IN THE ARGENTINE.

Auckland Star, Volume LVIII, Issue 31, 7 February 1927, Page 4

IN THE ARGENTINE.

PASTORAL AND MEAT INDUSTRY. HANDICAPPED BY TAXATION. Y ILL A K RICA -Paraquayl, Dec. 10. A petition signed by the principal freezing companies lias been addressed to the governor of the province of Buenos Aires protesting against the proposed increased provincial taxation, which, it is claimed, will seriously handicap the freezing industry. Under the nc« taxation scheme, it is provided that the packing houses shall pay a tax on the cost value of their products, the cost value to serve as a basis tor determining the turnover on sales effected outside the province. This increased taxation, which the freezing companies maintain would mean an extra burden of about 150 per cent, comes just at a time when they were expecting relief rather than an increase of the burden. They also point out that, while the national Government expenditure has increased about 100 per cent between 1914 and 1924, the tax on the turnover ot the freezing works has already been increased about SOO per cent during the same period. One effect oY this heavy extra taxation will be to increase the iost of both chilled and frozen meat to ioreign consumers, which will be a direct benefit to New Zealand and Australian producers. The lower prices paid by the freezing companies even for the best grade of cattle and their refusal to accept animals over a certain weight have caused considerable discontent among breeders and iatteners. Of late, owing to the exceptionally mild open winter, the supply of fat cattle has beeu considerably above the average. The coal strike in England has also had an injurious effect on the export trade to that country, although this has not affected the Continental trade, or has. in fact, rather given it a stimulus. The Continental Trade. The v,-liter has always stressed the importance of developing other markets besides England for the disposal of Now Zealand produce, as a reserve outlet for those times, only too frequent, when the home market is unavailable, or only partially available, and the present instance is a case in point. The export of Argentine meat to Continental Europe is already considerable, and is increasing. Only recently, the municipal authorities of Paris opened public markets for the sale of frozen meat, and it was noticed that on the first day all that offered was of Argentine origin. A class of carcase can be sold in the Continental market which is not easily saleable in England: moreover, the European Continent takes frozen meat principally, while in England the dema-id now is more for chilled meat, which cannot so easily be sent from New Zealand or Australia. During the fortnight preceding the writing of this report. 198.257 quarters of chilled beef were sent from the Argentine to England, compared with only 12.374 quarters of frozen; while the Continent, during the same period, took 79,573 quarters of frozen. Thus the frozen meat disposed of on the Continent was more than six times that sent to the home market. Producers Study Markets. Argentine producers carefully study the market requirements. The trend of the trade in Britain has for'many years been for smaller and younger well-finished cattle. In more recent times, home buyers insist on young well-conditioned cattle of acceptable weight. Animals over a certain weight are difficult to dispose of, or must be sold at a reduced price; hence the indisposition of the freezing works to handle this class of cattle. By far the greater portion of the beef sent to England from the Argentine is carried at a chilled temperature, which makes it imperative to effect sales as soon as possible after it is put on the market. The report for 1925 of the Union Cold [storage Company (Vestey Brothers 1 shows that the gross profits increased i>y £35,244. The ordinary dividend of ten per cent has been maintained for many years. A writer in the "Financial Times," ot London, praises this company's financial strength, and says it is performing a real service both to producers and consumers. He adds: "There is obviously something wrong when chilled meat can be brought from South America, grown on land costing ten times as much as in Australia, while in the northern territory cattle aru allowed to die sooner than incur the lo<.of operating the near-by Port Darwin works." He is certainly wrong when In says good cattle land in the Argentine costs ten times what it does in Australia: the position is quite the reverse. It is true, some years ago the Port Darwin freezing works operated by Yestey : Brothers were closed, but it was mainly ; owing to the unreasonable demands ot | labour, Yestey Brothers declare, ttiat cattle handled in their Argentine freezing works I -fuld be put oh board steamer at a inert fraction of the cost incurred at Port Darwin, and that it was better to close down the works than run them at a loss. It is well known that labour is dearer in the northern territory than in any other part of Australia: while, owing to the tropical climate, it is less efficient. The same is true of the greater port of Queensland. The Cattle Belt. The "cattle belt"' of the Argentine is situated in ttie same latitude as NewZealand. and has a climate not unlike that of the North Island. It is to latitudes such as these that we must look for a vigorous development of the freezing industry. For the same reason. Brazil though it possesses excellent natural pasturages end apparently all the requirement.- "t a prosperous cattle industry, has never boon able to compete with Hie Argentine as a cattle country, as least lot exnort—the conditions are too tropical. Nevertheless, some freezing works exist in the south of the country, and in the State of Rio Grande do Sul much atten tion has been given to cattle breeding, tlu number of cattle in that State beinp estimated at 9.000.000. or a quarter ol the whole number in Brazil. Here excel lent results have been obtained by the crossing of the native stock with Durhams Herefonls. Polled Angus. Devons. aiu: others of the best breeds. All that is required to develop Southern Brazil as a cattle country is a more settled Govern ment. The climate is similar to that oi Uruguay, a great cattle country, and all South American countries pre eminently the home of the Hereford; it is said that 90 per cent of the bovine rtock there is white-faced. As an arrangement has now beer arrived at by the rival (British am American 1 groups of freezing companies and as. at. the moment of writing these lines, the coal strike in England seems about to end. we may expect soon to set a vigorous attack made by the combine groups on the European market, botl British and Continental, that is. if loca difficulties (which are by no means small can be obviated. Nor is it impossible that some day an agreement may be arrived n1 between freezing companies in New Zea land. Australia, and the Argentine tc apportion the markets in a manner whicr might best suit their conflicting interests and to prevent cut-throat competition Such agreements have proved very effective and beneficial in European industrial circles.