COMMERCIAL.

Press, Volume LX, Issue 18122, 11 July 1924, Page 10

COMMERCIAL.

N.Z. MEAT PRODUCERS'

BOARD.

SECOND ANNUAL REPORT.

The second annual report of the above Board, with statement of amounts to June 30tli, 1924, has been issued. It is a voluminous document, from which the following summary is taken:— Finance. The audited accounts for the period show that investments now total £25,000, and the total value of assets is £33,811 0s lOd. The accumulated fund now stands at £32,745 7s 7d. During the year under review the Gov-ernor-General-in-Council made a regulation prescribing the maximum charge to be paid by way of levy in respect of pork and veal exported from NewZealand at 2d per carcase.. Under this authority the Board has collected th-i sum of Id per carcase on veal and pork shipped from New Zealand after November loth, 1923. The Board would like to state that, it welcomes the opportunity for discussion afforded by this annual meeting of representative Elieepfarmers gathered. from all districts in the Dominion. These discussions are invaluable both as regards the Board's work in particular and the New Zealand frozen meat industry in general. The election for the purpose of electing three producers' representatives resulted in the Messrs Grigg, Jessep, and Perry being unanimously re-elected by the Electoral Committee. In accordance with the provisions of the statute two members of the Board will retire on August 31st, 1924. An election similar to last year will be held in accordance with the gazetted regulations. Begnlation of Shipments.

One of the most important duties undertaken by the Board since its inception has been the regulation of shipments. The regulation of shipments, besides being in the direction, of stabilising prices, also tends to prevent big accumulations of meat getting into the hands of large holders. A glutted market with .a limited demand enables speculators to operato and to take full advantage of the position. Compared with last Beason, the Board, in regulating shipments this year, has not allowed more meat to go forward in any one month than the position warranted, and in arranging freights with the shipping companies, the greatest care has also been exercised to ensure that sufficient supplies are going forward to meet the demand. In regulating shipments this year, the Board took into consideration the small quantity of lambs shipped from Australia, and also an anticipated greater demand owing to the large number of visitors in London attracted by the Exhibition. It is also very important in regulating our shipments to see that the bulk of our lambs are shipped before the Australian new season lambs start to come along. It is pleasing to note the increase of shipments of meat to West of England ports. The shipping companies are co-operating with the Board to farther increase shipments to these ports. There has also been a considerable amount of beef shipped during the season from the Dominion to the Continent of Europe. The regulation of shipments. is of immense value to the shipping, companies, who are advised by the Board at regular intervals ahead as to the amount of tonnage required for each month. This places the. shipping companies in the position to work their vessels to the most economical advantage. Grading. The reputation of our meat in Great Britain is one of the greatest assets our Dominion possesses, and we must aim to give an unchallengeable guarantee that the whole of our frozen meat exported is strictly according to grade specified, and thereby isnpire confidence in the buyer. There is undoubtedly a market for every class of meat we can produce, but the more prime quality meat we can ship the greater will be the permanent asset we thereby create in the enhanced reputation of the Dominion's meat, particularly lamb and mutton. The Board has appointed fully-quali-fied supervising graders, who periodically visit each works to see that the grading is kept up to the required standard, and that no meat, particularly thin or emaciated lambs, is shipped, which might bring the reputation of our lamb trade into ill-repute. These supervisors, in the course of their duties this season, have rejected for shipment a great number of poor quality ]ambs at different freezing works, and this has had the desired effect of greater care being exercised in the drafting. In the interests of our trade, apart from the economic loss to the Dominion, it is imperative that these poor quality lambs should not be allowed to leave our shores, and the Board has issued instructions to each supervising grader to exercise the utmost vigilance to see that the instructions of the Board are carried out.

The graders have a very difficult job with some lines of unfinished or badly bred lambs which are sent along. Many of these lambs are just above second quality grade, but as prime lambs their quality has nothing *to commend them to buyers. It is incumbent on every farmer in the Dominion to endeavour to breed good ■quality lambs, and to finish them off thoroughly before sending them along to the freezing works. In order to encourage the breeding of high quality lambs the Board in tends to offer prizes at the Royal Agricultural Society's Show for the best pens of lambs suitable for export. Particulars will be announced later on. Shipping Freights. As mentioned in our last report, the Board succeeded in obtaining reductions in shipping freights for the 192223 season—a twelve months' contractrepresenting over £575,000 per season to the meat producers of the Dominion. "When the contract then made expired, the Board again conducted negotiations, and ultimately secured reductions for a twelve months' contract for the 1923-4 season representing an additional £164,000 per season saved to the meat producers of this country. In addition the Board negotiate i with the shipping companies for reductions in dairy produce freight rates, and was successful in. securing lower rates as follows:—Butter, a reduction of 6d per box, representing a saving per season of £67,160; cheese, reduced from 1 l-16d per lb, plus 10 per cent. ; to Id net, representing a saving per season of £94,570: total saving per season, £161,730. Freight rates were ' also reduced on apples by 6d per case, and on pelts and tallow by 10s (plus 10 per cent.) per ton at the same time. Advertising. With a view to introducing prime I New- Zealand lamb into homes where it may have been previously unknown, the Board made arrangements, to deliver single carcases of lamb to any address in Great Britain for the sum of £1 13s j>er carcase. Tliis schemo

has met with gratifying results, some 1400- single carcases having been delivered to addresses all over Great Briain. By this means it is estimated that this prime article of New Zealand produce will thus be introduced to over 8000 people. . This form of advertising .is regarded by the Board as a valuable means of making known our lamb in quarters where it was probably unknown before, and as it will be labelled "New Zealand," it will by the means of letting customers know what to expect when they order New Zealand lamb. Several hundreds .of acknowledgments appreciative of tlu quality and condition of the meat supplied have been received by the Board. The London manager of the Board recently arranged for a special exhibi- | tion of New Zealand lamb and mutton at the large Army and Navy stores in London, where a display of British Empire products was being inaugurated. A splendid display of our meat waa made, and it was supported with a plentiful supply of placards, drawing attention to its supreme quality, tho rigid system of grading and inspection, etc. This idea is being extended t>> the provincial towns later on. A great deal of time and labour has been spent in the preparation of a cinema film depicting every phase ol the frozen meat industry, and it is anticipated that when this is exhibited at the Empire Exhibition, and later throughout the main cities and towns of the United Kingdom, this modern method of advertising will result in increasing the number of potential consumers of prime New Zealand lamb throughout Great Britain. The London manager has recently completed a ver\ favourable contract to provide a moving picture advertisement on novel line-; to be shown at the larger picture houses in England and Scotland for one week at each centre for 12 months. Pork Industry. The large reductions obtained by the Board last season in respect to the ocean ffieight rates and railway tariff on frozen pork were of great help in assisting the establishment of this new industry, and the opinion held by the trade in regard to New Zealand pork is shown by the following extract from reports which the Board has received from time to time from its London manager, who is doing everything possible to assist this industry: "I was very pleased to find the very high opinion merchants have of the quality of New Zealand pork, and it is considered much superior to American'. L am quite sure there is a splendid market, here for all the pork we can produce, provided we keep up to present standard of quality." When the general manager of the Board was in London last year he saw a line of pigs from one of the New Zealand works which opened up in excellent condition, and. created a very favourable impression on Smithfield Market. They had been carefully selected, graded, and dressed, and were all in double covers, and, as a result, opened up in first-class condition. In the interests of the pork industry of New Zealand the Board decided that all pork exported must be double bagged, commencing with the 19231924 season. This is absolutely necessary in order that the meat may arrive in good condition in the United Kingdom. Beef Industry. Before the Board was formed in 1922 a contract had been signed for the carriage of the Dominion's frozen meat for the 1921-1922 season. Recognising that the drop in beef prices which took place ,in that year meant disaster for the beef producer, the Board entered into negotiations with tho shipping companies which resulted in a reduction being secured in shipping, freezing, and railage charges of over -Jd per lb—equal to at least £73,000 for the balance of that season. Last year, on account of tho serious condition of the beef industry, the Board again approached the shipping companies,' who met the position by granting a much-appreciated reduction of l-8d per lb. Commencing with the 1923-24 season, the Board decided in the interests of the beef industry that all frozen beef exported from New Zealand must bo double-bagged. Ai.t opportune periods the Board instituted extensive campaigns urging the public to eat more beef. It is very gratifying to know that these campaigns are making steady headway as is evidenced by the increased consumption of "Beef in the Dominion. An analysis of : the killings of moat for local consumption at the different abattoirs for the two seasons in the Dominion gives the following figures:— Cattle. Calve 3. Sheep. Lamba. Match 31st, 1923 125,483 24,620 690,295 109,256 March 31st, 1924 148,065 35,375 670,350 84,546 Railway Tariff. The reductions in the railage tariffs secured by the Board in 1922 representing 25 per cent, reduction in cattle and frozen beef, and 20 per cent, reduction in frozen mutton," lamb, and pork, have proved of considerable assistance to the industries which received this benefit.

The Board has been in touch with the Minister of Railways regarding the freight rates on all clases of live stock and frozen meat. Other matters relating to the transit of live stock, trucking, etc., have been discussed by the Board with the General Manager of Eailwavs on a number of occasions. General. The chairman of the Board, Mr David Jones, left for London in April la«t in connexion with freight and other important matters. Whilst in London, Mr Jones will attend the International Congress of Refrigeration. During Mr Jones's absence from New Zealand Mr Wm. Perry has been appointed acting-chairman. Mr J. S. Jessep, vice-chairman of the Board, has been granted leave of absence on account of ill-health, and has, on his medical adviser's advice, left on a sea trip to the Home Country. The Board is doing everything possible to enoourage the shipment of meat to the Continent of Europe with a view to opening up new markets there. It has also an agent on the Continent who is closely in touch with the Board's London manager. The Board's periodical official communiques relating to the statistical position as regard production and export of frozen meat are regularly sought after by all who are interested in the marketing of our meat. Reference is made at length in the report to the need of more production by means of manuring and the growing of artificial feed. In this respect it is stated.that "it is surprising to note the small amount of artificial feed that is grown in the North Island as compared with the South, particularly Canterbury. Prom the districts where most attention is given to the artificial feeding of lambs, the results shown by the numbers of lambs, and particularly the quality turned out, are considerably ahead of other districts where the nature of the soil and other natural features are practically identical." The display at tho Wetnbley Exhibition, the matter of the multiplication of marks, Empire preference, and various other matters are referred to at length, and the report concludes: "The New Zealand Meat Producers' Board realises that though market prices may rise and fall, every charge between the meat producer in New Zea-" land and the consumer in Great Britaiu or elsewhere remains more or less fixed*

'bo that whatever reductions can be secured represent a permanent reduc tion in costs, or in other words, ail increase in the net return which tin farmer obtains for his labour and capital invested. A large part of thj Board's work has therefore been devoted to securing reductions in these charge's. The policy of the Board may be summed up in this: —To obtain tin; highest net prices for the producer and to establish a standard of quality that will put our meat in a class by itself." Balance-Sheet. The income and expenditure account showed under the expenditure heading a sum of £11,097 4s 2d as management expenses. Head office £6283 9s Cd, and London office £4813 14s Bd. The largest items were: Salaries £ i 652 14s 8d (head office) and £3041 16s 41 London); members' honoraria £2259 9s, and travelling expenses £949 12-s 9d; general manager's visit to South America, England, and U.S.A. £517 7s 6d- chairman's visit to England (on account) £222 14s, salaries of graders £1466 14s sd, and Wemblev display £2363 2s 6d.

The income was £29,327 Is 4d (less cost of collection £293 as od) £29,03" 15s lid, and interest on investment' £928 10s 8d: total £29.962 6s 7d, showing an excess of income over expenditure for tho twelve months of £8359 12s.

MEAT BOARD AND SHIPPING. * SPEECH BY MR W. D. LYSNAR. GicSBORNE MEAT WORKS. (special to "the prxss.") WELLINGTON, July 10. Mr W. D. Lysnar, the member for Gisborne, spoke in the Address-in-Roply debate in the House of Representatives this afternoon. He deprecated personal attacks. Surely; ho said, the members of the Opposition could deal with matters on their merits. He believed there should be a fusion. It was necessary to realise that the Dominion had serious problems to tackle. Parliament should do more work and talk less. He regretted very much that the Labour Party were going to use the forms of the House with a view to preventing any reduction in taxation. There was a section of the community at present who were opposed to the farmers. They decried farmers as men who were unable to manage their own affairs.

There were three causes accentuating the depression in the country at the present time. The first was shipping, in connexion with which the irregular arrivals at Home were causing losses. He gave details of these irregular arrivals. The great drop in the price of our butter in London, from 214s a c%vt in January to 150s on March 25th, was due to irregular arrivals of cargoes. He estimated that the loss in butter and cheese to the farmers through this cause was £529,310. The losses for a year he estimated at £1,040,000. Shipping Companies Criticised. Mr Lysnar, speaking vehemently, condemned the shipping companies. He was against State shipping— A Labour member: Well, what are you driving at?

Mr Lysnar: You'll find out presently. The scheme he approved, he continued, was one which had been adopted by the farmers and freezing works companies some years ago, and resuscitated last year. It was a scheme to ask the Government to contribute a £ for £ subsidy. He had demonstrated with the Admiral Codrington that there was a big profit in shipping, though in this case they had laboured under difficulties. There should have been three or six ships, instead of one. Eeferring to the Meat Board, he said it was necessary that the personnel should be altered. "I have," he Baid, '' enough data to warrant me in applying to the Prime Minister to have Mr David Jones removed from that Board. (Labour members: Oh, oh.) That, however, is a matter that is under the consideration of the Government at -the present time. I don't propose to deal with it any further, but I say that Mr Jones should be removed from that Board. A member: What for?

Mr Lysnar: I'll not discuss what for. Later on it may be necessary to give the House this information. Until it is dealt with by the Government, I'll leave it alone. At the present time I have made certain charges. I made them to Mr Jones before he left the Dominion, and ho wrote his reply. „ Sale to Vestey Bros. "And now," said Mr Lysnar, "I have a grievance against my respected friend, Mr Nosworthy, as Minister of Agriculture. A member: Do it gently. Mr Lysnar: I'll do it as gently as I can. (Laughter.) It is, of course, in connexion with the sale of the Poverty Bay meat works to Vestey Brothers.

Mr Lysnar proceeded to state that he was not going to say anything at that juncture about the National Bank of New Zealand, which had been responsible for the initial steps. The world would not say anything good, bad, or indifferent as to what they did, and he wished to make it plain that there was no desire that the authorities should interfere with the bank's right to "sell under its mortgage. What the company asked, and expected, was that the bank should stop selling to a combine or trust. That was the whole and the only point. Personally, he was interested to the extent of £20,000, and though it was a big loss, fortunately it was not his all. But there were some people in the concern who had lost their all. These were the people he was concerned about, and felt sorry for. There were men who had retired from business, who had put their all into the company, and had now to start again. As to Trusts, he challenged any man in this Dominion to say he had fought Trusts more than he (the speaker). They were getting away with hia swag to the extent of £20,000! He felt that, and he felt for all those who had retired from business and had to open their doors again. Minister's Action Criticised. This would not have happened had the matter been dealt with impartially and fairly by the Minister of Agriculture. He would assume that what the Minister did he honestly believed was the right and proper thing, but what he did was not in the interests of the Dominion as a whole. If that was his best, then, it was up to the House to consider the question, and see what was to be done to protect others who might be in the same position. The Minister showed weakness in facilitating that sale, and in not heeding the appeal of 538 shareholders, but allowing the works to pass out to the biggest Trust in the world. It was a Trust with £8,700,000 behind it. The Government and the House that could allow that must answer to somebody. He would leave the House to its conscience to consider that. He had no fault to (Continued at loot of next column.)

find with the Government as a whole. It was the Minister of Agriculture! Had the Prime Minister been here when the Minister took those steps, lie (Mr Lysnar) would have cast the responsibility on the Government. But he cast it on the Minister and on the Meat Board. On the motion of the Hon. "W. Nosworthy, the House agreed to give Mr Lysnar an extension of time, and Mr Lysnar then switched on to other subjects. Mr Nosworthv did not trouble to reply, by way of personal explanation to Mr Lysnar's comments on himself.'