MEAT EXPORT.

Auckland Star, Issue 38, 14 February 1929, Page 13

MEAT EXPORT.

CAPACITY OF WORKS. AUCKLAND WELL PROVIDED. FAKMKRS STATE CASE AGAINST EXTENSION. The management of the Farmers' Freezing Company has been very much exercised during recent months bv the increase in the killing facilities installed by a proprietary company. The present position of the various -works in the Auckland district is as follows: — Killing per Day. Sheep. Cattle. Storage. Auckland Farmers' Freezing < Ltd.— Southdown... ' 200 202,000 Hnrotin :>/»*> 2<i») 2ls'ono Moerewa 2000 200 100,000 TX. and R. Fletcher (X.Z.i. Ltd— Westfield T.OOO 2r>o 205,000 Total daily killing capacity. 11.000 SoO 720,000 The Farmers' Freezing Company have ■works on the King's wharf, used principally for dairy produce, the capacity of which is equal to 220,000 carcases, but no meat is handled there.

It appears that for some time prior to 1928 the Agricultural Department was pressing the West field Company to make improvements in the offal department of their slaughterhouse. The Westfield Company then submitted plans to the Department for extensions of their killing and offal departments, hut as these plans showed a large increase in the killing capacity the question was referred to the Meat Producers' Board. When the Meat Board recommended that permission be granted for the increase, various farmers' organisations in the province took the matter up, and made very strong representations to the Prime Minister and Minister of Agriculture about the wisdom of allowing the expenditure of any money on new works (for which the farmers must eventually pay) when the •works which the farmers had built and paid for were working at less than half capacity.

The Department, however, passed the plans for the extension of the building, but stipulated that there must be no increase in the killing capacity beyond the original 3000 per day. The reason for this was that, as the'existinp works had a killing capacity of 11.000 carcases per day, 8000 of which had been provided from capital subscribed by the farmers themselves, and of this 8000 only half was in use, under the circumstances it was held to be economically unsound to allow money to be spent on further facilities, which were not required, and for which the farmers would ultimately have to pay.

For three years prior to this the Horotiu works, with a capacity of 3000 *heep per day, had 7iot l>een required for the handling of export stock. An Increase at Westfield. Notwithstanding the restriction imposed by the Department, the West field company proceeded with the erection of the additions to their buildings, and fitted them up with an extra 24 killing pens and tackle for 24 extra slaughter" men, thus increasing their killing capacity by 2400 sheep per day.

The Minister of Agriculture in the late Government refused to allow the company to make use of these facilities for increased killings, and Mr. Forbes, the present Minister, had endorsed this decision. The reason for this is that the total killings of sheep and lambi? at the three works south of Auckland city last •eason only amounted to 318,000, and •s the capacity of these three works is equal to 9000 per day, the lot could be dealt with in 36 days' work.

All this work was easily done at and Southdown, and Horotiu was not required.

During this lamb season the Farmers' Company state they have given the Westfield Company all the space they have asked for at Southdown, and eould have given them a further 2000 per day at Horotiu had they required it. It makes no difference to the etockowner whether the animals are killed at Southdown or Horotiu, in fact there is •n advantage in killing at the Horotiu Works as the stock from the Waikato i* delivered much sooner and with less knocking about. A great deal can be delivered by motor lorry direct from the farm to the works. Fast special trains •re run direct from these works to the •hip. Grounds for Opposition. It has been claimed by the chairman of the Meat Producers' Board that the toard possesses ample powers to deal *ith thus state of affairs should the necessity arise, and that the Government eould cancel the export licenses of the offenders; but the Farmers' Company •sks what good would that do if proftnetary companies owned all the freez"g accommodation in any district, or in the whole Dominion. They would •imply close their doors and leave the •tock on the farms till the Government eame to terms, and it would be simply impassible for the farmers to try and *e-eetabli«?h independent freezing works in opposition to the powers in possesion.

Thev are afraid that there 13 a real danger, if the present drift is allowed to continue for a few years, that the meat export trade of the Dominion will fall into the hands of a few large companies with large interests in Great Britain, that all the smaller companies will be forced out of business and their assets taken over by the larger companies at a nominal price, because no one would have the courage to buy the works and try to run them in opposition to tlie stronger firm?.

It is agreed amongst those on whom the management of Fanners' freezing Companies of the Dominion devolves tflat there is to-day a very real danger °t organisations inimical to the interegts of farmers gaining control of the meat export business of the Dominion.

It is claimed that the methods adopted those of peaceful penetration—methods which are difficult to combat either oy legislative action or by any organisation established by legislation. Their jaetics aim at driving their competitors, both export buyers and non-buying freezing companies, out of the field by offering i-lightly higher prices for a ll iu\ and do ;>uve the way for an era °f iJo competition. A Suggested Solution. The way suggested of dealing with th.j overseas menace —if it is a menace to separate the dealing in stock or export and frozen meat from the *£tual freezing of meat and treatment of the by-products. /J *

-I o accomplish this would mean tliat the management of tiie freezing works of the Dominion would need to be under ihe control of a board or a number of provincial boards who would he responsible for carrying out the work- in the

f-ame way as any large company, leaving the business of buying the live stock and disposal of the frozen meat to any merchant who chose to enter the business, or to any producer who wished to snip on hi- own account.

This would maintain an open door and give equitable treatment to all, at the same time giving opportunity for the greatest possible competition for the ntock.

Briefly, this Is the case that the Farmers' Freezing Company set out in opposition to allowing any proprietary concern an extension of killing facilities at the present time.