinclair, M.P., Minister for Primary Industry, Parliament House, Canberra, ACT, 2600

Dear Minister

Submitted herewith is the report for the period from 1st July, 1977 to 30th November, 1977, of the Australian Meat Board which ceased operations as an entity under that name at midnight on 30th November, 1977.

It has been agreed with the Chairman of the Australian Meat and Live-stock Corporation, which is the new authority responsible as from the 1st December, 1977, for those functions previously performed by the Australian Meat Board, that the first Annual Report of the Corporation will include statistics and details of both authorities for the whole year 1st July, 1977 to 30th June, 1978.

The attached report is, therefore, considerably abridged and my comment is limited to a statement of my sincere commendation for the magnificent spirit of co­ operation and dedication exhibited by the members of the Australian Meat Board, its executive and staff during the period of development of the new authority; parti­

cularly in the face of the difficulties and uncertainties, real and imagined, experienced during the period of transition from a Board to a Corporation with a greatly different constitution and increased areas of responsibility.

Yours sincerely,

(Μ. H. McArthur)

6

Australian Meat and Live-stock Corporation 5 Elizabeth Street Sydney2001 231-1333

May 8,1978

The Rt. Hon. I. McC. Sinclair, M.P., Minister for Primary Industry, Parliament House, Canberra, ACT, 2600

Dear Minister,

As required by the Australian Meat and Live-stock Corporation Act 1977, I submit herewith a final report on the operation of the Australian Meat Board, which operated under the Meat Industry Act 1964, for the period commencing 1st July, 1977 to 30th November, 1977, together with financial statements in respect to

that period.

Yours sincerely,

(R. G. Jones Chairman)

25071/78-3

7

BOARD MEETINGS AND MEMBERSHIP

The Board met in normal session on six occasions during the period July 1 to November 30, 1977. Four meetings were held in Sydney, and one each in Melbourne and Brisbane. All Board members’ terms of appointments were continued from July 1,1977, until the commencement date of the Australian Meat and Live-stock Corporation.

SENIOR STAFF CHANGES

Mr. P. M. L. Wood, the Acting North American Representative, was confirmed in that position from October 1,1977. Mr. R. L. Hood was appointed Assistant North American Representative from October 1,1977. Mr Hood had previously been Research Officer in the North American office and had been acting in the position to which he has been appointed.

Mr. R. J. Black, the State Manager for Western Australia, was transferred to the position of State Manager for South Australia from July 1,1977. Mr. Μ. E. Basile was appointed Acting State Manager for Western Australia on the date of Mr. Black’s departure, July 1,1977.

Mr. K. W. Halliwell, State Manager for South Australia, was transferred to Meat Inspection Supervisor for Victoria from August 8, 1977. Mr. Halliwell returned to South Australia deputising for Mr. Black during his period of absence in the Middle East, October/November 1977.

Mr. I. G. Wing was appointed Senior Research Officer in the Marketing Division on October 24, 1977. Mr. Wing was previously with the International Division of the Commonwealth Banking Corporation.

OVERSEAS VISITS - BOARD MEMBERS AND STAFF

In July 1977, a delegation consisting of the Chairman, Col. Μ. H. McArthur; Deputy Chairman, Mr. P. D. A. Wright; and Mr. D. S. A. McFarlane went to the United States to attend the International Tariff Commission hearings held in Kansas City.

In August 1977, a delegation consisting of the Chairman, Col. McArthur, Board members Messrs. R. G. Jones, T. H. Bryant, P. D. A. Wright, together with Mr. N. Bargwanna, went to Japan for discussions with the Livestock Industry Promotion Corporation officials and Japanese Government officers regarding future meat trading with Japan.

Messrs. R. G. Jones, D. S. A. McFarlane and B. Hughes travelled to Korea, Poland and Romania in October 1977 for discussions with Government Officials regarding the possibility of meat exports to these areas.

8

Also in October 1977, a delegation consisting of Messrs. P. D. A. Wright, T. H. Bryant, J. P. Dempster representing the Board; and Mr. Ian Kennedy repre­ senting exporters, visited the Middle East to inspect the meat industry in that area. The delegation tour culminated in attendance at the AGWA Fair in Tehran in

early November. Accompanying this delegation were Messrs H. Ewins, Promotions Manager; R. B. Black, State Manager, South Australia; and the Middle East Representative P. K. Weymouth. . The Promotions Manager, Mr. H. Ewins, in July/August 1977, made a visit to the Middle East to meet meat trade officials and to review the progress of promotion in the area.

Mr. R. E. Davies, the Advertising Manager, visited Singapore in early August and September 1977 to arrange and supervise the barbecue and other functions for meat trade and Government Officials in conjunction with the Board’s involvement in the London-to-Sydney Car Rally. Mr. Davies took the opportunity at the same

time to make contact with a leading public relations agent in the area who assisted the Board’s activities. In September/October 1977, Mr. N. Ward, Quality Assurance Manager of the Board, was invited by the Department of Overseas Trade to become part of a

delegation from Australia to inspect and advise on cold storage facilities in the Middle East. Mr. J. Dellagiacoma, Senior Technical Officer (Engineering), travelled to the United States to inspect equipment being considered for purchase for the carcase

classification scheme.

LIAISON WITH INDUSTRY

M eetings With Exporters and Processors

The Board continued its practice of conferring with representatives of the Australian Meat Exporters’ Federal Council, the Australian Meatworks’ Federal Council and the Council of Australian Public Abattoir Authorities on all matters of importance to the industry.

The following are some of the subjects discussed, some of which resulted in recommendations being made to the Board. General Forecasting of exports

Common code Export grading Livestock exports Ritual slaughter for Moslem countries

Carcase classification Computerised selling . Overseas markets USA — Control of exports

EEC — Restriction on imports of fancy meat Sweden — Chilled beef Japan — LIPC

9

Shipping

North America — Designation of lines to carry meat Maxima freight rates Japan — Freight rates

PIT inquiry

UK/Continent — Efficiency of service Level of freight rates

CONSULTATIVE COMMITTEE

During the period under review, there was no meeting of the Consultative committee as provided for in Section 25 of the Meat Industry Act.

TECHNICAL ASSISTANCE TO INDUSTRY

National Beef Recording Schem e

The sixth meeting of the AMB’s Advisory Committee on the NBRS was held in Armidale in October, 1977, where it had an opportunity to inspect at first hand the new facilities being developed for the scheme. Some of the key points to come out of this meeting were:

(a) As many new computer programs and breed-society schemes would be implemented during 1978, there was a need to have a person appointed to look after field liaison for the NBRS on a national basis. Steps are being taken to make such an appointment.

(b) The Producers’ Committee recommended the continued apointment of Mr. P. A. Rickards to liaison activities with breed societies until 1980, so that all societies wishing to have their processing undertaken by the NBRS will receive adequate professional assistance during the implementation of their respective programs. This recommendation was endorsed by the full Committee.

(c) The question of compatibility between the NBRS and carcase classification was raised, and a paper on this will be prepared in conjunction with staff of the Australian Meat and Live-stock Corporation.

(d) Breed societies will be approached to publish lists of performance recording herds showing the level of recording on a scale D Calving and fertility data; C Weaning data;

B Weaning and final weight; A Weight and carcase classification.

10

(e) The Technical Committee of the NBRS is working on advertising standards for performance recorded stock.

(f) Dr. J. M. Rendel was approached to complete a scientific and technical assessment of the NBRS system of recording and analysis. (This was done late in 1977, for circulation to the January, 1978, meeting of Standing Committee of Agriculture.)

In the 30 months since the fourth AMB Advisory Committee meeting resolved to accelerate the development of the NBRS, the scheme has been transformed in scope and magnitude, and by the early 1980’s it could well be servicing over 10,000 beef breeding herds.

As a result of a joint funding agreement made in May, 1977, a computer/con­ ference room complex was added to the ABRI offices late in 1977, and the computer will be installed in January, 1978. The State Departments of Agriculture, the Commonwealth, the Australian Meat Research Committee, the University of

New England and ABRI are all making financial contributions to this valuable resource for the beef industry. The news of the NBRS development has been received with enthusiasm by beef breeders throughout Australia. Already 10 beef breed societies have

contracted to have all their processing (i.e. pedigrees and performance) undertaken by the NBRS, and this number could be considerably higher by the end of this year. The Animal Genetics and Breeding Unit at Armidale continues to expand its activities, and its analyses of NBRS data files are assisting in the design of

performance recording schemes which cater for unique characteristics of individual breeds in a way which was not possible previously. Techniques for sire indexing will receive special attention during 1978/79. Final weight tests have been introduced to a number of the pedigree/per­

formance schemes operated by breed societies, and programming is well advanced for the introduction of this feature to the NBRS “basic unit”.

Bruising in Beef Cattle

Continuing research into cattle bruising concentrated mainly on comparing methods of sale, breed comparisons, handling and transport features. Three trials conducted into selling methods, combined with seven previous trials, indicates that the contribution of saleyards to bruising may well depend on

the design, state of repair and personnel associated with each centre. Another handling exercise was carried out to complete a series of four trials indicating that extra handling does not necessarily have to result in added bruising. Further investigations into comparing internally “smooth” stockcrates with

conventional crates failed to reveal any differences. However, the possible advantage of the modified crates over longer distances and rougher roads is not being discounted. Two further breed trials have been completed, and several more are believed

to be necessary, before any concrete conclusions can be drawn. Present indications suggest that within breed differences are greater than between breed differences.

25071/78-4 11

C arcase Classification

In 1971, the Australian Meat Board conducted a committee of inquiry into the need for a carcase classification and/or grading system for beef. In 1972, a similar committee of investigation was carried out into the need for a sheep carcase classification scheme. The Board resolved to undertake a 4-phase program into the development of a carcase classification scheme for both species. These phases were:

1. Experimental background. 2. Commercial testing. 3. Voluntary introduction. 4. Mandatory. From mid-1972 until now, work has been carried out on beef carcase classification. The development of sheep proposals did not start until mid-1974. Both of these proposals have now advanced to the stage where commercial testing is being undertaken. In mid-1976, the Board approached Government through the Australian Agricultural Council for monies for commercial testing. Some $400,000 was provided from the Commonwealth and State Governments and industry research funds for the commercial testing phase.

Progress towards phase three of the 4-phase programme is in the planning stages, and proposals will be forwarded to Government on the implementation of this next phase.

BEEF CARCASE CLASSIFICATION

Computerised equipment to allow the objective classification of beef carcases was installed in two abattoirs (Casino and Cannon Hill) during the latter half of 1977. These trials have replaced the earlier experimental trials carried out at Aberdeen and Wodonga.

The equipment is designed to objectively classify carcases on the slaughter floor with the description based on the following factors: Dentition: (0,1,2,4,6 or 8) Sex: (Steer, heifer, cow, bull)

Weight: (Based on a standard carcase definition) Shape: Objectively assessed on the relationship of carcase weight to length to give a shape score ranging from 1 to 4 Fat: Objectively assessed from 12th rib fat depth. A 7-category fat

score is developed.

These five factors can, in combination, give a good description of carcases for use as a trading language such that the particular preferences of buyers are reflected back through the marketing chain to the producer. While teething problems have been encountered incurring some delays in instrumentation, the necessary modifications are now being tested in the field. Equipment from other manufacturers is to be installed in early 1978 to allow field evaluation of all equipment.

Extension material is being prepared in conjunction with State Departments of Agriculture. A booklet explaining the Producer Guideline Notes, as well as a slide/tape series to explain the beef classification scheme, are both· in the final stages of completion. Programming to allow the printout of classification details for producers has also been completed. A short film has been prepared which outlines beef carcase classification in action.

12

SHEEP CARCASE CLASSIFICATION

As a result of monies being allocated for trials in sheep carcase classification, the following four sites were chosen as being suitable. (i) Riverstone Meat Company, Riverstone, NSW. (ii) Western Australian Meat Commission, Robbs Jetty, WA.

(iii) South Australian Meat Corporation, Gepps Cross, SA. (iv) T. Borthwick & Sons, Brooklyn, VIC. The sites were chosen on the basis of their spatial distribution throughout Australia, and the probability that these abattoirs process all the different sheep

carcase types likely to be encountered in Australia. The first equipment was installed at Riverstone in November, 1977, and this will be followed by the Robbs Jetty installation in December. The equipment used in these two trials is from New Zealand, but designed by AMB staff specifically to

carry out the procedures of sheep classification. Equipment to be installed in SAMCOR will be supplied by IBM, and Streeter Amet is the supplier involved with the Borthwick trial. During this period, much attention was focused on the development and modification of equipment to enable classification to be performed under

commercial conditions. This involved modifications to trial sites to accommodate the classification equipment. Also, it has been necessary to investigate different methods of measuring carcase length, as the variation in the size of slides and gambrels causes inaccuracies in measurement of carcase length if not accounted

for.

Further, the development of a plan on how sheep carcase classification information should be made available to all sections of the meat industry, especially producers, has been a major aim of this work. It is recognised that any document should be as informative as possible, in providing producers with all the

data on stock slaughter that can be of use, but in a concise summarized form. Due to the interest created from the trials in classification, there has been a need to make available instructive and informative material on the progress in sheep carcase classification. Slide tape series and video tapes are being prepared in

conjunction with State Departments of Agriculture. Research into the usefulness of the carcase measurements included in the scheme has continued. This has been done in conjunction with both the South Australian and New South Wales Departments of Agriculture. This involved

carcase measurement on lambs, and full dissection of selected half carcases into the three carcase components — muscle, bone and fat.

Extension and Technical Services

During 1977, the Board’s technical staff assisted management in aspects of the quality control of beef produced against orders held by commercial firms for supply to the USSR, Poland, Romania, Bulgaria, Yugoslavia and South Korea. Additional assistance was given to firms in the preparation of chilled sheep meats for shipment by air to the Middle East.

Further work has been undertaken in the development of draft proposals for “Standardized descriptions of meat cuts”. This will be completed early in 1978.

13

COMMUNICATION WITH INDUSTRY

The Board continued to be aware of the need to maintain its channels of communication with the industry and producers generally. It ensured that its publications were regularly despatched to branch secretaries of producer organisa­ tions, and continually strived to make all areas of industry aware of what publica­ tions were available.

“The Meat Producer and Exporter”, with a circulation of over 7,000, continued as the main point of contact with producers and industry. “Market Notes for Livestock and Meat” underwent a change of format to increase its usefulness to readers. Circulation has risen and is now in the vicinity of 3,200.

News releases by the Board continued to be of value to the press, radio and television. The Board also invested in audio-visual equipment, which will improve the range of communication generally.

MARKET DEVELOPMENT AND PROMOTION Market development and promotion continued to be one of the major activities of the Board. Many projects were undertaken, both in Australia and overseas, to promote Australian meat.

The Board continued its representation on the Overseas Trade Publicity Committee, which acts as the co-ordinating body for the allocation of Government funds made available to assist in the cost of overseas promotional activity. Budgets of $721,000 and $378,000, for overseas and domestic markets respectively, were allocated by the Board for its programs in 1977/78. The amount of support from the OTPC for the current year has been approved in the ratio of 65c Government funds for every $1 spent by the Board. The Meat and Allied

Trades’ Federation of Australia indicated that it would provide $30,000 on a $1 for $1 basis for joint domestic promotion.

M eat Education and Promotion in Australia

The period July through to November, 1977, was one of consolidation by the Board, in which existing material was utilized to a greater extent and new methods of approach by the Board were examined in detail.

Nevertheless, the period saw a number of new initiatives and publications. “Meat and the Home Freezer”, a prestigious publication of 24 pages, was produced to fill the need for an authoritative and informative work on bulk buying of beef and home freezing. The booklet received the approval of the Consumer Education Freezing-of-Foods Council (NSW). It has received wide acceptance and a reprint seems necessary for the near future.

An advertising campaign in leading Australian women’s magazines, featuring full colour advertisements, was commenced in August, 1977, and continued through the period under review. A good response to these advertisements has been indicated by the large number of requests to the Board for recipe material.

Although extra prints of Board films were purchased for all States, demand for films continued to out-strip supply. Consequently, there remained unfulfilled orders in all States at the end of the school year.

“Meat Makes the Meal”, a monthly recipe service featuring kitchen-tested recipes by Mrs. Tess Mallos, the Board’s Food Consultant, continues to receive high acceptance with nearly 100 magazines and newspapers taking the service.

14

Board support was given to a number of beef promotions, such as Wagga Beef Week in New South Wales, and the Dookie Field Day in Victoria. For the first time, the Board had a display at the Orange Field Days in 1977. The display featured beef and sheep carcase classification, audio visual equipment

and films, together with hand-out material for children and housewives. The Board, in conjunction with the NSW Egg Marketing Board and the Wine Board, were involved in providing demonstrations at Centrepoint in Sydney during an Australian food fortnight in August. Mrs. Tess Malios demonstrated and gave

tastings from many of the recipes which are featured in Board publications. A “Beef and the Future” symposium and barbecue was held at Flemington Racecourse on Sunday, September 18, to coincide with the Royal Melbourne Show. Organised jointly by the Australian Meat Board and the Royal Agricultural

Society of Victoria, the symposium attracted more than 500 people. The symposium, chaired by the Board’s Chairman, Colonel Μ. H. McArthur, was officially opened by the Minister for Primary Industry, Mr. Ian Sinclair, who spoke-on the future Australian Meat and Live-stock Corporation.

The Board’s Director of Technical Services, Mr. Les Brownlie, explained the concept of carcase classification and its many ramifications in the beef industry of the future. Dr. M. A. S. lones, the Board’s Chief Technical Advisor, demonstrated computer marketing, with the large bank of electronic screens.

Among the many guests were Mr. Walter Ives, Secretary of the Department of Primary Industry; Mr. Y. Ota, Chairman of the lapanese Live-stock Industry Promotion Corporation; Mr. Paddy Lane, Chairman of the Irish Farmers’ Association; and the Board’s American representative, Mr. Peter Wood.

Australian M eat Promotion Overseas

NORTH AMERICA The Board continued the policy of not undertaking direct promotion in the United States. As in past years the Board’s main promotional activity in the area was through its co-operation with the New Zealand Meat Producers’ Board and the American Sheep Producers’ Council on the Lamb Promotion Co-ordination

Committee. The activities of this Committee are jointly financed and directed by the three Boards. The Committee’s activities are aimed at increasing the American consumers’ acceptance of lamb through an educational program.

UNITED KINGDOM The opportunity to import beef from Australia remained restricted, and therefore the Board’s promotional activities in the UK were low key. The Board again staged a display of Australian fancy and canned meats at the Royal Agricultural Show at Kenilworth in luly, 1977.

It continued to undertake a small amount of generic advertising emphasising Australia’s role as a world leader in meat exports. In August, 1977, the Board staged a promotion in conjunction with the start of the London-to-Sydney car rally.

EUROPE Activities in this area continued to be at a low level because of the import restrictions still imposed.

EASTERN EUROPE The emergence of Eastern European countries as a. potential market was recognised by the Board through its involvement with a special trade function associated with the Poznan Fair. This activity was supported by a Board delegation

to Poland and Romania in October, 1977.

25071/78-5 15

SW ED EN As in past years, all promotional activities in Sweden were carried out in conjunction with the Australian Trade Commission in Stockholm, and were co­ ordinated by the Board’s local advertising agent and European representative. Promotional activity was maintained in a similar fashion to previous years, with emphasis being given to clearly identifying the product as of Australian origin through the use of the Board’s logo stickers and point-of-sale material.

REPUBLIC OF KOREA The Republic of Korea represents a developing market for Australian meat. The Board sent a delegation to Korea to investigate the potential of this market. They met with Government and meat trade officials, and a number of functions were organised for this purpose.

The area is serviced by the Asian Representative, and the Board has initiated the production of recipe leaflets and recipe books in Korean through its Tokyo office. The Board produced a Korean version of meat export charts, which have proved popular with exporters and importers.

JA PA N The Board’s promotional activities in Japan reflected the continuing import restrictions imposed by the Japanese Government. Limited promotional activities were used to maintain Australia’s existing pre­ dominance in the market, although plans are prepared so as to react quickly to any change in attitude to the import of meat by the Japanese Government.

The Board’s AMB logo pre-packed sticker program continued to expand gradually, and the new recipe booklet based on “Budget Beef Cookery” has gained wide acceptance, with nearly 1,000,000 books distributed to the end of the period under review.

MIDDLE EAST The Board’s activities increased substantially in all areas of the Middle East during the period under review. In July, 1977, Mr. Howard Ewins, the Board’s Promotions Manager, visited the Arab Gulf countries of Kuwait, Bahrain and Iraq, to gain first hand knowledge of the area, and for discussions with meat trade and

Government Officials to determine the direction in which the Board’s promotional activities should move in the future. Mr. Ewins also visited Iran, where he observed preparations for the AGWA Fair to be held in Tehran. The AGWA Food Fair was the major activity undertaken by the Board in the Middle East. Commencing on October 28, the fair attracted large crowds throughout its duration of eight days.

The Board mounted a display at the fair which had many attractions, including meat cutting demonstrations by the Board’s South Australian Manager, Mr. Robert Black; free meat samples, tastings of cooked and canned meats, displays of chilled and frozen beef and lamb, and an attractive display of canned product.

The stand also featured country scenes of cattle and sheep in Australia, together with an automated display of Board films with Farsi language sound tracks. The AMB stand was manned by the Board’s Middle East Staff, together with Mr. Ewins and Mr. Black.

16

Prior to the AGWA Fair, a Board delegation led by Deputy Chairman Mr. P. D. A. Wright, with Mr. T. H. Bryant, Mr. J. P, Dempster, A.M.E.F.C. Vice Chair­ man Mr. I. P. Kennedy, Mr. Ewins, Mr. Black, and accompanied by Mr. P. K. Weymouth, visited Bahrain, Kuwait, Saudi Arabia and Iraq. They had valuable

discussions with Government and meat trade officials, and examined many facil­ ities and retailing operations in the area. In Bahrain, arrangements were made to provide support for the Bahrain catering school and the new meat market. A

display of lamb and beef cuts and quarters at the Gulf Hotel, Bahrain, was followed by a formal luncheon for invited guests of the delegation. In Kuwait, a meat trade display and barbecue to promote Australian lamb and beef was organised to coincide with the delegation’s visit.

Except for Mr. Bryant, the delegation returned to Tehran and attended the AGWA fair. They entertained official guests and held discussions with Govern­ ment and meat trade officials on a wide range of topics dealing with meat imports to Iran.

The Board, through the Department of Overseas Trade, arranged for a static display of photographs and colourful printed matter within the Australian pavilion at the Baghdad Trade Fair in October. The Board delegation, which visited Baghdad later that month, was advised that the fair was considered to have been most successful for Australian exhibitors.

OTHER M ARKETS

The Board continued its efforts to develop alternative markets, while depressed conditions existed in traditional markets. In August, 1977, the Board mounted a large promotion at the Raffles Hotel in Singapore, at which Government and meat trade officials met drivers in the London-to-Sydney Car Rally, and sampled prime Australian steaks and choice cuts of Australian lamb. Some limited advertising both before and after this event was

undertaken by the Board. The Board again co-operated with Times Publishing, Singapore, in the popular magazine “Her World” annual, by producing an attractive and light­ hearted calendar, which was issued as an insert in the publication. Nearly 80,000

copies of the calendar were distributed in South East Asia and Australia. The Trade Publicity branch of the Department of Overseas Trade, through its editorial service, continued to place articles featuring meat recipes, cookery advice and information provided by the Board’s Food Consultant, Mrs. Tess Mallos. These

articles were translated into local languages and reached large proportions of the population. Board agents and offices in the Middle East, Singapore and Europe supplied similar services in their areas. The Handbook of Australian Meat continued to be used as a book of

reference for the meat trade generally, and nearly 500 were sent overseas during the period. Once again, the Board is indebted to the staff of the Department of Overseas Trade, and the Australian Government Trade Commissioners, for their valuable

assistance in distributing Board promotional material, and in general making the hotel catering and meat trades in overseas countries aware of Australian beef and lamb. Large quantities of Board promotional material were provided to exporters

for use by them and their agents as support in their promotional activities overseas.

17

CONTROL OF EXPORTS

(a) USA M eat Import Law

A detailed statement on the operations of the US Meat Import Law, the negotiated levels of restraint by supplying countries,and their actual shipments over the period 1965 to 1977; appeared in the Board’s report for the year ended June 30, 1977. It was then reported that the global level of restraint for 1977 was set at 576,900 tonnes, whilst the Australian figure was 2%,200 tonnes.

During the period under review, shipments of Australian meat to the East Coast and Gulf ports of the USA were seriously disrupted by strikes on the USA waterfront, which extended over a period of about seven weeks. Despite the resulting delays to container vessels, Australia still succeeded in shipping to the full its entitlement for the year.

(b) Control of Exports to th e USA

For beef, veal and mutton exports to the USA, the Board decided to make no changes to the export control scheme already in operation. The Board announced after its October meeting however, that from November, 1977, buffalo meat in boneless and bone-in primal cuts and boneless form was to be an allowed export to the USA as a debit item, and as a performance earning item if shipped to markets other than the USA. Exports of minced or ground buffalo beef to the USA were not approved by the Board.

The Board also decided that the shipped weight of goat meat exports to the USA was to be a US entitlement debit from December 1, 1977. Goat meat is a quota item under Australia’s voluntary restraint agreement with the USA, but does not rank as an export performance earning item.

(c) Control of Exports to Canada

At its September meeting, the Board decided, after discussion with industry, that exports of fresh, frozen beef and veal to Canada for arrival in 1978 would be controlled by the allocation of Canadian entitlement to licensed exporters. Australia’s agreed tonnage for shipment to Canada in 1978 will be allocated as entitlement amongst all exporters on the following basis: (a) The first 50 per cent of 1978 entitlement to be allocated pro rata to each

exporter in proportion to the total of their individual exports of fresh, frozen beef and veal (shipped weight) to Canada in the calendar years 1974 to 1976, plus the boneless equivalent of their export performance of all beef and veal products to Canada during the quota shipment year (11 months) ended October 31,1977. (b) The remaining 50 per cent to be allocted pro rata to each exporter in

proportion to the boneless equivalent of their eligible export performance of all beef and veal products to all markets during the quota shipment year (11 months) ended October 31,1977.

18

(d) Control of Exports to Jap an

The Board had been concerned at the unsatisfactory prices received for Aus­ tralian beef and veal exports to Japan and, with this in view, the Board examined a number of alternative measures that could be taken, including a proposal from exporters.

In early November, 1977, the Board advised exporters that it had decided that an export control scheme for beef and veal exports would be introduced immediately, by which the quantity of beef and veal to be exported to Japan (including Okinawa) in any quota period would be controlled by the allocation of Japanese entitlement to exporters active in that trade.

The Board subsequently re-examined the problem of control of exports of beef and veal to Japan and, after consultation with exporters and receiving the support of the Australian Meat Exporters’ Federal Council for a modification to the basis of Japanese entitlement allocation, the Board advised exporters in late

November, 1977, with the Minister for Primary Industry’s approval, that entitlement to ship beef and veal to Japan would be allocated amongst all the licensed exporters as follows: (a) 70 per cent of Australia’s total entitlement to be allocated acording to the

ratio of each exporter’s chilled and frozen beef and veal exports (shipped weight) to Japan, excluding Okinawa, to Australia’s total exports of chilled and frozen beef and veal (shipped weight) to Japan, excluding Okinawa, over the calendar years 1974,1975 and 1976. (b) 30 per cent of Australia’s total entitlement to be allocated according to the

ratio of each exporter’s export performance of beef and veal (boneless equivalent) to all markets to Australia’s total export performance of beef and veal (boneless equivalent) to all markets over the ten months ended September 30,1977. Beef and veal exports to Okinawa, which it was previously intended to include in the' scheme, were not included.

Canned or cooked beef, beef and veal for ships’ stores in Japan, and salted beef with more than 5 per cent salt added, were also non-quota items under the scheme. However, all beef and veal shipments, be they quota or non-quota items, would require Board approval prior to export to Japan or Okinawa.

(e) Minimum Price A rrangem ents - Selected Countries

The minimum price arrangements for the export of beef and veal to Canada by Australia and New Zealand have been continued since July 1,1976. Approvals to ship have continued to be given for contracts written at or above 2 cents per lb. (US currency) below the price obtainable for the same product on

the US market on the date the contract was written.

25071/78-6 19

(f) Licensed Exporters

At July 1, 1977, 199 licences were current under the Meat Industry Act, 1964­ 73. Licences issued at November 30,1977, totalled 213, and these remain current to June 30,1978.

MEAT EXPORT LICENCES BY STATES

R e s tr ic tio n s Im p o se d b y B oard

S ta te o r T erritory

A t July 1 ,1 9 7 7

A t N o v . 3 0 ,1 9 7 7 C urrent to 3 0 /6 /7 8

Nil New South Wales 75 78

Victoria 38 40

Queensland 20 22

South A ustralia 4 4 .

W estern Australia 15 17 "

Tasmania 5 6

N orthern Territory — —

157 167

A. All classes of m eat to all New South W ales 14 15

destinations excluding USA Victoria 7 8

Queensland 3 2

W estern Australia 1 1

South Australia — 2

25 28

B. All classes of m eat to New South W ales 2 2

islands in the South Pacific Victoria 1 1

O cean and P apua/N ew Queensland 1 1

G uinea only

4 4

C. Processed m eat a n d /o r New South W ales 7 7

canned m eat only to all Victoria 3 3

destinations Queensland 1 1

W estern Australia 1 2

12 13

D. Fancy m eats only to all destinations —

E. Buffalo m eat only to all destinations —

F. Lam b & fancy m eats only to all destinations W estern Australia 1 1

TOTAL 199 213

20

(g) Approved Im porters - North America

Changes to the lists of approved importers — North America — were as follow:

Numbers of published approved importers as at July 1,1977

Firms in USA

47

Firms in Canada

16

Firms in Hawaii Total

63

Published list as at Nov. 30,1977 47 16 63

(Unpublished) importers as at July 1,1977 18 9 27

Plus: Firms added to the provisional list July 1977 to Nov. 30,1977 1 8 9

Provisional (unpublished) list as at November 30,1977 18 10 8 36

TOTAL 65 26 8 99

The approved importer policy for North America was maintained by the Board up to November 30,1977. On July 5, 1977, the Approved Importer North America Policy was extended to include the State of Hawaii.

Under this policy, meat exports to the USA (including Alaska, Puerto Rico and Hawaii) and Canada are to be sold only to or thiough North American firms approved by the Board. Shipments of meat to Puerto Rico are confined to Approved Importers who

are geographically located in Puerto Rico. The provisional (unpublished) approved importer list established by the Board during 1974/75 has been maintained.

SHIPPING

(a) Shipping A rrangem ents to North America

The Board decided in October, 1977, that the arrangement of designating lines to carry Australian meat to North America should continue in 1978. It re­ appointed for 1978 the lines so designated in 1976 and 1977.

(b) Board Shipping Committee

The Committee met on three occasions in the period, continuing its efforts to improve shipping services in the major trades.

21

NORTH AMERICA Liaison with representatives of designated lines continued during the period. The Board stressed to representatives the need to continue to match refrigerated space to the needs of the industry, as was achieved in 1976. Forecasts had improved, and the industry was in no position to accept increased costs which could arise as a result of overtonnagin'g.

The needs of the important beef producing areas of North-West Australia were again under review. An ad hoc committee was set up to study the future shipping needs of the area. The Committee handed down its report to the Board in October, 1977, and it is now in the hands of the AMLC.

ARABIAN GULF The Committee, in August, 1977, met with representatives of the Blue Star Line to discuss a proposed new container service to the Arabian Gulf, scheduled to commence in mid-1978, and which would serve both Australia and New Zealand.

The line was informed of the need to service all Australian ports, either direct or by centralisation. The Committee sought information on proposed freight rates and the intentions of the company in respect of the allocation of refrigerated space between Australia and New Zealand. The company undertook to supply this information before the service commenced.

(c) Freight Rate Negotiations

NORTH AMERICA In October, 1977, the Board Shipping Committee met with the principals of the designated lines to negotiate maxima rates of freight for 1978. The Committee reviewed the operations during 1977 and discussed in depth the projected program and the anticipated level of exports for 1978.

The principals of the designated lines presented a financial exercise and cost projections for 1978, which indicated a shortfall in freights of 17 per cent. After considerable discussion it was agreed that for the East Coast of North America, an increase of 7 per cent on base rates should apply with effect from December 4, 1977, to November 30, 1978. Bunker surcharge and currency adjustment factors, as agreed by the Board from time to time, are to be added to or deducted from, as appropriate, the new rates.

For the West Coast of North America, a similar increase was agreed, again for the 12 months ended November, 1978. In ensuing negotiations with the Australian Shippers’ Council for most cargoes other than meat, an increase of 9Vi per cent, covering the 12 months period, was agreed for both the East and West Coast trades.

JA PA N/KO REA In this trade the Board agreed to an increase of 9.5 per cent negotiated by the Australian Shippers’ Council (on which the Board is represented). These rates become effective from lanuary 1,1978, for a period of 12 months.

EAST ASIA (MANILA-TAIWAN-HONG KONG) In this trade an increase of 8 per cent was approved by the Board after negotiations between the conference and the ASC along similar lines to the lapan/Korea trade.

22

UK/CONTINENT

The Board Shipping Committee held discussions with the conference serving the area following an increase of 9 per cent, effective from October 1, 1977, for 12 months, recently negotiated with the ASC. In these discussions, the Board again stressed its concern at the high level of freight rates and the unsatisfactory service, particularly in respect of the Mediterranean area.

The Board reluctantly agreed to accept the increase, and suggested that further discussions, aimed at ameliorating current difficulties, be pursued between the conference and the AMLC.

(d) Australian Shippers' Council Active Board membership of the Australian Shippers’ Council has continued during the period under review. Close liaison was maintained not only in the field of freight negotiations, but

also on ad hoc committees covering the Australian stevedoring industry and the formulation of rules governing the introduction of a full container service to Singa­ pore/Malaysia. A further area of co-operation with the Council was in relation to

the Prices Justification Tribunal inquiry into container handling costs, which resulted in the refund to exporters of certain excess charges.

(e) M ethod of Export The use of coritainer vessels in the Australian export trade continues to expand. The period under review saw the introduction of a full container service into the Singapore/Malaysia trade and of a part service into both the Arabian Gulf and the Pacific Islands areas. Only the minor trades to South Africa/Mauritius and

South America are now served by conventional vessels only.

(f) Freight Rates

CURRENCY ADJUSTMENT FACTORS AND BUNKER SURCHARGES — MAJOR TRADES: As at November 30,1977 Percentage of freight paid

TRADE AREA

CURRENCY ADJUSTMENT FACTOR*

BUNKER SURCHARGE*

U nited K ingdom /C ontinent/M editerranean (+9.27) (10.10)

Hong K ong, Philippines, Taiwan +4.92 11.12

Japan/K orea +16.12 6.00

North Am erica East Coast + lb.bb (8.67)

W est Coast +15.45 (8.05)

South A frica/M auritius +7.40 ($4.85)

(PER TONNE)

Arabian Gulf (+9.85) (3.10)

Singapore/W est Malaysia +7.83 (7.26)

Papua/N ew Guinea +6.24 4.72

‘Brackets indicate that the percentage a n d /o r am ount enclosed has been incorporated in the freight rate.

23

CONSOLIDATED FREIGHT RATES FROM AUSTRALIA TO PRINCIPAL DESTINATIONS FROZEN AND CANNED MEATS

Cents per kg or dollars per cubic metre — Australian Currency at November 30,1977

Destination

Refrigerated Cargo Canned Meat Per Cubic M etre

Reference

Carcase M utton Gross

Carcase Lamb Gross

Carton Meat Nett

UNITED KIN GDO M 37.13* 45.48* 27.56 91.25 (a)

EUROPE D unkirk/H am burg Range 37.13* 45.48* 27.56 91.25 (a)

M EDITERRANEAN G reece 49.60* 60.46* 37.17 118.63 (a )(b )(c )

M alta 38.16* 46.51* 28.59 91.25 (a)(b)

NORTH AM ERICA East Coast 28.97 35.61 24.15 94.54 (a)

W est Coast 34.37 34.37 23.33 73.50 (a) .

CARIBBEAN 43.01* 43.01* 2 5 .4 9 95.22 (a)(h)

JAPAN 18.88* 18.88* 18.42 66.71 (a)

KO REA 19.75* 19.75* 2 0 .1 0 71.47 (a)

EAST ASIA Philippines, Hong Kong, Taiwan 20.23* 20.23* 15.2 2 70.71 (a)

M A LA YSIA /SINGA PORE From E astern Australia ψ 20.55* 20.55* 14.07 81.95 (d)

From W estern Australia ψ 20.00* 20.00* 13.47 80.18 (d)

AFRICA South 29.73* 29.73* 13.84# 108.21 (d)

East 38.91* 38.91* 2 3 .1 3 120.54 (d)

M auritius 30.58* 30.58* 14.68# 116.66 (d)(e)

ARABIAN GULF U pper (f) 51.15 51.15 235.85** 143.80 (d)(g)

Lower (f) 45.10 45.10 216.55" 122.70 (d) (g)

PA PU A /N EW GU INEA 31.51* 31.51* 115.74" 64.59 (a) (j)

All rates quoted include bunker surcharges and currency adjustm ent factors which can vary from time to time. Because of this, readers are advised to check rates before using them. * Nett W eight. .

" P er cubic m etre.

# Gross weight. (a) Based on effective container utilisation. (b) Includes port additional of $10.30 per tonne. (c) Includes 30.00% Eastern M editerranean surcharge. (d) Conventional rates. (e) Includes P ort Louis surcharge of $7.50 per tonne. (f) Beaufort Shipping Line.

Note: Gulf Shipping Lines rates to these areas (including Iranian and Iraki ports and M uscat) are those shown for East Africa. (g) Canned m eat — palletised. FCL lump sum rate of $2700 is also quoted. (h) Caribbean port charges om itted. Rates apply to Bridgetown, Kingston and Port of Spain. (j) R ates apply to Port Moresby.

24

MEAT PRODUCTION

Preliminary figures for slaughterings during the five months ending November, 1977, put cattle slaughter at 4.3 million head, a 15 per cent increase on the corresponding period of the previous year. Calf slaughterings at 1.4 million were down 2 per cent; sheep at 5.8 million were down considerably by 14 per cent; slaughter of lambs at 7.2 million decreased marginally; and pig slaughter, at 1.6 million, increased by 7 per cent.

In this period, total meat production increased 12 per cent to 1.2 million tonnes. This included a 17 per cent increase in beef to 883,000 tonnes, a 5 per cent increase in veal to 50,000 tonnes, a 10 per cent decrease in mutton to 112,000 tonnes, a 4 per cent increase in lamb to 118,000 tonnes and an 8 per cent increase in

pigmeat to 85,000 tonnes.

MEAT CONSUMPTION

The estimated domestic disappearance of total meat during the five months ending November, 1977, rose to 601,700 tonnes, compared to 591,600 tonnes during the corresponding period of the previous year. Within this period, the export market has absorbed most of the increased beef and veal production.

The domestic disappearance of beef and veal fell from 401,100 tonnes to 392,600 tonnes. That of mutton increased from 27,600 tonnes to 29,000 tonnes, lamb 87,600 tonnes to 96,300 tonnes, and pigmeat 75,500 tonnes to 83,900 tonnes.

AUSTRALIAN RETAIL MEAT PRICES

In general, retail beef prices have continued to trend upward during the third quarter of 1977, although at a slower rate than that of the previous quarter. A significant increase of beef prices in Perth contributed to the slight uplift in the overall beef average.

Similarly, the retail prices of lamb and pork continued their upward trend, at a decreasing rate.

MEAT EXPORT SITUATION

During the five months ending November, 1977, total meat exports (excluding canned and miscellaneous meats) reached 434,000 tonnes shipped weight, an 18 per cent increase on the corresponding period of the previous year. The decrease in exports of mutton and lamb, by 19 per cent and 17 per cent

respectively, was more than offset by the increase of beef and veal exports by 31 per cent.

25

Η

LIVESTOCK EXPORTS

Cattle

Total exports of cattle for slaughter during the five months ending November, 1977, were 19,551 head, with 52 per cent of these cattle originating from the i Northern Territory. The major market was Hong Kong, which accounted for 81 per | cent of the total. During the same period, the number of cattle exported for ; breeding totalled 8,683 head. j

Sheep

Total exports of sheep for slaughter during the five months ending November, 1977, were 2.014 million head, with 54 per cent of the total originating from South Australia. The major markets were Iran, Kuwait and Saudi Arabia, accounting for 59 per cent, 22 per cent and 13 per cent of the total respectively. During the same period, the number of sheep exported for breeding totalled 1,797 head.

OVERSEAS MARKETS

USA

Total beef and veal exports to the USA for the five months ended November, 1977, were 157,431 tonnes. The US GIF prices for Australian beef fell during the months of July and August, 1977, to a low of approximately SUS1.24 per kg. in August, 1977. GIF prices for Australian boneless cow beef averaged SUS1.29 per kg. in July, 1977, dropped to SUS1.25 in August, and peaked at JUS1.35 in November, 1977-

The USA January-November totals for 1977 showed red meat production at 35.9 million pounds, up 1 per cent from a year earlier, but beef production for the same period was down 3 per cent at 22.9 million pounds, while lamb and mutton production was down 4 per cent. The big advance in overall production was due to pork slaughter which, at 11.9 million pounds, was up 8 per cent over the same period of 1976.

Canada

Meat exports from Australia to Canada for the five months ended November, 1977, totalled 11,468 tonnes, of which 10,721 tonnes was beef and veal. Canadian cattle slaughter to November 19, 1977, was 3 per cent above that of the corresponding period in 1976.

Australia continued to ship against the Canadian import quota for beef and veal for 1977. Australia’s share of this quota totalled 26,921 tonnes.

26

Japan

Total meat exports to Japan (including Okinawa) for the five-month period July-November, 1977, was 72,936 tonnes, a slight drop on the same period the previous year. Beef and veal exports in particular fell by 10 per cent, essentially because of a 34 per cent decline in Australian exports of chilled beef in the period

under review, reflecting large increases in Japanese dairy steer production in 1977. The Japanese Ministry for Agriculture and Forestry increased levies on imported beef, effective as from November 1,1977. Beef import quota for the second half of the fiscal year 1977 (October, 1977,

to March, 1978) was announced in early November, and totalled 40,000 tonnes general import quota, plus an indication of a further 7,500 tonnes of special quota which was to be announced later. This was a slight increase on the first half year quota of 35,000 tonnes general and 3,544 tonnes special quota.

Exports of mutton fell over 17 per cent in the period under review to 31,160 tonnes, due essentially to firmer prices in the export mutton market and the avail­ ability of cheaper substitutes such as pork and horsemeat, etc., for processing purposes in Japan.

During November, 1977, the Board introduced an export quota scheme on shipments of beef and veal to Japan, after a lengthy period of unsatisfactory prices received for Australian exports of beef and veal to that destination. Entitlement was allocated to licensed exporters on the basis of their previous performance to

both Japan and other destinations, the scheme endeavouring to eliminate unnecessary competition among Australian exporters on the Japanese market.

Korea

The Republic of Korea has continued to develop as a new export market for Australian beef and veal, and could quickly become our second largest market in Asia after Japan. An AMB delegation visited Korea in October, 1977, to further encourage the import of Australian beef into that country. Its importance as a market is magnified by the significant quantities of bone-in carcase mutton which Australia has exported to Korea (8,462 tonnes of mutton for the five months July to

November, 1977). During the five months under review, Korea announced a beef import tender of 6,000 tonnes for bone-in quarter beef, of which Australia was awarded 5,800 tonnes. Korea is one of the few Australian export markets to still take beef in a bone-in form.

The rising affluence of the Korean people with a traditional taste for beef has resulted in increased domestic consumption of beef and, with demand continually outstripping domestic supply, should remain a growing market for Australian meat in Asia.

Middle East

Exports of Australian meat continued to increase to the Middle East, totalling over 56,000 tonnes between July 1 and November 30, 1977. Iran, Australia’s major market in the area, received 9,489 tonnes of sheepmeat and 11,265 tonnes of beef and veal from Australia during this period.

Another market of significance was Egypt, which took 11,442 tonnes of beef and veal, which represented 34 per cent of total beef and veal exports to the area.

27

Of the 1977 Iraq tender for 11,000 tonnes of lamb carcases and 4,000 tonnes of boneless beef hindquarter cuts, which was supplied by Australia, 1,882 tonnes of beef and 4,421 tonnes of lamb were exported during the July to November period. The development of chilled airfreight lamb and young sheep carcases continued, with quantities going to Jordan, United Arab Emirates, Bahrain, Qatar and Kuwait. I

The Middle East continued to develop as one of Australia’s most important markets for sheepmeat, representing 33 per cent of total mutton and lamb exports for the period under review. During October, 1977, a delegation consisting of representatives of the Board and the Australian Meat Exporters’ Federal Council left Australia to visit Iran, Bahrain, Saudi Arabia, Kuwait and Iraq. The aim of the visit was to hold discussions with Government Officials and attend promotional displays of Aus­ tralian b(eef and lamb.

Israel Exports of beef and veal to Israel amounted to 2,902 tonnes for the period under review. This was a significant increase over the 758 tonnes exported for the same period in 1976.

Greece In February, 1977, the import ban on frozen lamb 8-13 kg., and frozen bone-in beef, was removed and unlimited quantities were allowed subject to clearance through customs from March 15, until October 31, 1977. In March, 1977, a similar decision was made for frozen boneless beef and veal with the customs clearance to be effected within the period April 15 to December 31,1977. In September, 1977, it was announced that these clearance dates have been relaxed indefinitely. However, despite the easing of these restrictions, only 56 tonnes of meat were exported to Greece during the period under review.

Sw eden In September, 1977, the Australian Meat Board suspended arrangements for the monitoring of beef and buffalo prices to Sweden.

USSR For the five months ended November 30, 1977, beef and veal exports totalled 34,229 tonnes. Of this, 10,509 tonnes was first or second quality and 23,720 tonnes was third quality beef and veal.

For the same period in 1976, beef and veal exports totalled 12,091 tonnes.

EEC There were no changes in the administration of the current EEC beef regime, balance sheet arrangements, or GATT quota for the period July to November, 1977.

Intervention stocks were reported as 354,000 tonnes in November, 1977 (product weight).

28

MEAT EXPORTS BY STATES TO ALL DESTINATIONS 5 MONTHS ENDED NOVEMBER Tonnes (Shipped Weight)

TOTAL*

1977 1976 1977

7,833 17,954 10,736

3,778 3,010 3,905

330 309 347

18 159 435

117 148 304

1,373 1,447 2,257

30 176 94

1,498 4,846 5,635

1,813 56

6,570 16,872

553 2,617 1,629

1,607 406

12,091 34,229 119 75,010 132,587

19,944 24,429 1.089 936

295 21,472 9,227

3,808 2,241

979 18,755 4,495

3 562 3,544

6,723 82,019 70,879

3 1,571 2,057

964 9,105 6053

2,137 8,141 12,220

279 3,731 6,643

1 2,674 626

147 3,506 13,460

38 206 127

25 24,590 20,779

155 3,740 3,848

46 1,043 1,231

8 145 234

320 3,068 3,937

35 1,285 974

83 3,525 948

104 1,226 1,506

6,303

1,102

28 2,031 1,863

3 48

43 8,134 11,485

69 758 2,996

9

3,402 1,390

652 2,127 3,180

66 3,139 3,649

53 3,553 2,817

17 1,044 680

28,925 368,252 434,306

2

93

336 124 10

117 589 2 44

14

9

42

21 86

3,941 718 36

9

25

15 37 2

404 268 1

142 268 3 80

20

6 7

20

207 2 2

140 269

2

15

102

5,528 1.101 39

36 25

279 665

431 179 3

1,909

94 95

52 13 6

3

34 3 3 6

9

68

24 11

200 140

2,957

48 84

19 73 1 70

7

23

4,665

LOCATION OF EXPORT SLAUGHTERING ESTABLISHMENTS IN AUSTRALIA

LOCATION PROPRIETOR OR OPERATOR

NEW SOUTH WALES

Sydney Area H o m e b u s h ..........M etropolitan Meat Industry Board. R i v e r s t o n e ..........R iverstone Meat Co Pty Ltd (a m em ber of th e A ngliss G roup).

O ther Works A b e r d e e n ............ F. J. W alker Ltd.

B l a y n e y .............. Blayney (A battoir) County Council. B o u r k e ................ T ancred B rothers Pty Ltd.

B y r o n B a y ..........F. J. W alker Ltd.

C a s i n o ................ N orthern C o-operative Meat Co Ltd.

C o n d o b o l i n . . . . Condobolin In d u stries Ltd. C o o t a m u n d r a . . . Conkey & S ons Ltd. C o w r a ................ Cowra A battoir Ltd.

D u b b o ................ Council of th e City of Dubbo.

F o r b e s ................ Lachlan Valley County Council.

G o s f o r d .............. Gosford M eats Pty Ltd (also trading a s C harles David Pty Ltd). G o u l b u r n ............Goulburn City Council. G r a f t o n ..............Grafton Abattoir C o-operative Ltd. Q u n n e d a h ......... G unnedah Municipal Council. G u y r a .................. New England (A battoir) County Council.

I n v e r e l l ................ North W est Exports Pty Ltd. (also trading as

Sm orgon C onsolidated Industries Pty Ltd). M a c k s v i l l e ......... th e M id-Coast Co-op Meat Soc Ltd. M a i t l a n d ..............Maitland City Abattoir D epartm ent. M o r e e ................ Gwydir Valley (Abattoir) County Council.

M o s s V a l e ......... Berrima District M eats Ltd. M u d g e e ..............C udgegong (Abattoir) County Council. N e w c a s t l e ......... N ew castle Abattoir D epartm ent. O r a n g e ..............T. A. Field Pty Ltd (trading a s O range A battoirs

Pty Ltd).

T e n t e r f i e l d ......... Riverstone Meat Co Pty Ltd (a m em ber of the A ngliss G roup). W a g g a W a g g a . . W agga W agga City Council. W a l l a n g a r r a . . . . A nderson Meat Packing Co Pty Ltd.

W i n g h a m ............M anning Co-op Meat Society Ltd. Y a l l a h ...................Illawarra Meat Co Pty Ltd.

31

VICTORIA

M elbourne Area A l t o n N o r t h ......... R. J. G ilbertson Pty Ltd. B r o o k l e a . . . . . . T hos Borthwick & S ons (A /sia) Ltd. B r o o k l y n ............C o-operative F arm ers & G raziers’ Direct Meat

Supply Ltd.

B r o o k l y n ............P. & S. Siegel Pty Ltd.

D o v e t o n

( D a n d e n o n g ) . . Brooke Bond M onbulk Ltd (also trading as M onbulk P reserv es Ltd). D r o m a n a ............Playfair Meat (a division of W. D. & H. O. Wills (A ustralia) Ltd. N e w p o r t .............. R. J. G ilbertson Pty Ltd (also trading a s Cham pion

Meat Packing Co).

R i c h m o n d ......... P rotean E n terp rises Pty Ltd (also trading a s P rotean H oldings Ltd). W e s t F o o t s c r a y . S.C .I. Meat & P aper Pty Ltd (also trading as H oddle Packing Co Pty Ltd, Morr Export Co,

Pacific Meat Supply Pty Ltd, and Sm orgon Bros Pty Ltd).

O ther W orks B a l l a r a t ................ Pridham (Ballarat) Pty Ltd.

B e n d i g o ..............Carlo Meat Packing (1965) Pty Ltd. C a m p e r d o w n . . . H. C. Sleigh Ltd (also trading a s M eatpack (Vic) Pty Ltd and M ercury M eats). G e e l o n g ..............Ja c k s o n ’s Corio Meat Packing, Division of Corio

Meat Packing (1965) Pty Ltd.

K y n e t o n ..............J. C. Hutton Pty Ltd (also trading a s Kyneton

Meat P roducts Pty Ltd).

M o e .....................Rice Bros (Farm s) Pty Ltd.

P o r t l a n d ..............Thos Borthwick & S ons (A /sia) Ltd. S h e p p a r t o n . . . . C onsolidated Meat Holdings Ltd (also trading as Goval M eats Ltd). W o d o n g a ............Awol M eats Pty Ltd.

QUEENSLAND

B risbane Area C a n n o n H i l l . . . . M etropolitan Public Abattoir Board. D i n m o r e . ............ T. A. Field Pty Ltd.

D i n m o r e ..............S.C.I. Meat & P aper Pty Ltd (A ssociated with Sm orgon C onsolidated Industries). D o b o y ................ Darling Downs Co-op Bacon A ssn Ltd.

M u r a r r i e ..............Thos Borthwick & S ons (A /sia) Ltd. M u r a r r i e ..............Q u een slan d Bacon Pty Ltd.

O x l e y .................. J. C. Hutton Pty Ltd.

32

Toowoomba Area D r a y t o n .............. Toowoomba Public A battoir Board. W i l l o w b u r n ......... Darling Downs Co-op Bacon A ssn Ltd.

Rockham pton A rea L a k e s C r e e k . . . The C entral Q u een slan d Meat Export Co Pty Ltd. (a m em ber of th e A ngliss G roup). N e r i m b e r a ..........T. A. Field Pty Ltd.

Townsville Area .

S t u a r t ...................F. J. W alker Ltd (also trading a s Swift Meat

Division).

R o s s R i v e r ......... Q u een slan d M eat Export Co Pty Ltd (a m em ber of th e A ngliss Group).

O ther W orks B e a u d e s e r t . . . . T ancred B rothers Pty Ltd. B e e n l e i g h ......... Teys Bros (B eenleigh) Pty Ltd. B i l o e l a ................ A m agraze Ltd (A ssociated with F. J. Walker

Ltd.)

B o w e n .................T hos Borthwick & S ons (A /sia) Ltd.

C a i r n s ................ C airns Meat Export Co Pty Ltd (A ssociated with

F. J. W alker Ltd).

K i l c o y ................ Kilcoy P astoral Co Pty Ltd.

M a c k a y ..............Thos Borthwick & S ons (A /sia) Ltd.

M a r e e b a ............North Q u een slan d Bacon Pty Ltd. (A ssociated with Sm orgon C onsolidated Industries). M a r y b o r o u g h . . . F. J. W alker Ltd (also trading a s Swift Meat Division). M u r g o n ..............South B urnett M eat Works Co-op A ssn Ltd. O a k e y ................ Oakey A battoir Pty Ltd.

P e n t l a n d ......... T ancred B rothers Pty Ltd.

P u r r a w u n d a . . . . Beef City Pty Ltd. R o m a ...................Roma M eatworks Pty Ltd (A ssociated with

A nderson Meat Packing Co Pty Ltd).

W a r w i c k . . . . . . . W arwick Bacon Co Pty Ltd (A ssociated with John Dee (Export) Pty Ltd).

SOUTH AUSTRALIA

A delaide Area G e p p s C r o s s . .. South A ustralian Meat Corporation. N o a r l u n g a . . . . . Metro Meat Ltd.

O ther Works M o u n t B a r k e r . . . W. Ja c o b s Pty Ltd. M u r r a y B r i d g e . . Murray Bridge Meat Pty Ltd N a r a c o o r t e ......... S. E. Meat (Aust) Ltd.

P e t e r b o r o u g h .. Metro Meat Ltd. P o r t L i n c o l n . . . . South A ustralian Meat C orporation.

33

WESTERN AUSTRALIA

Perth Area C o o g e e .............. A nchorage B utchers (WA).

F r e m a n t l e

( R o b b ’s J e t t y ) W estern A ustralian Meat Com m ission. M i d l a n d J u n c t i o n W estern A ustralian Meat Com m ission S p e a r w o o d . . . . W atsons Foods (WA).

O ther Works A l b a n y ................ Thos Borthwick & S ons (A /asia) Ltd.

B r o o m e ..............Derby Meat P rocessing Co Ltd.

B u n b u r y ..............Bunbury Beef Exports (1967) Pty Ltd (also trading a s G lobem eat P ackers Pty Ltd, W. O. Jo h n sto n & S ons Pty Ltd, G lobem eats Pty Ltd, Golden Circle M eats). D e r b y ..................Derby Meat P rocessing Co Ltd.

H a r v e y ................ Harvey Meat Exports (also trading a s E . G. G reen

& S ons).

K a t a n n i n g ......... Metro Meat Ltd (also trading a s S outhern Meat P ackers Ltd). N a r n g u l u ............Metro Meat Ltd — G eraldton Division. W a r o o n a ............W ynne’s Meat Industries Ltd. W o o r o l o o ............W esfarm ers Lin ley Valley Meats Pty Ltd. W y n d h a m ......... W yndham M eats Pty Ltd.

NORTHERN TERRITORY A l i c e S p r i n g s . . . Alice S prings A battoirs Pty Ltd. K a t h e r i n e . . . . . . N orthern Meat Exporters Pty Ltd. M u d g i n b e r r i * . . . M udginberri Station Pty Ltd. P o i n t S t u a r t * . . . Port S tuart E state Pty Ltd.

TASMANIA C a m d a l e ............Tas M eats Ltd i !

D e v o n p o r t ......... S. P. Holman & S ons Pty Ltd. I

H o b a r t ................ M aster B utchers Ltd (also trading a s R ichardson’s j

Meat Industries Ltd. i

L a u n c e s t o n . . . . J. C. Hutton Pty Ltd. L a u n c e s t o n . . . . Launceston City Council. L o n g f o r d ........... R. J. G ilbertson Pty Ltd (trading as Longford Meat Com pany). |

S m i t h t o n ........... U.M.P. A battoirs Ltd. K i n g I s l a n d ......... King Island A bbatoirs Board.

‘Buffalo only

34

FINANCE The accounts of the Australian Meat Board are established in accordance with the provisions of Section 33 of the Meat Industry Act 1964.

Income is derived from a levy on the slaughter of livestock authorised under the Live-Stock Slaughter Levy Act 1964. Expenditure is for purposes defined by Section 34 of the Meat Industry Act 1964.

RATE OF LEVIES A S AT NOVEMBER 3 0 ,1 9 7 7

The following are the rates of levy on the slaughter of livestock for human consumption. For convenience, the table also includes levies imposed for research under the Meat Research Act 1960 and for national cattle disease eradication.

CEN TS PER HEAD

Operative R ates of Levy at 30/11 /77

For AMRC

Maximum For

R ates CSIRO National

Leviable — Industry Cattle

Columns For AMB Service and Disease

(1) — (3) Adminis- R esearch Investigation Eradication

Only tration (a) Section (b) Total

0 ) (2) (3)

C a t t l e ........................ 75 30 25 1 100 156

Sheep and Lambs . . 7.5 3 1.75 0.1 — 4.85

NOTE: The levy on the slaughter of livestock is paid by the person who owns the stock at the time when slaughter takes place. This is effective from 16/6/77 and replaces the previous pass back of cost arrangem ents. (a) M aximum rates leviable for AM RC research are:—

C a ttle .......................................................................................................... 25 cents per head

Sheep and Lambs ................................................................................ 3.33 cents per head

(b) From 1/7/76.

Levy is not imposed on:—

1. Livestock slaughtered which are unfit for human consumption.

2. Cattle slaughtered, the dressed weight of which does not exceed:—

(i) in the case of carcases from which the skin has been removed — 90 kg. (ii) in any other case — 100 kg.

3. Effective from 16/6/77, the slaughter of livestock for consumption by the owner of that livestock, by members of his family or by his employees.

35

10th May, 1978

The Right Honourable the Minister for Primary Industry, Parliament House, Canberra, ACT.

Dear Sir,

AUSTRALIAN MEAT BOARD

In compliance with the provisions of section 3(7) of the Australian Meat and Livestock Corporation Act 1977, the Corporation has submitted for my report financial statements of the Australian Meat Board for the final period of its opera­ tions from 1 July to 30 November 1977 comprising an Income and Expenditure Statement and a Balance Sheet. The above Act repealed the Meat Industry Act

1964 with effect from 1 December 1977.

A copy of the statements, in the form approved by the Minister for Finance under the provisions of section 3(6) of the Act, is attached for your information.

I now report that in my opinion — !

" i '

(a) the accompanying statements are based on proper accounts and records;

(b) the statements are in agreement with the accounts and records and show fairly i the financial operations for the period 1 July to 30 November 1977 and the f state of the affairs of the Board as at 30 November 1977; and 1

(c) the receipt, expenditure and investment of moneys, and the acquisition and i disposal of assets, by the Board during the period 1 July to 30 November 1977 j have been in accordance with the repealed Meat Industry Act 1964.

Yours faithfully,

(D. R. STEELE CRAIK)

AUDITOR-GENERAL

36

A U S T R A L IA N M E A T B O A R D

INCOM E AND EXPENDITURE STATEM ENT FOR THE PERIOD ENDED 30 NOVEMBER, 1977

30 June 30 November

1977 Notes 1977

$ $

INCOME

3,851,905 Proceeds from livestock slaughter l e v y ........................................ 1,670,555

8,760,238 Sales of m e a t ......................................................................................... —

91,589 R ecoupm ent for services................................................................... 37,368

468,513 In te re s t......................../ ....................................................................... 229,513

170,515 O ther i n c o m e ...................................................................................... (2) 125,279

13,342,760 . 2,062,715

EXPEND ITU RE

138,319 M em bers of B oard — Salaries, fees, and expenses..................... 70,932

12,299 B oard advisers and sundry com m ittees — Fees and expenses . 37,364

Salaries —

1,276,674 A u s tra lia ............................................................................................ 645,314

50,809 L o n d o n .............................................................................................. 24,589

110,371 New Y o r k ......................................................................................... 42,892

119,768 T o k y o ................................................................................................ 52,807

97,514 T eh ran ................................................................................................ 48,530 814,132

Adm inistrative expenses — 572,233 A u s tra lia ........................................................................................... 365,074

61,724 L o n d o n .............................................................................................. 30,979

79,749 New Y o r k ......................................................................................... 29,805

65,342 T o k y o ................................................................................................ 37,625

82,239 T eh ran ................................................................................................ 41,406 504,889

1,021,329 Prom otion, publicity, research and technical services.............. (3) 502,210

8,641,220 Purchase and m arketing of m e a t................................................... —

34,372 D epreciation....................................................................................... 24,250

57,556 Furlough p ro v is io n ........................................................................... 15,034

57,965 O ther e x p e n s e s................................................................................... (4) 237,698

12,479,483 2,206,509

— Excess of expenditure over in c o m e ................................................ (1) 143,794

863,277 Excess of incom e over e x p en d itu re ............................................... —

37

A U S T R A L IA N M E A T B O A R D BALANCE SH EET A S AT 30 NOVEMBER, 1977

30 June 30 November

1977 Notes 1977

$ $ $

CURRENT ASSETS 786 Cash and bank balances..................................................................... 8,974

82,091 D ebtors, less provision for doubtful d e b ts ................................... 141,690 (5)

447,946 Incom e a c c r u e d ................................................................................ 576,767 727,431

530,823

CURRENT LIABILITIES 313,162 Creditors and accrued lia b ilitie s.................................................... 318,725 (6) 318,725

217,661 408,706

OTHER ASSETS

6,949,578 Investm ents, at c o st............................................................................ 6,779,578 (7)

Land, buildings, furniture, equipm ent and vehicles, at cost 859,456 less d e p re c ia tio n ............................................................................ 891,233 (8)

40,857 A dvances to State and overseas o ffic e s........................................ 66,554

35,104 Deposits and prepaym ents................................................................ 55,937 7,793,302

8,102,656 8,202,008

PROVISIONS AND RESERVES 203,874 Furlough p ro v isio n ............................................................................ 209,332 ;

342,745 O ther p ro v isio n s.................................................................. .............. 580,433 (9) 789,765

546,619 789,765

7,556,037 A ccum ulated fu n d s............................................................................ (10) 7,412,243

8,102,656 8,202,008

38

Notes to and Forming Part of the Financial Statements.

1. Changes in accounting method (a) Provisions for recreation leave. Following a change in accounting policy all recreation leave availed by staff subject to A ustralian term s and conditions will be charged against a provision to accord with norm al accounting practice.

Form erly recreation leave was charged directly to salaries. If the accounting policy had not been changed there would have been a surplus of incom e over expenditure of $27,478 for the period ended 30 November, 1977. The liability for the current financial period 1 July, 1977 to 30 Novem ber, 1977 am ounts to

$51,480. See n ote 9. (b) D epreciation rates on buildings are based on the rem aining useful life of each building. Previous financial statem ents have not m ade provision for depre­ ciation on buildings. This change in accounting policy has been m ade to comply

w ith norm al accounting practice. If the change had not been m ade the excess of expenditure over incom e would have been decreased by $4,225. See note 8.

2. Other income $

O ther incom e comprises: E xport M arket D evelopm ent G rant 1976/77 ....................................................................... 125,000

M isc e lla n e o u s.............................................................................................................................. 279

125,279

3. Promotion, publicity, research and technical services This expenditure has b een credited with $65,476 which represents a contribution due by the Overseas T rade Publicity Com m ittee of the D epartm ent of Overseas Trade.

4. Other expenses $

O ther expenses com prise: Provision for doubtful d e b ts ...................................................................................................... 10

Provision for recreation leave................................................................................... ................ 171,272

Provision for superannuation pension increase..................................................................... 28,000

Provision for claims USSR m eat purchase 1976 .................................................................. 38,416

237,698

5. Debtors $

(a) Included in debtors is an am ount of $16,572 which is in respect of an advance m ade by the A ustralian M eat Board to effect the freeholding of an additional portion of land on the “Brian Pastures” property. The original advance was m ade in January 1973 and was for $21,072. It is being repaid to the Australian (b) M eat Board at $l,500.00per annum.

Provision for doubtful d e b ts ............................................................................................ 3,475

6. Creditors and accrued liabilities Included in creditors and accrued liabilities ($318,725) is an amount of $38,029 relating to the “B elm ont” — “Brian P astures” Reserve Fund. The balance in the Fund at 1 July, 1977 was $49,650. Am ounts credited to the Fund in the current period

totalled $8,413 and expenditure was $20,034. Further reference to the establishm ent and transactions of the Reserve Fund is contained in note 8(b).

39

7. Investments

Investm ents com prise C om m onw ealth G overnm ent and sem i-G ovem m ent inscribed stock, bank deposits and am ounts invested in the Official A ustralian Short Term M oney M arket at call. T otal costs and values at 30 Novem ber, 1977 were:—

Capital Cost Face V alue M arket Value

$6,779,578 $6,781,500 $6,340,547

L and, buildings, furniture, equipm ent and vehicles at cost less depreciation $

"Belmont" - "Brian Pastures" L and at c o s t........................................... .......................

Im provem ents at c o s t .................................................. 240,832

169,765

Less depreciation......................................................... 1,175 239,657 409,422

Residential property - land, at c o s t ......................................

Residential buildings at c o s t ....................................

Less depreciation.........................................................

176,072 3,050

81,194

173,022 254,216

Furniture, equipment and vehicles a t c o s t .................................

Less depreciation on furniture equipm ent and v e h ic le s................................................................ ....

335,227

107,632 227,595

891,233

(b) In pursuance of a M em orandum of A greem ent betw een the Board, the CSIRO and the Queensland D epartm ent of Prim ary Industries for the furtherance of cattle research, “B elm ont" National Cattle Breeding Station and “Brian Pastures” R esearch Station were established on land purchased by the Board and have been operated by the CSIRO and the Q ueensland D epartm ent of Prim ary Industries respectively. A “Belm ont” — “Brian Pastures” Reserve Fund was established under the

agreem ent and was m anaged by the Board. The fund is for use on either property and is m ade available only for expenditure approved by the three parties. The Fund is augm ented by 50 per cent of the net proceeds of the sale of pure bred cattle from “B elm ont" Station, funds in excess of those reasonably required to m eet budgeted and anticipated com m itm ents on either property and interest on the balance of the fund. During the period 1969/1973 additional land at a cost value of $269,331, was acquired in accordance with the

M em orandum of A greem ent. The title deeds to the land have been registered in the nam e of the Australian M eat Board. During the period 1968/1977 the Fund has also been used to finance other capital expenditure totalling $124,620 in accordance with the Agreem ent. However, the cost value of land and capital im provem ents have not been included in Land, Buildings, E quipm ent and Vehicles pending agreem ent of the parties to the M em orandum of A greem ent.

(c) The am ount of $240,832 shown under the heading Im provem ents, “B elm ont” — “Brian Pastures” represents the com ponent of the original purchase price of the two properties comprising buildings ($84,570), livestock ($76,463), fencing ($31,461), w ater im provem ents ($24,047) and other im provem ents ($24,291). Further im provem ents and purchase and sale of livestock have subsequently been undertaken by the operating authorities under the term s of the

M em orandum of Agreem ent. The extent of the interest of the Board in the further im provem ents m ade to the properties as at 30 November, 1977 has not yet been determ ined pending agreem ent of the other parties.

40

Other provisions O ther provisions com prise: Provision for claims USSR m eat purchase 1970 ......................

Provision for claims USSR m eat purchase 1976 ......................

Provision for superannuation pension increase (see note 12) Provision for recreation leave.......................................................

$

133,445 43,716 232,000 171,272

580,433

10. Accumulated funds $

M ovem ent in accum ulated funds: A ccum ulated funds 1 /7 /7 7 .................................................................................................... . . 7,556,037

Deficiency for period ended 30/11/77 ................................................................................... 143,794

A ccum ulated funds 30/11 /77 .................................................................................................... 7,412,243

11. Contingent assets (a) T here is a contingent asset because of an expected refund of excess em ployer contributions in respect of staff superannuation. T he am ount has not yet been advised.

(b) E xport M arket D evelopm ent G ran t in resp ect of the p eriod 1 /7/77 to 30/11 /77, $97,844.

12. T he above statem ents include the estim ated liability of the A ustralian M eat B oard to the Com m onw ealth by way of em ployer contributions for increased pension costs during 1973/77. T he am ount involved has not yet been determ ined.

13. T he financial statem ents relate to the period July 1,1977 to 30 November, 1977. The com parative figures included in the financial statem ents relate to the period 1 July, 1976 to 30 June, 1977.

(Sgd.) R. G . Jones (Chairman

Australian M eat and Live-stock Corporation)

(Sgd.) R. S. Jordan (G eneral M anager

Australian M eat and Live-stock Corporation)

41