MEAT TRADE

Ashburton Guardian, Volume 68, Issue 186, 19 May 1948, Page 2

MEAT TRADE

Unjust Conditions Alleged NO RELIEF OBTAINED BY RETAILERS (P.A.) WELLINGTON, May IS. “It is contended that no other distributive trade is forced to operate under such- unjust and impossible conditions as tha retail meat trade, and even though these conditions have prevailed for a period of years, no relief has been obtained by the trade.”

•This was stated by the secretary of the New Zealand Mae ter Butchers’ Federation (Mr Green) in his submissions to the Fresh Meat Supplies Commission of Inquiry which opened its sitting in Wellington to-day. Before proceeding to present the Federation’s opinions on points of the order of reference for inquiry, MiGreen said the meat retailer had been compelled to conduct his business in which retail prices were fixed by buying and wholesale prices had not been subject to any price order, and as a result of various causes, the meat retailer had ' been unable to purchase meat at prices that could be related to the prices on which the fprice order was based.

“The introduction of various controls and regulations has brought increases of costs which must enter into retail prices and affect the economic structure created by price fixation,” he said. “The trade has been asked, or rather compelled, to absorb all increases, and the Federation now requests that these unjust conditions be removed and that its members may be permitted to operate on a sound and economic basis, with provision for a reasonable trading margin between buying and selling prices.”

Effect of Rationing Mr Green said fresh meat supplies had always been'adequate, but were subject to the need to transfer live stock from one area to another, the effect of climatic variations such as drought and storm, and the effect of the export and winter seasons. Meat rationing aggravated the position because it reduced the purchasing power of ’the consumer, which caused the meat retailer to concentrate his buying into the lighter classes of stock within the ox beef and wether mutton group to give the consumer the service which was demanded in the form of smaller joints and cuts, to meet the coupon collection demands, and .to maintain his conversion rate. “This Federation considers that m the event of an emergency period occurring as a result of drought or an epidemic it would be desirable to augment, supplies* in the affcctßcl aiGas from fresh chilled, or, as a last resort, frozen, stocks which may* be available in other localities,” said Mr Green. “It is recommended that a permanent council or board be etsablished to administer the retail meat industry, and that the control of supplies m such circumstances be at the direction of that board.”

Grading Method Criticised

Mr F A. Sisson (for the New Zealand stock and Station Agents’ Association) said the system of grading ■ of meat for the retail trade had created an undue demand for first grade (red stripe) meat, which, with the decreasing numbers of types of stock required for first grade meat, brought about unduly high prices for these types. The supply position for fresh meats would be helped considerably if there was some relaxation in the grading system by which a greater quantity of ewe mutton and cow beef was graded first grade according to quality and weight. Good quality cow beef and ewe-mutton, properly finished, were just as acceptable to the If, through bad seasonal conditions, there was insufficient fresh meat on the present graded basis, the public must either eat less fresh meat, or frozen meat would have to be made available,- he continued. If the second course were taken it must be mentioned that if prices were depressed, it would 'discourage farmers from producing for the winter mafket. This Association considered a domestic market on a similar basis to the export price schedule impracticable, said Mr Sisson. The auction system must in the opinion of stock and station agents be retained. To after the present system would cause a major ‘upset to farming economy. The Association had no objection to the practice of freezing companies participating in the wholesale and retail meat trade provided their operations did not extend to give them control, or part control of the wholesale or retail meat trade. The Association favoured municipally owned abattoirs so that butchers had killing facilities .at all times outside the cqntrol of the freezing companies, he said.