THE FROZEN MEAT TRADE.

Press, Volume LIV, Issue 9834, 17 September 1897, Page 3

THE FROZEN MEAT TRADE.

THE EXPORT OF LAMB COXFBRRNCE. ; A Conference took place at the A. and P. Association rooms yesterday between a SubCommittee of the Association and tht? Directors of the Freezing Companies on the i Question of establishing a close season in | respect of the export ot frozen lamb. The Conference was the result of the discussion which ensued a motion by Mr Geo. Gould at the last meeting of the Committee " of the Canterbury A. and P. Association There were present —A. and P. Committee, Messra D. McMillan (chairman), W. HenI derson, G.Jameson, G. Gould, E. G. Staveley and H. Overton; Freezing Companies: Messrs J. Grigg, S. Garforth, J. Deans, and J. T. Ford, Canterbury Frozen Meat Company: Mr Gilbert Auderson, Clmstchnrch Meat Freezing Company; and Mr A. H. TurnbulL The Chairman* said he had to thank the deputation for being good enough to meet the Committee that morning. He explained that the business atose out of a motion at the last meeting of the Committee of the A. and P. Association to the effect that lambs exported after April 50th should be branded as teg 3. After discussion, however, a Sub-Committee was set up to and confer with the Freezing Companies on the subject. The question was an important one, and the more it was looked at the greater appeared to be the difficulties attending it. The lambing season extended over three months, so that the early lambs would be going as tegs before the later ones could be fairly offered. It was admitted on all sides that something needed to be done. The lambing business had got into a very demoralised state, and if they effected any improvement they would be well repaid for the action now being taken. Mr Gould had received a letter from Mr Reid of Nelson Bros., which no doubt would be interesting. He would ask Mr Gould to introduce the business. Mr G. Gould said the reason it devolved upon him to say something was because he brought the matter before the Committee of the A. and P. Association. He was rather at a loss to know what course to take, but it appeared to him that there was room for improvement. In the first place he moved that there should be a close season for six months in the export of frozen lamb, but, acting on the suggestion of other members, he withdrew that in favoxir of branding all lambe a 9 tegs after 30th April, as it appeared to him that the large lambs being sent Home were scarcely worth branding as prime Canterbury lamb. He had heard a great deal about the subject since he had introduced it, and a very great proportion of farmers who had spoken to him were in favour of something b?ing done. As to what that should be there was a great divergence of opinion. He had wondered whether it would be advisable to establish a short close season, say for two months, the idea being that it would be a definite termination of the lamb season, and after that short close season to start shipping tegs, which, h6 understood, would meet the requirements of the markets, from what Mr Gardiner and others had said. What was wanted was tegs of 461b and over. After the end of April there would be very few lambs which would not meet that weight. He had a letter from Messrs Nelson Bros, to Mr Roid, which bore out that idea. The letter stated that " the question of lambs has become a very serious one, as many breeders will this year discover to their sorrow. To put the points shortly—lst, no lambs should be killed after the 31et March ; 2nd, they should not be shipped later than the 15th April; 3rd, weights have become much too heavy, the nearer they are to 361b the better, and first class weights should not exceed 401b, say 321b to 401b. The reason for this is clear. The butcher buys from us at per lb, and usually sells by the quarter, and he can get no more for the quarter of a 481b lamb than he can for a 3616, and frequently a purchaser prefers the smaller quarter, as the large ones look too much like mutton." Another aspect of the question he would like to touch upon, and that was the effect on the flocks of shipping lambs so late in the season. They were practically shipping hoggets. Most people who attended the markets would agree that the flocks were deteriorating. One of the arguraeuts used was.that if the farmers had not shipped their lambs late they would have starved. This was not altogether a sound argument, for as a matter of fact the good lambs and hoggets had been sent away, and in their stead the place had been flooded with all sorts of mongrel-bred sheep from all over the island. They had to be fed, and some day would go away as pnme Canterbury mutton, but it was doubtful whether they would ever take the place of the good lambs which had been sent. The Chairman* said that no resolution would be passed, but the gentlemen present were invited to speak on the subject. Mr Grigg said that all the farmers were indebted to Mr Gould for having introduced the matter. At the same time, he did not think Mr Gould's proposals would be practicable. He would first point out what had evidently impressed Mr Gould and most intelligent farmers in Canterbury, that this year there had been evidence that late shipments of lambs would be a very great failure, but that evidence had only just come to hand. It was not Lore last nor any former years. Perhaps he had been one of the largest shippers of late latnb3 or tegs, and he could confidently say that nothing had paid him better. Because this year there had been a failure did it prove that they were to take alarm at the first inkling and drop an extremely profitable business? The trade was a profitable one, and like all such was becoming greater and greater, and this year would have been the largest output of lambs, and the market had been glutted. But there was another thing which had tended to produce low prices. Everyone here, and a large number of people in England, anticipated that the millions of people in England in the Jubilee months would consume large quantities of lamb, and many here held their lambs to reach the market just before the Jubilee week. What was not anticipated was that there was a large number of speculators of the same mind, who bought up whole consignments of lambs, and these came into competition with the shipments from here for Jubilee week. This was a blow and a disappointment, and gave the market a downwards turn. The great point for the farmer was whether he was or was not to be alarmed over an occurrence which had taken place once in about ten years. Whatever there was in it, he had come to the conclusion not to ship lambs as lambs after the beginning of April. After then it would j be better to keep the lambs on until they became tegs. They were indebted to an able letter from Mr Gardiner, as a consequence of Mr GouM'a motion, and that letter admirably put forward the position in England, which was what was wanted to be known in addition to local information. As to a close season, and ceasing to ship lambs after until they became tegs, he was confident that branding had not much to do with the value of the sales in. London. It was not calico but lamb and mutton which was being bought. The only reason for any particular brand was for the sale of c.i.f. cargoes, because they could be delivered according to the description and marks upon the carcases at the different freezing worke. As to the London sales the brands were of trifling value, for as far as the butcher wfcs concerned the rag round the sheep had little to do with it. On the question of branding there had been an inquiry in London, and it was proposed that the produce should be branded as from a particular colony. That analysed meant nothing more nor less than a movement in favour of the English producer. It would be no advantage to the colonial, for the English producer was very jealous of our best class of mutton, because it came into direct, competition with the English, and sold as that, which was so much better for us, and so much worse for them. We would be silly to do anything which would prevent it being sold as English. There was no cheating about it, because it was better than English. Branding as suggested would be a great disadvantage to the producer. Coming back to the question of what freezing companies should do as freezing companies in the direction of ordering the meat trade, and the way in which farmers -were to sell their produce, he felt it was quite !>eyond their place to interfere. Speaking for his own Company it was siuiply a grist mill as it were and took what the fanners sent. It was for the farmer to consider if it were advantageous to send in lamb, mutton, or tegs at any particular time. It would not be in the interests of the fanners or the Company th»t the CorDpanj should do aejthinj else.

The proposal wai so impracticable that it was hardly worth considering. As the Chairman had pointed out there were three months or more between the first and laet crop of l.i!iib=, and the last would come in as first-class within asnpposititious close season. He was quite sure no Freexiug Company could consider the matter, it was so distinctly unlike real business. Though the Freezing Companies were alwaj'3 willing to keep up the character for quality of mutton and lamb, to take the arbitrary step proposed would be far beyond what they ought to do. He had noticed it said that supplies of Jamb had been held over from one season and affected prices at the opening of the next. There was nothing in that. He did not think the stale lambs could interfere with the fresh latnbs shipped from here in January, February and March. Shopworn goods were always shop-worn goods, and experience was against the idea advanced, and it need not be taken into ao count.

The Chairman , remarked that while Mr Grigg had compared his Company to a grist mill he had not mentioned the care the Company took in grading, &c. Mr Grigo answered that the Company was most careful with regard to grading both as regarded weights and quality. After carefully going into the business they were now, he believed, giving every satisfaction. For c.i.f. sales it was important that the classes should be carefully graded; for ordinary sales it was not so important. M'- Gilbert Axdkksos said he would prefer that these most acquainted with the raising of stock had spoken, as he looked upon it that it was more a question for farmers than Freezing Companies. At the first blush he was rather taken with Mr Gould's proposal, because he thought we could not too strongly impress upon our farmers the necessity of improved production and getting back to the old Canterbury standard. Looking at the matter carefully he think that the proposals met the case in point. • If it were true, as a great mauy said, that the flocks were not improving, it seemed to him that the selection of the future breeding ewes should be made before any lambs are sent to the freezing works, and not after the best lambs had been culled. He did not think that the adoption of the course proposed, of having a close season, would improve the (locks. He quite agreed with all Mr Grigg had said, especially when he pointed out that the lambing season varied materially. While it would certainly suit all the low-lying and coast farms to have a close season, it would not suit the farmers further inland, nor would it suit the South Canterbury district, whose lambs came in in February and March and ran on till May. If we stopped in April, we should make a gift of the lamb trade to our southern competitors, Otago and Southland, and he did wot think that Canterbury could afford to be so generous as that. In the matter of exports he had taken out the Ggures for the shipment of lambs for 1897. From Lyttelton they were—January 48,239, February 65,383, March 111,891, April 126,514, May 144,727, June 74,539, July 14,484, August 12,522. The total for Canterbury was—January 58,269, Februavy7o,24l, March 121,902, April 136,694, May 168,656, June 92,797, July 17,774, August 15,547. The total exported to the 13th April, 1897, was 387,106, and the grand total to August 31st was 681,880. It would be seen that we only succeeded in getting away 50 per cent, of our lambs up to the end of April, and ho was sure that they would agree with him that it would be impossible for Canterbury during the season we had gone through to carry on the remaining 300,000 lambs in anything like condition. Looking at the matter from the farmers' point of view, it was better to turn the lambs into money. Then there was the question to be looked at of what we could produce and send away. In England out of 3,000,000 sheep they killed 40 per cent, per annum for consumption. The lateet statistics for Canterbury showed 5,196,000, while the exports up to the end of June this year were only 1,283,000. If wo were to go on at the same ratio as England we could clearly double our exports before harming our flocks. Thus he took it for granted that the quality of the stock was not deteriorating, it was clear to him that we could not afford to stop sending away the 50 per cent, of lambs. The small farmer could not afford it, and he was the backbone of the Company he represented. The large farmer might manage to hold over his lambs. It would, however, be impossible for the small one to carry over his stock in anything like condition. The lambs in May and June at the low prices ruling in London were worth half-a-guinea, and the farmer would not lose much at that. It would be better to take that than carry over the stock and take hogget prices of something like 7s or Be. Seeing the name second to none that Canterbury lamb had made in the London market, he would like to see the greater portion of the lambs dropped in Canterbury sent away, and if we required to improve our flocks let us get animals from places where they could produce good ones but could not feed them. He bad noticed that the larger proportion of the lambs sent away in the last few months of this year were sent on farmers' account, they evidently being quite willing to risk the London market. He quite agreed with Mr Grigg about the gradiug and about the effect of stale lambs in the London market. He had prepared a table showing the price of lamb from 1894 to 1897. Owing to a large number of lambs being held for speculative purposes the market opened at 3|d to 4d per lb, but no sooner did the new lambs come in than prices rose to sd, ssd and 6d. The table to which he referred was as under:—

PRICES OF LAMB ON THE BMITHPIELD MARKET. I

In regard to this year, in addition to the disadvantages to which Mr Grigg had referred, it had to be borne in mind that we were hindered by not getting the shipments away early, and in consequence shipments rose, those in March almost 100 per cent, and in April qaite 100 per cent, and in May the largest shipment was made of 144,000 carcases. His idea of this limited trade was that the system of distribution and handling in London was not equal to the business, and the amount of faith of the Canterbury farmer and freezer was something extraordinary. He was willing to send away thousands of pounds worth of stock to be looked after in the most haphazard sort of way. The Freezing Companies took every care with the grading, selection and shipping, but when the meat got to London the farmer trusted—to Providence, he was going to say, bnt he doubted if he did even that. There would be a dozen and one salesmen selling one mutton against another, instead of there being come system of organisation and concentration. He did not believe in monopoly, and he was thoroughly freetrade in the matter of buying and selling, but it did appear to him that we mast import some common sense into the way in which we dealt with our meat in the London market. He would like to see a board of advice established by the mo Canterbury Companies to start with, for he believed that the others would join it. If they were to decide to regulate the prices in the London market, they could do so, for we sent away 75 per cent, of the. meat from tho Australian colonies, and had seveneighths of the lamb trade. It would prevent the batcher from controlling the trade, as he did at present. He might say that his Company had adopted the plan of putting every lamb of over 481b as mutton. He did not think it would do any good to call all the lambs tegs after the 30th April, seeing that many prime lambs did not come in till after that time. It might be well to take advantage of the Shipping Companies' offer to call everything tega over 441b. Mr Statelet—What is your, limit ? Mr Akdebsox—4BU>3. Mr Guigg—Belfast is anything over /J4lbs. Mr Andkrsok—Anything more than that would be a disadvantage to the Canterbury farmer. Mr TORNBiTix said that he was present not so much to speak as to see if some scheme or result might attend the conference which would benefit the farmer as a whole. He quite agreed with the remarks of Mr Grigg, and it was quite likely that some good would result from the Conference to matters outeide those under discussion, lie did not think it would be «gfct or

feasible to brand lambs after the 30th April. Whether anything could be done in the way of prohibiting the freezing of halfbred ewe lambs was another matter which concerned the wool growers. Ever since the freezing industry started the quality of wool had been falling, not with regard to station clips, but with respect to small offerings. It appeared to him that the meat trade was sacrificed for the want of some concerted action. For years we had been increasing our supply and we had not been developing our outlets to the same extent, and the consequence was the present block. It must not be lost sight of that the Argentine and Australia were very keen competitors, but then our meat was of a very different clasa, but what had we done to improve the outlet for it? Nothing at all. He was of opinion that the Canterbury Companies should impose a tax of £d or £d per head for the purposes of a Board of Advice. It was ridiculous the way we were pouring the stuff into the London market, and not attempting to develope the markets of Cardiff and Hull, to the latter of which we could send the heavier and to the former the lighter carcases.

Mr Stavelky said that while Mr Gould deserved every credit for having introduced the matter, it appeared to lum that there were so many different interests involved, and affairs were so complicated it was difficult to see how the scheme would work without unduly pressing on someone. A little too much stress had been laid on the matter of the deterioration or degeneration of the flocks. We had now a great deal more variety, and the expansion of the flocks was also very great, consequent upon breeding for freezing requirements, ana it the proportion was not so large the quality was just as good as it used to be, or very nearly so. While agreeing that the holding of a quantity of stale lambs may not have a serious effect on prices, he had noticed from reports that it had a deleterious effect, and it appeared to him such would have a depressing effect by meeting to some extent the supply the new lambs were meant to fill. Our complaints about the regulation of the trade were metby those from the other side of our failing in the regulation of the supply. According to the table of figures supplied by Mr Anderson, it would appear that, for this J ear at least very little harm would have een done by a short close season.

Mr Jameson said that he was not prepared to suggest a plan for dealing with the question. There was a very great de&l of competition among the salesmen at Home which was not good for the shippers, and if a Conference could be arranged on that matter, and a uniform plan agreed upon, more good would be done than by altering the date of the closing of the lamb season.

Messrs Ovrkton and Garforth agreed with the remarks generally of Messrs Grigg and Anderson.

Mr Deans was also of the opinion that the flocks were not deteriorating. Wβ were only sending the best of them away. Ho did not see how the farmers could be stopped from sending away their lambs. What was wanted was to increase our stocks; the more ewes we could breed and clear out our wether lambs the better it would be for us.

Mr Henderson suggested that the Companies might improve the manner in which the meat was placed before the Home people. He wished to impress on them not to send inferior stuff.

Mr Grigg said that the idea that there could be any control which could judiciously arrange for the sale of the whole output was hopeless, and such would lead to muddle, i defeat, and a huge loss to the producers. He explained how, some years ago, Nelson Bros, tried a similar experiment and found it a failure. They accumulated a large amount of stock, and prices were depressed until the most of it was placed, when prices began to rally. He believed that the natural law of supply and demand would equalise prices, no matter what they might do. One way in which improvement might be made was the establishment of a large storage chamber near the docks, into which cargoes covld be unloaded into cool chambers,, and there the stocks assorted before they were sent away. It would be to the advantage of shippers, insurance Companies, and ship owners, as there would be a finality to the whole thing. Anything in this way to facilitate the trade would be an advantage, and in a letter from Mr Waymouth he learned that something in that way was likely to be done. As to the question of freezing of ewe lambs, he did not think that should trouble them until they began to find a shortage of female stock.

Mr Anderson replied that he did not] want to create a monoply, but all shippers were not like Mr Grigg, who consistently shipped to one man. Many were frequently changing, and the results were not satisfactory. His suggestion was that, if the freezing Companies could, as t it were, register a certain number of salesmen who could be trusted and brought together for the purpose of maintaining prices, the ruinous competition would be avoided. This position might be brought about. by the Companies having a Board of Advice or a staff who would watch and inquire about the markets, and advise these salesmen as to shipments, &c. The great mistake that a number of speculators had fallen into, was that price was everything. The main thing to be remembered was that the trade was started for the benefit of the grower, whose interests must be kept in the foreground. " Mr Tubnbull said that when he made the suggestion about the tax he did not wish to limit the number of consignees. His idea was that the Board should stimulate trade without regulating prices. Mr Jameson explained that efforts had been made to establish a sorting shed, but nothing had been done on account of the

want of unanimity as to what was really wanted.

Mr Anderson asked if, instead of a sorting shed, it would not be better for the freezing Companies to arrange for one shed, and have the whole of the shipments from Canterbury sent there ?

Mr Ovkrton favoured something of that kind, and said that perhaps matters were not so bad as they were six years ago. (Voicrs—" They are worse.") Mr Stavelky was of the opinion that the meat trade could be treated like the perishable commodities of other trades, such ac Danish butter, the regulation of which wae undertaken by a Board ot Advice. Aβ emphasising the importance of th«s lnmb trade to Canterbury he mentioned that in making out the statistics of their /inn he noticed that Canterbury exported a bigger weight in tons of lamb than mutton. Ho would like to see all lambs over 441b branded as tegs and not as prime Canterbury lamb.

Mr Gould said that they had gathered fchis much from the remarks of Mr Grigg and Mr Anderson, that the question was a farmer's one and not a Freezing Company's, and if the farmers wanted any thir.g done they must act for themselves, and force their opinions on the Companies. He rather gathered that those gentlemen looked to the interest of their companies as of first importance. Naturally it would be rather a strange thing for them as Direotors to take any action which would cut off a large source of immediate profit to themselves. He was sure, in spite of all that had been said, that a very great number of farmers were of the opiniou that something should be done, but it would appear that they must take their owii methods to have their opinions carried into effect.

Mr Anderson asked if Mc Gould would be prepared to alter his date to the 313t May for lambs over 401b.

Mr Gould said that from what had fallen from Mr Grigg he gathered that from a farmer's point of view there would be no objection to a short close season.

Mr Gkigg replied that he was trying to show that it would be impracticable. Mr Gould said that Mr Grigg had referred to the letter of Mr Gardiner, and he advocated something of the sort. Mr Grigg —Not a cloao season.

Mr Gould—Well, a definite conclusion of the lamb trade. Mr Grigg had said it was lamb aud not rags that was bought at Home, and the fact of the carcases being branded as tegs on the bags would not have much effect when dealing with the stuff itself. He (Mr Gould) believed that if a close season were started their hands would be strengthened, and by causing a break it might assist them in getting the stuff sold as tegs as well as branded as such. He did not regret having brought the matter up, for if it had done nothing more it had brought about an interesting discussion out of which some good might result. Mr Stavrley said that Mr Gardiner had remarked that the want of finality of the lamb season was detrimental to the trade. There was no season; the word was a mis* nomer.

The Chairman said that he thought that no good would result from their trying to reduce or curtail their exports ; they must increase them by every means, and if they wore not in the right road with regard to their lambs they must try and improve their methods. The freezing companies must go on exporting as much as possible. He desired to thank the deputation for meeting the Committee and giving them so much valuable information, T"*l—t ntv-.~—Arfinjva siT/\CJ— 'f" 1 «*tf.*» n. vnf.O At

The proceedings closed with a vote of thanks to the Chairman.

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