FROZEIN PRODUCE LETTER.

Press, Volume L, Issue 14919, 18 March 1914, Page 3

FROZEIN PRODUCE LETTER.

THE MEAT SITUATION

AN IMPORTANT COMBINATION

FROZEN MEAT

(FROM OCR STKCIAL CORRESPONDENT.) LONDON, February G. The general idea which the New Zealand producer has, I believe, been gaining, so far, of the possibilities of the frozen meat market in Great Britain this year is that of persistently rising; prices, due in a large mensure to the new American demand. It is only right that I should address a word of caution to those who have let this new factor loom too large in their vision. Those who know most about the trade hero are still, all of them, in the greatest uncertainty as to what the United States business will mean to the market, and for the present one ought to attach greater weight to the trend of trade in the United Kingdom in estimating what will be the eventual course of the market this year. As a matter of fact, the indications are not good. The trade cycle is thought to have brought industrial prosperity on to the wane; there are many cotton workers out of employment in tho North, and the general trend of money is from industry into stocks. The frozen meat distributing houses report everywhere that the demand is falling off very considerably, and has been doing so ever since Christinas. As I have previously said, frozen meat retailing shops have been closed to the tune of many hundreds throughout the country, both on the part of the multiple-shop companies and small traders, and the retailer is beginning to realise that tho good time for which he lias waited now for two years is not to come, and that ho must make up by frugal and skilful management. As regards the present market, I am afraid that the policy of the New Zealander lias, so far, put him at a disadvantage with tho Australian this year. Tho prices asked in New Zealand have been too high for the acceptance of tho buyer here, who knows the grave uncertainties of the market, and who fared so badly on c.i.f. trade last year. In contrast with the bulk of the New Zealand meat coming forward on shippers' account, and rather late, too, there is the much freer dealing which has taken place in Austra-) lian mutton and lamb, which has nearly all been sold forward. As a' matter of fact, Australian lambs are of quite a respectable quality mis year, and at the margin of over a penny from New Zealands, thej- have been making the trade, and seem likely to do so even when more New Zealands are in evidence. With regard to New Zealand arrivals, reports which reach mc as to quality are invariably rood, and the dressing is also quite satisfactory. A MEAT SCARE. The frozen meat trade has just been the victim of another furious attack from a weekly journal named tho "Mew Witness,"' an organ which figured in the "Marconi Scandal." Tho occasion for the attack was the discovery in Smithfield market of a number of quarters of frozen beef affected with the nodule trouble, and these turned out to be part of an unfortunate shipment from Victoria, a State which is not at all a large beef exporter. It seems that, owing to some failure in the inspection arrangements, the forequarters were wrongly cut, the whole of the briskot not being removed.. How this should, occur under the Commonwealth inspection arrangements seems a mystery, "someone had blundered." However, possibly it was because the public has been so often scared that it refused to buy less beef after this "revelation. *' The lesson, none the less, should be taken well to heart by Australia and others. JAMES NELSON-RIVER PLATE COMBINE. The chief talk of the frozen meat market has lately centred round the spectacular amalgamation of the two large firms, the River Plate Fresh Meat Company, Limited, and James I Nelson and Sons, Limited, two enterprises whoso capital togetner amounts to a million sterling, and whose daily killing and freezing capacity at their two works at Campana (R.Pi Co.) and Las Palmas (Nelson's) practically amounts to 10,000 sheep and lambs and nearly 2000 cattle. . The circular which was issued to shareholders a- lew days ago announcing the combination of'interests had to be published at once in advance of the completi6n of financial arrangements owing to the rumour of the change getting abroad and, of course, affecting the interests of shareholders, whose scrip rapidly rose in value. Both of the companies are large distributers and retailers ot frozen meat in the United Kingdom, Nelson's owning well over a thousand shops and the River Plate Company about a third of that number. Many of these shops have, of course, in the past been in very keen competition with one another. It is no uncommon sight to see in a single thoroughfare in the working-class or other part of a town, two., three, or even more 6hops of competing companies—Fletcher's, Nelson's, Rivei Plate, Argenta, Eastman's, or some other concerns —all in a hundred yards or co, almost next door to each other. What the profits of some of these shops must have been reduced to in the last difficult year, or how far they have been turned into losses, these companies alone know, and the seven hundred or so that have been said to have been closed fairly recently all over the country, because of difficult times, is the outward sign of this. Nelson's and River Plate will now be able to co-operate instead of compete; it will mean less 6hops. Wnat will that mean to the total outDut or frozen meat? Last year the two companies, Nelson's and the River Plate, together exported 335,500 frozen sheep and lambs. 488 000 frozen beef quarters, and 476.000 chilled beef quarters, as compared with 565,000 sheep and lambs. 694,000 frozen beef quarters, and 487,000 chilled beef quarters in 1912. The falling off is evidence of the great stress of competition from the American Trust-owned works, La Plata exporting 1,325,000 chilled beef quarters in 1913, as against 870,000 in 1912, 152,000 frozen quarters as against twice that number in 1912, and 724.000 sheep and lambs, a drop from 1,088,000 of the year before, but still very much bigger figures than those of the P'nglish-owned companies. La Blanea had a somewhat similar record, with an output of 682.000 chilled beef quarters, against 437,000 in 1912. The total output of all tho thirteen freezing works operating in South America last year was 2,516,000 frozen sheep and lambs, an increase of 429,000 on 1912, 1,527.000 frozen beef quarters, a falling off of 559.000 from 1912, and 3,006,000 chilled beef quarters, an increase of 737,000 chilled quarters on 1912, the combined increase of La Plata and La Blanea works just equalling this total rise.