FROZEN MEAT TRADE

Ashburton Guardian, Volume XLI, Issue 9431, 31 January 1921, Page 2

FROZEN MEAT TRADE

NEW ZEALAND'S SHIPMENTS.

In the course of their annual report on the Home meat markets, Messrs Gilbert Anderson and Co., the wellknown London agents, have some interesting remarks on the position. They point out that m their previous annual report they had had to deplore j±he congestion m England, and the difficulties then prevailing to dispose of Government stocks rapidly enough to provide storage space for the large arrivals, so that steamers could be discharged without long delays. Happily, that position existed no longer, and the demand for New Zealand, meat i was such that they at least could not obtain nearly sufficient supplies to satisfy demands. Steamers arriving were able to dock immediately and commence discharge without undue delay, thus facilitating their prompt return to the Dominion. Naturally, this change was not brought about without much effort, but it became apparent within a few weeks of the Board of Trade acceding to the urgent request of the trade to be allowed^ to dispose of the meat to all traders direct .through the nominated agents, and reopen the regular channels of distribution. That ;change m policy took place at the latter end of March last, and they considered that if it had been made six months earlier the liquidation of ■ stock • would have been considerably accelerated, congestion would not^ have been anything like aB serious as it was, and the necessity for finding an^ outlet m America for lambs required at Home would have been aroided, at any rate to a large extent. Trend of De-control. Unlike many other trades on which the official hand was laid, and from which oontrol was lifted with a suddenness that caused violent reaction, the trend of de-control of frozen meat was being carried out progressively with much mora satisfactory results. Despite urgent representations by the trade, the Government could not see ita way olear to depart from one of the most pernicioxis faults of control, i.e., the charging of over-all prices for good, bad, and indifferent meat, although, of course, it discriminated between mutton, lamb, and beef. It was not until May that a change was made, and a better state of affairs 1 was brought about by the institution of differential prices for wethers and ewes, cut and uncut. " One result was that out wether mutton was m great request, to the detriment of the sale of large stocks of ewes, and, m consequence, after the lapse of a few weeks, cut ewes, were reduced ,to 6d per lb wholesale. At this price'the wholesale and retail trade soon perceived a paying proposition, so that, soon after this reduction, out ewes were selling freely. Meantime, the demand for lamb continued unabated, so much so that the Ministry of Food at a later stage issued instructions that mutton and lamb had to be sold together m the ratio of not less than two to one, respectively. Further assistance m clearing the stocks of imported meat was derived from the attitude of the Home farmer, who, as the time drew near to the date of the de-control of the Home-killed article^ held up his best cattle m anticipation of high prices. At the outset his expectations were realised, but the excessively high prices and the large supplies of imported put on the market undoubtedly defeated the ' 'hold-up" of the consumer v and a more reasonable basis of values was established. Chilled beef having to be sold at, "imported" prices (Is per lb for hinds and 8d for forces) was m good demand, and assisted materially m keeping tho price of Home-killed beef within reason.

The continuous arrivals of chilled beef since July made it impossible for the Ministry of Food to sell their NewZealand and Australian beef, consisting of ox, bow, and bull, stored irre- ' spectire of description, at the " controlled " price. No attempt was made to market this beef at its relative value as compared with chilled, and, ! finally, Messrs Vestey Brothers eff ected a deal with the authorities to purohase all the Ministry's remaining stocks m store, afloat, and waiting shipment. Much of this beef is now being shipped to the Continent. It had been ..difficult to , follow the Ministry's transactions, as besides the beef a similar deal was made with Messrs Vestey m regard to the remaining stocks of cut ewes (said to total about a million carcases). These sales were made without' consulting the nominated agents, who have all along been handling the meat on behalf of the Imperial Government, and seeing the purchase price had not been revealed, it was impossible, -to say/much »t the moment except that, provided the meat went abroad promptly, it was another step towards the early clearance of old .stocks and reversion to normal trading that was bo much desired. ,

An Optimistio Outlook. That briery summarised the events ot the past year, but New Zealand growers would take considerable interest m future erents. A certain amount of anxiety was natural but they could sea no reason for anything but an optimistic outlook during the present year, although there might be some disappointment m not obtaining the rory high prices that some of them expected. Stocks at Home vrere being disposed of rapidly, and freight facilities, whilst perhaps not all that could be desired, were on a basis that was m all the circumstances equitable, and the maximum benefit from which should be derived early m the year. The demand for New Zealand meat was good, and with grading and other details back again to pre-war standard there was no reason why the Dominions mutton and lamb should not maintain and increase the reputation for excellence which it so well earned m the past from the consumer. There was, howerer, one great disability under which the marketing of supplies of "free" meat would come. That was the maximum prices order, which it was understood the Imperial Government intended to enforce until it cleared its stocks, or finally released the trade of control at the end of June, 1921. That meant, that unless some differentiation In price could be secured, old and new meat must be sold at the same price, and not at fair relative values, which it was considered was grossly unfair to New Zealand, and which should be combated. They were further of opinion that if such a state of affairs could not be negatived it would mean the curtailment of shipments to England, where there was always likely to be a steady and certain demand for all grades.