MEAT FOR EXPORT

Dominion, Volume 12, Issue 81, 31 December 1918, Page 8

MEAT FOR EXPORT

PRICES TO BE LOWER \ ; PROBLEMS OF THE COMPANIES SALE OF BY-PRODUCTS THE SHIPPING OUTLOOK •fho prices to bo offered'for meat for export by tho freezing companies are to be lower thi3 season than in .the past two seasons. As tho Government; purchase at the same rates still holds, the reduction will not bo serious for wether : mutton, but it is thought that'tliero' may be considerable reductions for ewe mutton., and some reduction for lamb;' Probably tho reduotion for wether mutton will be one-eighth of a penny per pound.The companies operating point-out that costs have increased a Rood', deal in twelve months. Wages have advanced, the price of coal is very high and tho 'supply is precarious, and most of the companies have erected additional storage which, it is admitted, will bo valueless to them when the trade has once again become normal. Sonio '-'.of tho ; buildings are only temporary in character, and they will be taken down when' they are no longer needed. The cost of ,these buildings, it is argued, hasJn .fairness to be added to running costs. - V The companies are concerned also ebout> the. prices to be obtained for ieomo of their most important byproducts. The market for hides, pelfs, nnd tallow for the future is considered to be extremely doubtful. ..It is known already that in America tho market for. pelts slumped heavily on the signing of the armistice, and that in Britain also the slump was serious. Tt is certain that the prico of pelts will settle at a good figure even after war. conditions ihave' ceased to exist, but it is extremely unlikely that war values will''be sustained.- Tho-fallow position is said'to be even more serious. There are in the country now about 30,000 tons of tallow, and there is no probability of much of it being shipped soon. 'This product has not been,purchased by the Imperial Government, and it will'be subject to ;any change in the market value which may occur between now and the time .that it can be offered for sale in Britain. It is considered by the companies that even if tho war prices wero to.be; sustained the delay in tho shipment of the product, and' the continuance of charges for storage and in-: surance, as -well as delay •in T'eoeiving payment, would warrant a less price being offered in respect of tallow, and tallow is an appreciable item in every animal slaughtered. But there is little likelihood of the war prices being -sustained. On tho contrary, a considerable drop is expeoted. It is well known that the war price of tallow has been caused by the great need for glycerine. Before the war glycerine was a byproduct of 6oap manufacture;.in the war period glycerine has been tho principal product I

■ In addition there is the fact that this year the companies expect a much reduced output, and with the output reduced, and the same high taxes to pay, as.well as increased overhead charges on every other count, it is not considered that it wili ho possible to pay tho samo prices a3 were ruling last year. Some companies, it is stated, will discourago as much as they can the freezing of some classes of stock. Those companies who have the plants to do so will hone and can ewe mutton, in order to keep freezing space for wether mutton, lamb, and,beef. -

';"The:j'ear of a.small season i's'tho most serious concern of tho companies now, [md id some quarters it :s thought it bay yet. prove to be tho most serious concern for the producers. Much has been said about the fleet of 'big ships -which are supposed to be coining here very soon to clear the-store's of meat and other 'accumulated produco.",. No ,'-doubt tho ships are coming, but apparently they &re coming late. The, Devon, which has hot yet commenced to-load, was schedhled as a November ship. The PortLyttelton, scheduled for December loading, has not. yet arrived on the coast. Some bf the ships at least will not bo here ns promised, and this has been ihe experience always. No material relief is expected by the' companies until about April at tho earliest.., A.good number of Ships lint tho real jrush And if-time is lost then if as hot likely, to be made tip later in tho,' season.. A: couple of' Months is not a long time-for'a shipping jompany coming hero to pick up waiting jargo for which there is'no'competition, but it is' a very long time-'for..afaa-in'er folding' a line of prime 'ambs for export. In comparing tho .hipping situation with that of other years, it is pointid out that the season does not commence vith conditions similar to those existing [n.the two. previous years. When the jeason opened "at tho end <f 1910 tho jtores were 'empty.' In 1917 the stores fere emptyror almost so. This year the jeason opens'with-tho stores tliTee-qiiar-Sers.full.--The^immetliafe'need for shipDing is. greater thau" it his iyer been. l.The companies also appear tc have in iiin'd that at present tho Imperial purjhase does not extend 'beyond three tionths after the signing of peace. If Iho purchase is not extended' beyond that dme the prospects of tho trade for a jime after that must be-uncertain The jtores will be full of commandeered meat, vhich must be shipped before a single |arcas3 can be shipped on private acjonnt. Thero is ground-for hope, howler, that the purchase will bo extendjd. -,