FROZEN PRODUCE.

Press, Volume LXII, Issue 18675, 26 April 1926, Page 10

FROZEN PRODUCE.

SPRING LAMB TRADE. GENERAL MEAT PROSPECTS. (FROM OPR SrECIAt/ COKRESrOXDENI.) • LONDON, March 11. The one bright 6pot ty be noted in the • general depressed condition' of the meat market' in Gi'eat Britain at the present moment is the acceleration with which New Zealand lamb, in contradistinction to all othei kinds- of meat, is passing out into consumption on the cold side of Easter. Certain it is that it is the only class ot meat which is so favoured at this time, and it is all the more a triumph because this is happening in spite of the exceedingly low prue of ueet in all quarters. . •Vt course, it is only the lowering of the price by some "2d or 2Jd per tb wholesale, as compared with last year, which has done this, but the great thing has been to get a start. \Vith ratiier less celerity Australian lamb stocks in store are being diminished, and it is a healthy sign that the Commonwealth meat even is now going out at slightly increased values as compared with those' of three or four weeks ago. A full clearance of the staler meat will take some time to accomplish; the sooner it is gone the better. It is also satisfactory to note that secondary qualities of New Zealand lamb are now moving out at slightly better prices, owing to the shorter arrivals of Argentine carcases, which usually compete with the secondary stuff.

Of beef, it is possible to give no more hopeful word than the poor report of the past few weeks. There hardly seems any low limit to the miserable prices recently made in Smithfield and elsewhere-on account of the glutting supplies-of the Argentine chilled quarters. Rumour after rumour circulates as to different decisions: arrived : at by the great competing parties from the River Plate as to agreement or otherwise for supply regulation from South America. Meanwhile no agreement seems to have been reached on this score,' apd the colossal losses which must have been made by the companies sending considerable shippients of late and finding in some cases their meat sold in the wholesale market as low as l§d and even Id per lb, must be disastrous to those engaged in this conflict. Several of the competing companies have slo-wed down their exports to the greatest extent possible for this reason; whatever happens, it is much to be hoped that counsels of reason'will soon prevail. . The Beef Trouble. Ilelative to this contest in the marketing of overseas beef in Great Britain, it is interesting to note a reference to the subject wiiich occurs in the thirty-eighth annual review of ' the frozen meat trade published this week by Messrs W. Weddel and Co., Ltd. Speaking on this subject, the Review says: "During the greater part of 1925 .the.chilled beef trade was in continual difficulties owing to certain of the American companies having greatly increased their nprmal shipments of chilled beef. The British companies in the South American trade have still deeply engraved upon their memories the methods, employed by t-lie American meat companies in 1913, when thev set out to secure a larger share of the South American meat business, by flooding: the markets with chilled beef at prices that bore no relation whatsoever to the cost. ■ At one time the English companies handled 66 per cent, of the Argentine meat shipments to Great Britain; but that proportion has been gradually reduced, until to-day the American companies have about.6o per cent., of the trade and the English companies about 28 per. cent.. In order still further to increase their, proportion,' certain American companies are again employing the 1913 tactics; but this time they find' themselves opposed not 'by the comparatively small concerns, which they found an easy prey in pre-war days, but by a British combination which, with several thousand retail shops, is much more favourably placed to make a stand against being put in an inferior position fo its principal competitors." N".Z. and Meat Export. It is interesting also, to notfc a comment on Messrs -WeddePs Review on the recent refusal of the Ngw Zealand Goyernment to allow a license to Messrs Borthwick for the export operation ■ ofthe Wellington freezing works, recently reported to. have been..purchased -by that company'. The Review says: "It is difficult to understand the reasoning behind, the policy of the New Zealand Government in regard to the meat trade. In the first place, they put the control of shipping in the hands of a Producers' Board, an act which automatically and permanently killed all competition for that freight, as obviously no shipowner would invest in steamers where cargo was subject to political considerations; and now they refuse to consent to the sale of one of the freezing works to a large English company who have the means of distributing the meat in this country to advantage." , • . • The Price Outlook, One other reference in Messrs TVeddel's Review it is of present interest to quote, and- that is a word of forecast as to meat trade prospects. On this subject it is said: "Looking further ahead, there would seem to be sound reasons for expecting beef prices gradually to reach a higher level. Everything depends upon the Continental demand being allowed to develop on natural lines without political interference. Given normal weather conditions and satisfactory prices, can the Argentine, Uruguay, and Brazil meet the growing demands of the Northern Hemisphere? They have shown what they can do in the past, and there is every reason to believe that they will rise to the occasion in the future, although some people hold a contrary opinion based upon the decrease of 10 per cent, in beef exports-last year." BRITISH TRADE LOANS. Details of the provisions in Britain for extending the period of opersition of the grsntingvof. loans under the Trade Facilities Acts were contsined Jn a Treasury White Paper issued in' February on expenditure likely to be incurred. Having recalled that under the original scheme an, segregate of £70,000,000 might be guaranteed up to March 31st, the memorandum proceeds:— It is estimated that on March 31st, 1926, authority for 25,000,000 of guarantees' will be unused. It is proposed to extend the peridd during which guarantees may be givtn to March 31st, 1927. It is further proposed to increase 'the total of £70,000,000 to .£75,000,000. The. maximum contingent charge on the taxpayer under these proposals, assuming an unused balance of £5,000,000 on March 31st, 1926, is therefore the charge for the interest on and redemption of a sum Of £10,000,000: Under-the Overseas' Trade Acts. 1920-24. th» Board of Trade .wjsTg' authorised, by Parliament to maka arrangements in connexion with export trade for granting credits and giving guarantees to an. amount not, exceeding £26,000,000," auch credits and guarantees to be granted before- September. Bth. 1926, and not to remain in fo,rc« latrir than September Sth, 1930, It is proposed, without increasing the above maximum liability," to empower the Board to give guarantees at. anv time before September fth, 1939, and to ex•tend the date up to 1 which guarantees'may remain in force to September Bth,. 1883."