GOVERNMENT'S ACTION DISCUSSED.

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

GOVERNMENT'S ACTION DISCUSSED.

There were few farmers in town yesterday, but one or,,two who were seen by a representative of "The Press? were very undecided as to what' to sa- about the matter, apparently having had time to think it out. The only decided opinion expressed was an adverse one, and the giver of it heartily wished that things had been left as they were, as he considered that the farmers were going to lose over the transaction. A COMPARISON. This, however, is quite contrary to the opinions of business men connected with the meat trade in town who regard the scheme as a thoroughly workable one, though they admit that they expect to hear some criticism. "Aβ far as the range of,prices as agreed to by the Imperial Government is concerned,"' he said, "I think they are framed on a very liberal scale. ■ Take,' for example, the price the Imperial Government is paying for prime lamb, s|d per lb. This is equal, according to my calculations, to a price of 6|d to 7d per lb over-all. The way I arrive at that conclusion is this: The Government pay 51 d per lb for the bare meal f.0.b.; the skin and fat on a 361b lamb should be worth 13d to'2d per lb of the lamb's weight. If you add the l£d to sj}d it equals at least 7gd per lb. The cost of freezing. insurance in the works and putting the meat on board is, T understand, about id per lb, which would leave an over-all price of about 6|d to 6ld.per lb. Before, the Canterbury Freezing Works partially closed down the current quowuion vor-i'rime lamb Vas 6|d over-all, so that we may say that the farmers are at least in no worse:a position than they were before the Imperial Government decided to take all the Dominion's nieat. , THE WEAK SPOT. "As far as wether and ewo mutton and beef are concerned, I think that a comparison will show that the producers are very much in the same position as they were before. The weak spot in the scheme to my mind is that the .larger freezing buyers have received from the companies—and naturally so —the option of the greater portion of the available space at the works, therefore the individual farmer at the pre* sent time cannot apparently send his sheep and lambs into the works, as he has not the command of the necessary space. I do not think the companica can be blamed for considering their larger clients.

"But the companies have said, that they will allot space' pro rata," said the reporter. "No doubt they will," was the reply, "but I think you will find that the bulk of the business with the works is done by the exporters in a fairly large way of business, and I doubt very much if much more than 5 per cent, of the trade is done direct with the individual farmer. At this time it would certainly be ineauitable for the companies to penalise tlieir largest clients, who have, in the past, helped the producers by their competition in the open market. A WORD FOR EXPORTERS. 'It was only yesterday that the ex-. port buyers stood on firm" ground at all. and at the last market at Addington* buyers were purchasing lamb at 6d to 6£d per Ib, not knowing what the fixed tariff was going to be. They were operating in the dark, speculating, in fact._ Farmers accepted those prices, end it turns out after all that the fixed tariff should not leave the farmer in any worse position. Of course, under the new conditions the export buyers will want a little 'rake off' on their transactions, and it seems to mc that what they will be doinj: in actual fact will be speculating on the offal, i.e., on the skin and fat. At any rate, the farmer now knows exactly what meat is

scheme and to see an S ? the part of som c farmers to osfc«£'fe ? V exporter-or, as they tcimlSi - middleman~but I hbpe that &* forces of the R