MEAT EXPORT TRADE.

Press, Volume LI, Issue 15219, 5 March 1915, Page 8

MEAT EXPORT TRADE.

THE NEW 'DETELOPMEXT.

A CERTAIN MARKET AT GOOD

PRICES

(m our spfx:iAL reporter.)

The taking over by tho Government of all the meat exported from NewZealand at a fixed iC ale of prices is a development of the trade that is

naturally exciting coiuideriiblo interest, especially among sheep-farmers. Tho publication of the list of prices to bi> paid for all classes of meat tor export, should, however, do away with any doubts there may have b.-en as to whether the market would be prejudicially affected for farmers' fat stock. The prices, it may be mentioned, aro those to be paid when the meat is placed on board the steamer, and are equivalent to about a halfponnv less ill the works. They are a litti'e less than the extreme rau? s paid by oxporters just before the announcement

that the "freezing works were to close

! down, on account of the shortage in shipping, wiieii .every -effort was being niade to seeuro stOL*k to fill the remaining space available. The prices are,, however, better than those of last year, and fuitnermoro, the taking over of the meat by tho Government secures a certain market for the season, and relieves it from the fluctuations that from time to time take place according to tlie demand and prices in London. What the'"over-all" prices will behave not, wo aro informed, yot been worli-jd out, but at least they will mean tnat for a 361b lamb a farmer should receive lHs to 19s.

So far as the effect upon the meat trade generally is concerned, it is not considered that there will be any material change at this end. The exporters will naturally desire tnat thoir , connexions will be maintained as far as possible, and this position was considered at the recent, conference to bo a reasonable one, considering that the freezing companies and export, firms have played -in important part in building up the frozen meat trade, and that their operations result in fanners being paid promptly as they sell their stock, and. relieving them of all risk. Buying of stock will, therefore, go on as usual, but on a closer margin. Farmers will, of course, have the option of sendjng their own stock to the works, using their own judgment as to whether the price they will receive f.o.b. for their meat will be better than the exporters can offer for the stock on the- hoof- At the same time, it should be pointed out that payment will not be made for meat until it is placed on board ship, and that insurance up till then will have to be effected by the owners of. the meat. Under these circumstances,, therefore, it does not appear as if there will be much change in the position so far as the relations between the farmers and exporters are concerned, and no doubt the competition will be sufficiently keen to secure to farmers prices that they will be fully satisfied with. : The most serious position so far as tho' export firms are concerned is the dislocation ,of their business at tho London end. The taking over of all the meat by the Government ends all the contracts the exporters have with their clients at Homo, as anj surplus meat, over and above the requirements for the Army, will be placed upon the market b.y tho Home Government, prcfbably ■with restrictions as to distributing prices. This will not only ensure.supplies to British consumers, but will provent the market being exploited to their disadvantage, should a shortage in the food supply at Home occur.