FROZEN MEAT TRADE.

Press, Volume LXV, Issue 13596, 3 December 1909, Page 3

FROZEN MEAT TRADE.

AN IMPROVED OUTLOOK

THE MORAL FOR NEW ZEALAND

(FROM OCR OWN CORRESPONDENT.) LONDON, October 22. An entire change has come over the frozen moat market since October Ist. At that time Canterbury mutton, tor prime quality, -was 3fd per Ib; it is now 4sd. North Island mutton has risen from 3id to 4 o-16d per lb. Canterbury lambs, which wore 3sd to 3_d, are now 4Jd, and North Island lambs have gone from 3 o-Hid to 4|d per lb. The market has recovered so that the price of mutton is higher than it has been for any period during this year, and Canterbury lambs has returned to the highest price ruling since March. The heavy stocks which were supposed t > be the cause of the very low prices anil the extraordinary panic which seizeit the market and sent prices down on August 20th to _gd per lb for best Canterbury sheep, to 2 5-16 d for North Island descriptions, and from 2£d to 2j}d for Canterbury lambs, have been worked off. No other cause can be assigned for the great change in the market. There is no question but that the Dominion sent extraordinary shipments, which arrived here during the months of June and July. The arrivals for June was something like 900,000, and for July 700,000 carcases, and storage was very difficult to obtain. At tlie same time, a great many doubted whether the stores were blocked with frozen meat. It was well known that the refrigerator space in London was taken up with a great many other products, such as hops, butter, cheese, etc., and there was, therefore, €he greater necessity for arriving at the stocks of meat held in London. This was urged by Mr Gilbert Anderson, at ths meeting of importers, as constituting the basis of work in fixing prices. Although several efforts have been made to get the importers to agree to allow the stocks to be declared by the stores, nothing has come of it. It cannot be denied that the low prices which were accepted during July, August and September, created a great demand, but that the better class of meat has been needlessly sacrificed goes without saying. NO FEAR. OF OVER-PRODUCTION. The position at any rate has so altered that the fear of over-production by the Dominion is entirely removed, and it would seem that, given meat at the prices sold this year, such as Australian mutton down to 2d, an enormous quantity of meat can go into consumption. This is really understood when one takes into consideration the j spending power of the millions of this I country. At a high price the number of people who can buy meat is restricted, as the price is lowered the numbers who can buy meat are increased enormously. This points to the conclusion that if it will pay Australian growers to take a low price for tneir meat, then the consuming powers have not yet been exhausted, and that the low-class meat need mot interfere wfth the sale of the better class. The Aus-. tralian mutton, and to some extent the North Island mutton and lamb, which went into consumption this year at low prices, may be said to have opened up new sources of demand, but that any gcod is coming from the sacrifice of ffne better class meat from New Zealand is open to very grave doubt. The only satisfaction that can be gathered from the present position is that the old stock,, if not entirely cleared out, are yet within visible distance of shortage, and the trade is nowwaiting for the arrival of fresh supplies from Australasia. THE. RIVER PLATE TRADE, One thing that has undoubtedly tendfed to the advance in price has been | the shortened supplies from the River Plate both in mutton and lamb. It still I remains to be seen whether they were withdrawn from shipment because of tho low prices, and supplies have yet to come from that quarter, or whether, as many believe, it has been proved that the River Plate is not going to increase its shipments of mutton, and that the heavy shipments of lamb constituted l merely a spasmodic effort owing to tho very unfavourable season in prospect'in consequence of the drought. It is certainly something to be thankful for that the trade is not faced with the depressing outlook of a month ago, when it seemed as if for next year it was going to be burdened by the large quantities of meat already in store. From careful enquiries made it seems that no one has specially profited by this suddfen advance. There was no cornering of the market nor has any speculator been known to have succeeded in getting hold of a large stock at low prices. Home-grown mutton is selling at low prices. The quantity of hill lamb from the Northern markets is very great, and this meat is selling at prices not much in advance of frozen meet. THE MORAL FOR NEW ZEALAND. While it must be admitted that the New Zealand farmer and freezing works have to send their meat away when it is ready, and there is not much advantage in holding meat back in the early months of the season such as December, January, February, and March, at that time, however, some estimate should be available as to what the quantities are likely to be for the remainder of the season. Shipments for the months of April and May should not be rushed forward as they were this year, and the following months left with virtually no stocks. For instance, the shipments made in April were 278,000 carcases of mutton and 527,000 carcases of lamb, a total of 805,000. In May they numbered 261,000 carcases of mutton and 674,000 carcases of lamb, a total of 935,000. In June, 107,000 carcases of mutton and 303,000 carcases of lamb were shipped, totalling 410,000, or less than half that of May. In July, 155,000 carcases of mutton and 241,000 carcases of lamb were sent, totalling 396,000; in August, 64,000 carcases of j mutton and 116,000 carcases of lamb, I totalling 180,000; in September 67,009 i carcases of mutton and 75,000 carcases of lamb, totalling 142,000. It would have been cheaper to hold the meat in New Zealand. It would have arrived in good condition instead of being taken out of store in London in an off-coloured state, and if the shipments had been spread over the four following months, New Zealand meat could have been sold at Id per lb more. Farmers should remember that not only is New Zealand mutton a main article of consumption, but lamb is in exactly the same position. While there may be larger quantities of lamb consumed during the summer months, there is a trade all the year round for the small joint which is supplied by the New Zealand product. This, however, is going back to the old question, which has been reiterated so often, namely the regulation of shipments.