FROZEN MEAT TRADE

Dominion, Volume 15, Issue 12, 8 October 1921, Page 12

FROZEN MEAT TRADE

AUSTRALASIAN V. FOREIGN BEEF

IMPORTANCE OF SUPPLIES FRUM DOMINIONS

An interesting report from an interview with Sir 'Thomas appears in “Cold Storage" (the leading authority on the imported meat trade), published in London on August 18. In explaining how the present unsatisfactory position has been gradually evolved, Sir Thomas Mackenzie said:— "At the beginning of the war the Home Government approached Ihe Dominion Governments for assistance in its emergency, and as ;t result Australia and New Zealand sold practically all. their meat, dairy produce, and wool to this country. The prices accepted by the Dominions overseas for feeding and clothing the fighting forces and civilian population were reasonable. The Board of Trade was in control at first, but at •i. later date ihe Food Controller took over those sections which dealt with meat and oilier articles of food and fixed prices to the consumer. Shipping services with the far distant Dominions during ilie war were- not able to keep pace with killings, and stocks accumulated out there. In this country a further accumulation occurred through the selling prices being kept too high and rationing- being niaintained much longer than was necessary. It is not necessary ,to explain that with long storage beforo shipment and after arrival much deterioration has occurred. South American Competition.

''Another factor which had a marked effect was that while the best of tlie New Zealand and Australian meat was (quite rightly) being sent to the fighting forces, and, with the exception of lamb, only the inferior descriptions placed on the market, the South Americans were froa. to place a considerable portion of the best, of their meat on the open market, and thus preserve their reputation and connection. The colonies, which were most anxious that the troops should have only the best, took no ex l ception to this, but the results in the long run have proved, most detrimental, and may prove disastrots; inasmuch as, while prior to the war out moat, especially lamb and mutton, led the market here, now .South American, especially beef, ranks higher. Take the case of frozen,, beef: In July, 1914, the official Quotations for Australian, New Zealand, and Argentine hinds were all on a par (round about 4-’d.); in July, 1921, wo find Argentine quoted at SJd., New Zealand at Gd., and Australian at 5Jd.; yet the qualities are the same as they were before the war, lam speaking of the new season’s beef which is available, freshly-killed and graded just as formerly, Now, when aye sold to the British Government it was never anticipated that our produce would be so handled as to affect so gravely the future of our meat trade. There is no doubt that for a period of years the Government made very high profits out of our meat, and if any loss is to be incurred by the disposal of the out-of-condition meat, that loss should bo charged against the profits already made, and not against the fair name of New Zealand and Australian pi eat." Costs of Carriage and Marketing. Dealing with costs extraneous to the actual value of frozen meat, Sir Thomas Mackenzie said: "The butchers, apparently, do not realise what this slump in the beef prices means. They do not realise that at 4d. per lb., which is the price obtainable now for sides, tho whole of the amount received has been spent in carriage and putting tho meat on the market. What the. overseas Dominions wish to see is the quality of their meat recognieed, because if that is not done tho growers of beef will be ruined, inasmuch as the present selling price of much of it merely covers the cost and charges in bringing the meat here, i.e., freezing charges, shipping, landing and marketing, without any consideration for the producer. This loss is having a marked effect. A grower has first to consider the best use to which he can put his land. In Now Zealand, if beef will not pay. he turns land used for grazing to something more suitable, or to carrying sheep if only fit for grazing. In Australia, however, most of the beef-growing land is not suitable for any other purpose. All this will tend to create an American monopoly, with probably- higher prices and possible shortage of supplies, land foreign States will be benefiting at the expense of our own Dominions. Whilst from a commercial point of view, if the South Americans do not take undue advantage, the consuming public here may not concern themselves so much; in the event of war breaking out, with the beef production in the hands of possible enemy countries, or countries in sympathy with the enemy, it would have a terribly detrimental influence on the result Of such war." Appeal to the Meat Trade. Sir Thomas Mackenzie went on to say that the remedy for this was largely in the hands of the. meat trade, and that tho Dominions had nothing to fear from a fair trial of their produce. "I do," ho said with emphasis, "appeal to tho trade, and for the trade to be supported by the consuming public, in concentrating on meat produced by their own people overseas, which is of the highest quality reaching this market; meat which, when all meat arrived on a free market and was sold on its intrinsic values, held premier position, and the quality of which lias in no way deteriorated since the war. The Dominions are concentrating their purchases in the Old Country. New Zealand is about to launch forth into public works' schemes tlr«t will require two million pounds' worth of machinery, and New Zealand is giving the whole of its orders to the British, manufacturer, not entertaining for one single moment the competitive prices from foreign countries. It is, therefore, only appealing for mutual trading. Ibis the same with Australia. I hardly think it can be recognised here --ow how much this country depends for its prosperity on the purchases of the Dominions, nor liow essential prosperity in the Dominions is to tho Mother Country.”

Disregarded Foresight. The paper adds the following comment: "Speaking with tho full knowledge and prestige of one who has occupied high positions, both in governmental and industrial circles, tho ex-High Commissioner for New Zealand said that quite two years ago he realised that there was no danger of a meat famine. He confidently brought before those in authority on this side a propositi to clear congested stocks of meat at lower prices. Although the British Government accepted his advice in part, yet the reductions were not’ liberal enough to bring about the clearance necessary. The result—now too painfully apparent—is that the Government stocks of mutton and lamb killed before the end of Juno, 1920, will not bo cleared until next October, whilst the Government beef killed before the close of last October will drag on until the end of the present year.”