REVIEW OF THE FROZEN MEAT TRADE, 1890.

Press, Volume XLVIII, Issue 7780, 6 February 1891, Page 5

REVIEW OF THE FROZEN MEAT TRADE, 1890.

Messrs W. Weddel and Co,, of London* under date December B7th, Issued a very Interesting review of the fro_en meal trade for the past year, The following extracts will be read with interest by ou> agricultural and pastoral readers :—

IMPOHTATIONB. From one cause or another the less im portant sources of supply may from tlint to time have failed to maintain their pre vlous rate of progress, but the aggregate importatlou of fro~en meats Into this country has never ceased to grow, until from 400 carcases iv 1880 it has reached the large total of 8,104,590 carcases in 1890, New Zealand has shown throughout the steadiest increase; and but for the confidence In the future of the trade shown by all concerned iv that colony, aud theii determinatlon to develop it irrespective ol initial difficulties, the record would certainly have been a much less brilliant one than It Is. Here follows a table giving in detail the imports for each year since 1880. The IoV Dorts In 1890 were as follows :— ] c Carcases, Into London-From .. % fjWttl; „ Now Zealand .i _^C3,ti4y< ." River Hate .. i_,413- ---" ~ Falkland Islands 10,168, " Liverpool ~ River Haie „ Ll%s3_t ..Otherpom „ River Plate - HOW, Total importation ~ ~ 8,104,590' Total importation from River Plate 1.5U0.W4 It was estimated last year that, tin freezing capacity of the numerous worta iin New Zealand would admit of an increased output of 500,000 carcases^ per annum, aud this estimate has been fully justified, despite the stoppages caused by che recent strike In that colony. The rapid Increase in Australian exportatlone is the result of the resumption of free-inf* operations in Queensland--a source ol supply which promises ere long to be o) very consldeiable importance, lhe om shipment received from the Ealklanc Islands will not Improbably prove to w the precursor of moderate regular im portations during the ensuing year.

Quality. As regards arrivals from New Zealand, there has been evinced in recent years a general tendency towards deterioration th quality, which to a great extent may be a*counted for by the extension of area whence supplies are drawn, but which has, nevertheless, been somewhat of a hindrance to the maintenance of a reputation forundoubted superiority. While during IMB It appeared that a return to the hlfeh standard of the years between 1882 and 1885 was Immiuent, the experience ol 18SJ0 has unfortunately sufficed to dispel, to some extent, the hopes entertained a year a~o. Latterly. It Is true, several shipments have exhibited excellent especlally some of those recelvedfromSoath Canterbury the great bulk-di the past season's import has been lacking in weight of carcase, and has comprised an undue proportion of sheep of a more or less pronounced merino type. Muttob of thac class has hitherto been, and U likely to continue to be, comparatlvelS speaking, unpopular in this country, ana the urgency of tbat consideration ha 9 been forced upon the attention of importers and consignees not only by the relatively low grices obtainable for such descriptions, ut by the greater difficulty now experienced in maintaining their value in fade of the Increasing competition of Rlvei Plate, Sydney, and Queensland mufetoit The great Irregularity, too, in the quality of many New Zealand shipments has Ol late been accentuated, thereby rendering more arduous and costly the operations ol sale and distribution. Further referenC* to this part of the subject will be founfl under the head of " grading." , ' Australian mutton nas come to hand It distinctly better order during 1880 than ie any ot the immediately preceding years. Shipments from Sydney have done more than maintain their reputation, while those from Queensland are rapidly building up a good name for themselves it those parts of the country where suet mutton Is In requisition. ! . The effects of two successive bat seasons in the Elver Plate have beet made very evident In the defective quallti of shipments received from that quartet during the current year. The promises ol 1887 and 1888 as to a general Improvement in the character of the flocks f rOm wrnch supplies for freezing purposes are drawn, have not yet been more than parfclalh fulfilled. Alternate droughts and floods have combined to minimise the beneficial effects which are expected to follow upon the liberal Introduction In recent years on fresh blood from the best European flocks

Grading. It has for some time past been strongly felt by those most interested in the steady development of the New Zealand frozeK meat trade, that, in view of the Vast extent <of that trade and its established character, some serious ' efforts should now be made to grade and classify the exportations from that colony in a more thorough and efficient manner than has hitherto been adopted. When the industry was started the various Freezing Companies throughout the colony laid down clear and definite lines upon which they would operate tn selecting or passing carcases for shipment. These rules were based upon the best advice the time, and so long as they were rigidly adhered to were of tbe greatest service In maintaining the quality of New Zealand shipments at a high standard of excellence, and the experience then gained 03 the capabilities of that colony as a mttttort producing country, has, doubtless, madi consumers somewhat fastidious on tWi point of quality. The result of tha system, however, was altogether eatlsfao tory in so far as it may be credited wltl the deservedly rapid growth in publli favor of New Zealand mutton as agalns* Australian or Biver Plate. -, For various sufficient reasons the exact lug conditions originally imposed upoi shippers have gradually been modified, or, In the case of new refrigerating companies, never imposed, so that during tbe past year or two representative carcases pf almost every conceivable description, <?i sound mutton have been received froijj New Zealand. The fact that a given number of carcases bears one brand, has now ceased to be any guarantee of regularity! or even of similarity of breed, age. qi quality. The braud "prime, quality Vfr so often affixed to very inferior carcases that It Is not now looked upon as a reliable indication of the character of shipments. While on the one hand it is desirable that noue but prime qualities should be shipped, on the,other, It may be found a necessity to dispose of a proportion.of sheep to which that term is altogether inapplicable, by shipping to London. Such being the case, it has become increasingly evident tbat some fresh system is, called for uuder which every carcase shipped shall be .subjected to a scrutiny and classification not less exacting, but necgssarib less restricted, than that originally and wisely accepted as essential to tho alio/ cessful development of the industry. On Ist August last the New Zealand Refrigerating Compauy issued to its con. stltueuts a proposal to deal with this question, and although it elicited a fair amount of criticism, and opposition .at the time, no alternative scheme has, so far as we are aware, been offered, and shippers throughout the colony .are apparently still only partially convinced of the need of any change. > The scheme above alluded to had for Its basis the division of shipments into tha following grades, viz:— ' r Grade A—To consist of crossbred wethers and maiden ewes, ranging.in weights from 55lba to 70ibseach. Grade B.—To consist of crossbred wethers and maiden ewes, rongiugulja weights from 501bs to &tlba each. Grade C—To consist- of crossbred wethers and maiden ewes, each weighing from Tllbs upwards. , Grade D.—To consist of crossbred wethers and maiden ewes, ranging in weight Irom 4Qlba to 501bs each. Note—Crossbreds, to meet tbe requirements of the home trade, must not include sheep which are more than half merinos. Grade MER.—To comprise merinos weighing -Hbs and upwards. The above clobsificatlons were coupled with certain stipulations affecting forward sales on a C.F. and L basis, bat these did not necessarily form any part o% tb« grading system. The merits of careful grading may b> summarised as follows:— , No supposed advantage secured under the existing system will be lost to shippers. At present many of ihetr consignments embrace a few of all sorts of sheep, and are graded, so tc speak, in the course of sale to buyers —ope picking out one class and another a different class, according to his wants; but the as to what any given consignment consists of not Infrequently results in sheep being brought from the dock or other stores up* to.-,tw market, some of .which .are, not » 7>-U«d_or tbat day's jreaiOrema^a

and must be sent back to store at increased expense, or realised ac a reduction. If the grading were done in New Zealand that source of loss to shippers would be avoided. Sales', could be made after a time on the .. .basis of colonial grading, at a say- ' ing In expense at this end. Buyers could be supplied .exactly with ■..- the descriptions they require, and a j .higher average of prices might in ' consequence reasonably be looked for. Inasmuch as the different districts in New Zealand are well marked out in the minds both of town and provincial buyers, the grading of the product of each district under a distinctive port mark would farther assist consignees in making their selection of the markets in which to realise shipments. Grading for weight will, as a rnle. be found to result In the carcases being graded according to quality, but, of course, there are some exceptional cases to which ibis would not altogether apply. When a parcel of light weight carcases is found by,the Freezing Company dealing with it to be of really prime quality, a simple notification of the fact to consignees will bis sufficient for the full protection of a snipper's interests. To approach this important matter in any narrow-minded way, in the expectation of being able to tttby satisfy all interested parties must inevitably lead to disappointment and tbe postponement of a much-needed reform, but in view of the steady increase of importations from New Zealand it behoves ail those interested in the support of prices to adopt some improvement in the classification of mutton, and if the foregoing be r&Qt deemed satisfactory as a whole by all means let some modifications be suggested, . discussed and adopted by tbe various Freezing Companies throughout the colony as soon as possible.

Conbition on Arrival. During 1890, from causes not definitely ascertainable, a larger proportion than usual of the cargoes arriving from New Zealand came to hand lv somewhat unsatisfactory condition. Possible explanations of this state of affairs may be found in one or other of the following directions, vifc.:—<l) tbe hurried manner in wbich many, of tbe cargoes are reported to have been in whole or in part, transferred from the freezing works and stowed on board; <2jf the una voidable delays attending the shipment of others; (3) the incomplete cooling down of freeziug chambers on bo§rd the steamers prior to taking in cjwgd; (4) defects in insulation of currying vessels; and, (5) slowness of discharge'in London owing to labor difficulties. These faults or defects having, however, been recognised, aud, so far as practicable, remedied, the condition of thji* arrivals during the last quarter of the past year became much more satisfactory. ~ The Lloyd's "all risks" clauses upon' insurance policies having been prabticaily adopted by the leading Colohjj_, Insurance Companies, shippers should now be able to insist upon them being Inserted In all their policies without any additional expense. For the guidance of •nippers we repeat these clauses as embodied in our previous Annual Review, via.:—" To pay average on each carcase whether the damage be caused by fls 'of the sea or not, this cy being an insurance against '. loss, damage or deterioration from any cause whatever. With leave to call,at ports or places on the passage Intermediate or otherwise for any purpose whatever, and with all liberties as per bHi' of lading. Including all risk ot craft and/or boats and/or laud carriage by rai.weyor.other conveyance from slaughtering; yards to freezing works ashore or afioar, and including risk of freezing, and whilst at slaughtering yards and/or on hc&rd freezing hulk and/or at freezing work* and/or In warehouse and/or in shed X" dyer on the wharf awaiting shipment, eluding risk of conveyance and whilst inj, vessel or vessels hulk or hulks from Qt&ports. ' Including all transhipments mm or from craft aud/or lighters aud/or bulk and/or coasting vessels and/or homeward bound vessel or vessels. Including whilst on board homeward bound vessel. and until safely delivered into consignees' warehouses, whether delivered there by rail, road or craft. luciudiug storage at port of discharge for not exceeding sixty days." With respect to the rate charged lor insuring under these lerjns,,we> may add that a further reduction has been effected during 1890, and that the cost is now 60s per cent, against *'aUrisks" by steamers. , Tne .existing division of responsibility In respect of condition as between tbe Refrigerating .Companies and the shipowners appears to coll for some alteration, and a solution of the difficulty may not improbably be found in the risk of condition .being undertaken entirely by the shipowners, they alone being iv the position .fully to superintend the matter at the beginning of the voyage, throughout its course and during discharge. With such efficient control us would thereby be obtained a reduction in the percentage of damaged carcases, and subsequently iv the 'cost of insurance might reasonably be looked for.: The most natural arrangement would be that the rates of freight should be so fixed as to include insurance against "all risks" on the lines laid dow_ above.

[After some remarks on "Forward Sales" On a C. F. aud L basis, in which it is'urged that a general grading scheme JgvoUld do much towards fostering forward business, Messrs Weddel point out that no change of moment iv charges has recently been effected. The large stocks 'bapve'-iade storage rates firm, and the increased cost of labor, the result ot the Ifite'—trlke, has made any reduction iv --udliug expenses unobcaiuable. So long stowage arrangements are main taint, d tnj barrier remains to the Reduction of the Loudon charges.]

'." Vessels Engag_d in the Trade. I'iThe'additions made to the fleets have '-rcreased the carrying capacity compared With former years as follows:—la 183 d there were 71 Vessels with a carrying Rapacity of 1,316,000 carcases and a maxi''ffism - importing capacity of 3,391,000 '—ureases. In 1890 there were 75 vessels '-with a carrying capacity each voyage of '1,850,000 carcases aud a maximum Annual ■• importing capacity of 4,43i,0U0 -fcareases. Included in the above there were i*i-n Jailers and tweuty-ono steamers trad 'lug between New"Zealand and Loudon direct with a carrying capacity of 123,009 753,000 carcases respectively, : _nd-with a maximum annual iniportlug capacity together of carcases, lv addition there were eleven steamers tradSbg between New Zealatid and Australia and Ltmduu with a maximum importing /Capacity *>f 858,000 carcases.] V_* ! _t is inauifesc that iv oraer to provide cargoes for the foregoing steamers a v«jfy material increase indeed will be re;duiredin the number of carcases shipped. ;%nie resources of the River Plate district • have been by no means strained as yet; •-Australian exportation will, according to ■present promises,, exhibit an early expansion; while New Zealand flocks, which "bave hitherto more than maintained their aggregate numbers, despite the heavy aiiuuui export, can doubtless withstand -farther drafts without being subjected to "Umdue depletion. Although the number tifiweep available in these various sourcss Of Supply may readily furnish the necessary Cargoes, the difficulties, ou the one bind, of maintaining the quality, and, on the other,of immediately hading profitable "outlets for them all if shipped, appear to be meanwhile not easy of solution, unless, indeed, by a reduction in tne cost of transit a lower range of values on the -Ho-don market can still be made to leave a satisfactory net result to growers. - : As regards New Zealand mutton, the 'reduced level of steam freights throughout tbe world should now enable shipSrners to carry frozen meat from the lony to London at a freight of Id per lb, .and still leave them a fair margin of profit. - -"Lambs — Excessive supplies, inferior .quality and disappointing prices characterised the trade of 1890— each one of these -features being in marked contrast to those of 1889. As regards supplies, it has been found impracticable to determine with certainty the respective totals of sheep and lambs received into London owing to the manner in which colonial bills of lading are frequently drawn up, but lb is interesting to note the information supplied on this subject by Messrs P. Cunningham and Co., of Christchurch, New Zealand. These statistics show a total of 276,660 lambs frozen for export from New Zealand during the twelve months ended 30th afpne, 1890, as against only 132,615 for the year ended SOth June, 1889. To increase In one year by over 100 percent, the supplies forwarded to meet a trade of comparatively restricted character partook of the nature of a risky experiment. The unfavorable season of 188990 in ihe colony B-as doubtless answerable for the falling 'Win quality as compared with tbat of the ■ srevious season, but in view of the large 'inantity shipped it was doubly unforfenate that the quality was not better. There could be but one result to so adverse of circumstances-dlsap-z+tC.+m*nt. to all concerned. It may, howfeif SofSbly be anticipated thaV with JS wason,andacareful maintenance of

the quality of what Is shipped, the exportation of New Zealand lamb will presently resume its remunerative character. [Here follow remarks on the beef trade.] General Outlook. Two or three very material points call for comment in considering the probabilities of supply and demand. in the near future. In the first place stands the fact that home flocks and herds, after decreasing steadily for the past. ten or twelve years, both actually and relatively to their proportion to the population, have suddenly increase-) to a marked extent according to the official agricultural returns just published. Furthermore, the average weight per head both of cattle and sheep in tbe British Isles is probably several pounds heavier than in 1830, as a result of the excellent and abundant supply of food throughout the greater part of the country. Next in importance to the increase of home flocks and herds is tbe rapid and extensive development of the trade in American beef witnessed since 1887.

[The following are a number of statistics in connection with the Euglish meat trade :—ln the middle of 1800 the population of the United Kingdom was 33,187,000, and the number of sheep and lambs in June of that year was 31,667,003, while the number assumed to be slaughtered, i.e.. 40 per cent, of those enumerated, was 12,667,000. The number of sheep imported alive during the year was 400,000. The number of carcases of frozen mutton imported was 3,101.590. Of this number 1,562,647 came from New Zealand, 1,320,944 from the Argentine Republic, and 210,831 from Australia. The total number oi cattle in the United Kingdom on June 4th, 1890, was 10,789,853, and the total import of beef for the year ending December3lst, 1890, live stock being converted into dead weight, was estimated to be s,Boo,ooojwts.

The prospects of the frozen mutton trade, iv the early future, are perhaps somewhat less uncertain than they were at the daie of our last annual review, but they are not, on the whole, more reassuring. The marked increase in numbers and average weight per head of the flocks and herds in Great Britain aud Ireland, revealed by the agricultural returns for 1890, and their earlier maturity, will admit of a larger quantity of home-killed meat being brought to market than was formerly practicable. The increase represents au addition to the available supplies of meat of three times as much as the entire volume of frozen meat importations in 1890. Arrivals of American beef also have apparently entered upon a stage of fresh growth, tbe limits of which it is at present quite impossible to estimate. These two items are so important in their bearing upon the meat trade as a whole, that they cannot but influence more or less directly the course of values of frozen meats. These cau, however, be laid down in the Loudon market at prices wnich leave a fair margin of profit for growers and are still much lower than the minimum cost of Home-fed beef and mutton or American beef, so that frozen meats must always command a market on the ground of cheapness alone. The great masses of the population must, as a rule, have cheap beef or mutton or use none at all. It is only wheu trade is really brisk and wages high, as has been the case during tbe past two years, that they can afford to buy fresh killed meat. Owing iv part to the low prices ruling during 1836, 1887 and 1833 and lv pare to the good wages obtainable in 1839 and 1890, the demand for frozen mutton has extended in such a manner that the steady growth in supplies has not hitherto been found to be unmanageable—except very temporarily on one or two occasions. If earnings be maintained at their present level, there seems to be no doubo cbac the rate of increase in importations Witnessed during the past four or five years might be safely kept up. The chief consideration appears to be that of supplies iv the near future. The large number of new vessels quite recently fitted up for the New Zealand aud Kiver Plate trade have not yeb had time to influence the supplies to anything like the extent it is likely to be affected during 1890. This year's total import may be taken as 3,100,000 carcases, with a fleet of seventy-oue vessels, having a maximum carrying capacity of 3,391,000 carcases. Next year there will be seveuty-flve vessels available, with a maximum carrying capacity of 4,132,000 carcases per | annum. If that quantity of mutton (or its equivalent) is received it seems unreasonable to suppose that it will not test the demand to ics utmost extent. The suddeuness of the probable increase is its most disquieting feature. If spread over a year or two, or if a good trade in the country were assured, and there were no large supplies of home-fed meat, such a growth of importations might be viewed with more equauimity, The past history of this business has, however, been one of frequent surprises, and such things as loss of flocks through the severity of the winter, aud the continuance or fresh imposition of restrictions on the import of loreum live stock, may upset calculations based upon the best available statistics.