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C. (52) 153
CABINET OFFIC RECORD COPY
9TH MAY, 1952
CABINET
COPY NO. 68
INCREASE IN MEAT PRICES
Memorandum by the Minister of Food
The Chancellor of the Exchequer announced in his Budget Statement
that meat prices would be increased by an average of 4d. per lb. I have agreed with the Lord President and the Chancellor that this increase should come into effect on 15th June. The previous increase was by an average of 3d. per lb.
on 22nd July, 1951.
2.
An average increase of 4d. per lb. on all meat and offal necessarily involves increases higher than the average figure on particular types and cuts since there are certain items, such as bones and trimmings which account for some 15 per cent to 20 per cent of the carcase, on which very little, if any, increase in price can be made.
3.
In drawing up the new schedules of meat prices which will operate from the 15th June we have endeavoured to spread the increases in such a way as to maintain, as far as possible, the normal relationship which the Trade regard as necessary between one type of cut and another. My colleagues will wish to be informed of the main changes proposed and a list of typical increases is attached as an appendix.
4.
Manufacturing meat prices will also have to be raised from 15th June, The price of manufacturing pork will be increased by 4 d. per lb., of beef by 34d. per lb., and of veal by 4d. per lb. No increase will be made in the price of manufacturing mutton which is unpopular with manufacturers.
5.
Prices of all meat products will have to be increased by amounts varying with the type and proportion of meat they contain. The most important items from the point of view of the housewife, and the only items which enter into the Retail Prices Index, are beef and pork sausages, which it is estimated will rise from 1s. 6d. to ls. 10 d. and from 2s, 2d, to 2s. 7 d. per lb. respectively, after taking into account recent increases in costs of other ingredients.
6. The new prices tend to narrow the gap which normally exists between the prices of beef and pork sausages and to that extent would not be regarded by the trade as giving the correct relationship one to the other, but the Lord President and I think that the increases proposed will give the best compromise in all the circumstances.
7.
The total effect on the Retail Prices Index of all these increased prices will be a rise of 1. 75 points.