RATIONING OF MEAT

Press, Volume LXXXIV, Issue 25583, 26 August 1948, Page 6

RATIONING OF MEAT

Savings Doubted By Commission AUCTION SALES FAVOURED (P.A.I WELLINGTON, Aug. 25. There was evidence that the saving of meat through rationing was out of proportion to the expense and inconvenience involved, said the report of the Fresh Meat Supplies Commission presented in the House of Representatives to-day. The commission said statistical evidence as to the actual saving through rationing was conflicting and, in the time at its disposal it was unable to resolve the conflict. Its view was that the abolition of rationing would assist the butchery trade and a report should therefore be obtained from the Government Statistician, acting in conjunction with other departments concerned. If this

report showed that the saving from rationing was not material, it should be abolished. The commission felt justified in concluding that breaches of the price order were fairly widespread. It deplored this, but because of the lack of satisfactory evidence, it did not conclude that it was . impossible for butchers to operate over the whole year at a reasonable profit under the existing retail prices. The position seemed to be that the accountancy methods of most butchers did not enable them to determine from month to month whether their profit position was satisfactory There was no certainty that if the present retail prices were raised butchers would be more disposer’ in observe the price order. Review of Price Order The commission considered that the master butchers’ application for a review of the price order Should be proceeded with immediately, and that the Price Tribunal at the same time should closely examine the effect on the industry of the alleged widespread evasion of the price order, rationing, grading. the extension of export houses in the local meat trade, the high winter price for stock (particularly in the South Island), and the seasonal retail price increases in both islands which it was contended by master butchers were inadequate in amount and dura-

tion „ It was considerea that supplies of fresh meat for the retail market were in the main adequate at all times of the year, subject to the reservations that exceptional seasonal conditions might create temporary shortages at any time in a particular area. Transport difficulties and costs over the last few years, particularly between the North and South Islands had tended to accentuate butchers’ difficulties in obtaining supplies at satisfactory prices and also it appeared that in the winter, particularly in the South Island, the price of stock was too high for butchers to make a reasonable. profit in that period under the existing retail price order. The practice of releasing supplies of frozen meat for local consumption during a shortage should continue. The commission doubted whether the prejudice against the use of frozen meat was justified, and its use during periods of real shortage was the only way to meet such e c atisfactorilv

importance ol Kaleyards The commission was of the opinion that it was impracticable at present to provide for butchers to purchase meat for local consumption by means of a schedule similar to that adopted for the export trade. In existing conditions auction sales played an essential part in New Zealand’s farm economy and should be maintained. To eliminate saleyards at oresent would lead to chaotic conditions. There was nothing to prevent butchees adopting one of the systems of group buying if thev desired, provided the provisions of the Commercial Trusts Act were not violated. The matter should be left tn butchers themselves.

The commission was satisfied that the value accruing to butchers from the wholesaling of meat by freezing companies was very real, but it fully appreciated that any concerted action by freezing companies to capture the local wholesale trade would seriously affect the position of abattoirs and might ultimately detrimentally affect the position of butchers No positive action was needed at present, but the position required watching by th? appropriate authority. The commission was unable to recommend that all killing for the domestic market should be done at abattoirs, but fully appreciated that if the present drift nf butchers awav from abattoirs continued local bodies could not be expected to maintain abattoirs at a high standard In general, the most satisfactory solution miftht be for abattoirs and ancillary ope'•ations to be taken over by co-operative n’-’infsations of butchers. The present meat grading regulations for the local market were basically sound and benefited the consumer The operation of grading regulations in some freezing companies should be under stricter supervision and a greater degree of uniformity should be aimed at in various districts. A super grade of beef should be introduced. Such a super grade would command a premium over prime quality and the possibility of treating it on a similar basis to early lamb should be examined Such a grade would induce the production of higher quality beef, the encouragement of which had been lacking since fh«* abandonment of chilling for export. Mr A. A. McLachlan. S.M.. chairman and Meslrs R H Tennent, Assistant-Direc-tor-General cf Agriculture. L C Webb Director of Stabilisation, and A. P O’Shea, -ecretarv of Federated Farmers signed this report. Mr K. W. Perry, master butcher. Auckland, furnished a minority report. Mr Perry expressed the opinion that there had been a longer period of excessive prices for stock than the majority of the members considered. Inflated

livestock values particularly in the winter. were too high to permit retail butchers to make a reasonable profit under the existing price order. The authority to survey periodically fresh meat supplies and arrange for withdrawals from export stocks for the domestic market should be one composed of officers of the Marketing Department and the Master Butchers' Federation. He recommended as preferable either to a voluntary schedule or a schedule by regulation a meat wholesale price order as the only alternative practical method which could be adopted at present of establishing a basic buying price to which the retail price could be adjusted with equity to the retail trade. The wholesale price order would partially govern, or influence to a degree, the purchase price of livestock, auction sales and sales by private treaty would continue, the individual trader would be free to purchase supplies by either method livestock or carcase meat and any purchases made by the trade at auction in excess of the values calculated from the wholesale- carcase price would be the buyer’s individual responsibility when alternative markets for the' purchase of sunplies at the basic cost price were available. Reductions in abattoir killings were primarily due to export and the freezing company wholesalers’ activities, and must indicate that securing at ' least a major nortion of the local wholesale trade must be of interest to these companies It was apparent that with the present growing tendency on the part of retailers to buycarcase meats and the continued extension of wholesale operations at a similar rate over a number of years an almost complete monopoly of the wholesale trad? in Auckland and probably in other metrooolitan areas would have been established by these companies. The position should be investigated and. if necessarv. action taken to check any monopolistic trend which would jeopardise the financial stability of the abattoir undertakings.