THE FROZEN MEAT TRADE

Press, Volume LIX, Issue 11245, 10 April 1902, Page 3

THE FROZEN MEAT TRADE

HOW THE PRESENT SYSTEM OOULD BE IMPROVED.

ARGENTINE COMPETITION,

(FROM OTJK OWN CORRESPONDENT.) LONDON, February 28. In "British Refrigeration" there is a long account of an interview -with Mr George Gocdjir, one of the firm of Messrs W. Weddel and Company. Interrogated as to the reason why the frozen meat trade has been dull of late, Mr Goodsir said: "Shippers on the other side are asking more money than dealers on this side are prepared to pay. They want a havf-peony par .pound more for 'New ZeaCand nmtiton than die prices now ruling in London. So long as this continues, there must, I fear, be restricted selling." Mr Goodsir added that the prices were not poor; as compared wMx figures of the past four years ■they were up to a fair average. He held that the colonial complaints arose very largely from "the sad results of speculative buying, -which lias been increasing at a reckless pace. Inflated prices are given for meat, -without due regard to tihe market conditions in London."

■Mr Gwodsir continued—"One is plad to know* ithat the colonial farmer has a stroke of luck at times, tot luck of tihis kind, I fear, has no stability about it, and is liaible to foe followed Iby disasts > correspondingly severe. Ot course this state of affairs arises from the aJbuse of the forward system olf business, wibich my firm originated and developed some years ago, and without which -the trade, as a matter. of fact, coutd hardly 'have survived. After a certain stage in its development centralisation became absctately essential. It <wus impossMe for each producer, ■under modern competitive conditions to continue his individual consignments to an. oversea market, 10,000 mHes away. The best way to carry on a remunerative ibasis was to take his profit on the spot, and to, leave it to the large dealer or distributor here to incur the risik of market fluctuations. The system may have its drawbacks, arising, as I : haye said, from reckless speculation, !but it is only in some such way that the business can be -properly conducted, having regard to its present magnitude. In America, botfii North and South, it has been -universally adopted. No American farmer ever iihinks of talcing the responsibility of sending his "beef to this market. Noftfh and South America are far the strongest competitors of Australia and Nerw Zealand in tMsline, ■so the colonial farmers -cannot do Ibotter than copy the beat methods of their rivals. Not only does forward selling relieve the colonial fanner from 'the risks of a distant and fluctuating market, but it enables the big retailers on iMs sxto to complete their buying arrangemente we£l in advance of each season's trade."

The interviewer was informed fov Mr Goodsir {hat IJ9OO New Zealand lambs had just feeen sold by him to-i large retailer in the (Ntotfh oif England, who wanted to secure a supply 'before issuing ihis circulars and price list "for the spiing trade. "These L<umfoe are Still haippiiy nilbblmg their succulent pastures in far off Otago, sublimely unaware of the fact that their carcases are already destined to grace sundry dinner tables in tlhe neighbourhood of Liverpool." Mr Goodsir heed that the increased Argentine competition, which- his firm had predicted for the past six years, "had now come and would prove a serious •matter co far as Nctv Zeafand and Australia were concerned." He attributed the great success of the Argentine companies to the fo-1- , lowing faota:— "They own the works, ichaift«r or own the steamers, have their own stores here, work together at both sides, and so, from beginning to end, they kee» diir&ct control of tlhe wihble trade. In New Zealand, on the other hand,, owing very largely to the huge number of farmers and sm&l dealers over there, the cargoes ars shipped by a great many different people, and m steamers over wihioh they 'have no control. They; come to as many different consignees on this side, among whom it is impossible to 'have any common course of action in seKing. The result is uclbridled competition, which seriously prejudices the trade. In Australia this competition ihas lieen reduced to some extenit'in recenlfc years, ibecause there are now very few squatters who ship thence on their own account, nearly,all tihe produce coming forward en account of the freezing works. But in.. New Zealand the evil is still The profits that ought to belong to fhe producer and freezing companies are thus, to a very large extent, frittered away." Sir Goodsir advocated an improved meihod of discharging New Zealand mixed cargoes. He said: —"1 want merchants and shipowners to realise that it- would be far bitter to discharge the cargo wholeBale into a .proper srtore for sorting, and then to allow 'tibe various consignees' to draw it thenoe, instead of from the ship. The result -would be quicker despatch, much less exposure, and less delay in getting delivery. But for the vested interests to bs overcome, a scheme of this kind would -have toeen in operaitiwn long ago." In conclusion, Jdr Goodsir expressed the opinion that the frozen meat trade was oiilv in its infancy. "It contains vast possibilities, nob "only in connection with the development of the trade in this country, and in oth-er European countries, but in connection also with South Africa, and possibly with countries in the Par East, and also for army and navy operations throughout the whole world. The old unreasoning >prejudice against- frozen produce is dying out very rapidly, and the nesit few yeais wfll undoubtedly witness an enomnouS increase in the world's demand."