ARGENTINE MEAT TRADE

Dominion, Volume 21, Issue 288, 5 September 1928, Page 14

ARGENTINE MEAT TRADE

According to thc ‘’Financial Times,” developments of no little Importance, and which may eventually prove to be ot a fat-reaching character, are taking place in| the imported meat trade. These are instanced by the agreement entered into between the .Smithfield and Argentine Meat Company and the Sansinena, and the financial agreement also concluded between the River Plato British and Continental Meat Company and Armours, of Chicago. Thc imported meat trade of Britain is handled by eight firms. These are:—Vestey aud Co., Armour and Co., Swift and Co., Smithfield and Argentine Meat, Wilson and Co., Sansinena Company, English and Dutch Meat and River Plate and Continental Meat. The first three between them handle nearly.. 69 per cent, of the trade. Thc Vestey group includes thc Union Cold Storage, which in turn controls numerous wholesale and retail businesses.

A body known as the “Meat Conference,” was formed in 1911 to regulate and control the trade, but owing to growing disagreements between the larger companies it broke up in March 1925. After a long protracted dispute a settlement was reached by the parties in October last year. While the dispute lasted there was severe competition among the meat companies owing to indiscriminate shipping of supplies to Europe, and, as a result heavy losses were sustained when the new agreement was concluded it was hoped that by December last all the companies would be on a profit-earning basis over more, but hopes in this direction have not been fulfilled. The settlement of the dispute did not touch upon the supplies of cattle. These supplies are largely in the hands of Argentine cattle-breeders, who are in no way connected with the meat companies. There is always a good demaud for high-grade cattle, and there is keen competition between tlie exporting and freezing firms for supplies of this type. Prices of late have been rising steadily and the meat companies have been faced with the increasing cost of production. In consequence the Sansinena Company and tlie Smithfield and Argentine Meat Company have joined forces witli a view to cheaper production and the River Plate, Britisli and Continental Meat Company has arranged a satisfactory working agreement with Armour and Co. A trade authority points out that to appreciate these developments the position of the trade as a whole lias to be considered. The resumption of the freight agreement lins not brought the immediate rdlief anticipated. It is considered to be clear that the alleged ring does not exist. Chilled beef, which is the principal commodity, ~is a very perishable article, aud when once it is decargoed it must be used within a comparatively small number of days, or it has to be destroyed. All that tlie Freight Committee does is to meet from time to time to decide what is the capacity of the United Kingdom and Europe to eat the meat that it will ship. Tlie various companies then sell in competition to each other, and they produce in competition to each other. Although the Argentine meat trade is working under some difficulty t.hoJe engaged in it look for better times. It is believed that thc day will come when both the American and Russian markets will be open.