COMMERCIAL & FINANCIAL

Evening Post, Volume XCII, Issue 76, 27 September 1916, Page 4

COMMERCIAL & FINANCIAL

Evening Post, Wednesday Fanners and others interested iv tho frozen meat e:-:porfc industry meet in Christchurch on _-lfh October to discuss the whole question of requisitioning of supplies of beef, mutton, and lamb, especially in regard to price and methods of distribution. The meeting is symptomatic, with the feeling experienced notonly in New Zealand but also in Australia that all is not satisfactory at the other end. So far as New Zealand is concerned, when the bargain was made with tho Dominion Government on behalf of the Imperial Government for the compulsory purchase of N_w Zealand beef, mutton, and lamb, .satisfaction was oppressed by those representing producers with the scheduled prices. One of tho negotiators representing freezing interests held that ''the prices arranged here with the Imperial authorities were on the market parity of the time, aud assured to growers a continuance of the then good prices." Tho prices paid wero f.0.b., producers hi\vin.£ nothing to do with the freight. 'The' cost of production, then, cannot, have increased to such an extent as to make export a losing proposition for tho producer. If any considerable appreciation of cost of production has taken place at all it is in tho "stores" markets. Freezing expenses havo not materially increased, and if no war were on and no fancy prices were ruling i,n London farmers would still ■ regard 4i.d per pound f.o.b. for prime wethers of 72 pounds and under as a good Price, and lamb on tho same terms at 5Jd to sgd.

Apart from these satisfactory prices farmers had tlie additional satisfaction o? knowing thai the meat wou'cl be carried to tho British mnrkets in British beats, and bo void to tho British people at a reasonable price; moreover, there was the ■■atMaction that tho Britirh Govcnunen* would not.be "bled white by foreign "iceuhl-ors when purch. sing its beef for the soldiers. This was the feeling in Australia and also in New Zeal.nd. But it has boon abundantly manifest of 1 .to that there i* a marked disparity in the prices of Argentine meat aud that from New Zealand and Aushalia in favour of th'j non-Brj'Hsh meat, and a difference of pence po. pound between the p-iee of ihc New Ze-d.nd meat, plus freight, storage, and other charges when it arrive-- home, and by tho time it is sold in the butchers' shops to the conbuniors. .Vbolo'slo nuota -.on. --how Argentine la ribs to he Id to lid per pound over New Zealand The margin becwecn tho prices paid- hj iho Imperial Government, plus frci-jiit and all ojher charges, and the v, hole.--ie quotations for such meat as i. released, and market prices ia en.rmous. For Now Zealand lamb Weddel's quote (11th August), 9^l per pound for "both North and South Island. The f.o.b. schedule price is 5J,d to s|d. At s.td all round there is a difference of 4d per pound to cover freight and all charges, a margain that is held hero to bo excessive. But by the time it roaches ti:e consumer it might bo any price, Is 2d to Is 6d, or even 2s. The •weak spot appears to bo that tho whole•salo pric. of New Zealand and Australian meat is H^cd in England by the Board of Trade, but tho retail is not, and as many wholesalers are engaged in tho retail trade, while profits in one direction aro restricted, in another they aro unchecked. Tho colonial meat is owned by the Board of Trade, which hands its distribution over to agem.., who _01l to tho merchants or distributors, and these sell to retailers or to themselves if retailers. In this parsing through so many hands, some under uo control, tho meat is bought—as tho market goos to-day—at a. ridiculously cheap prico and sold at exorbitant rates. The producer gets no benefit out of -flic •MiuMot, and the luckless consumer has to *'oot tho bill.

The Argentine meat is "free," that ,j_ .'t is not_ requisitioned as tho colonial meat is, and it commands anything from Id to lid per pound upwards more than Now Zealand. How this South American trade could bo controlled it is not at. tho moment easy to .suggest, especially, jn

view of tho great/value of the Argentine and Uruguay as sources of beef supplies for tho aiiied armies.

At the present- time New South Wales exporters are receiving sJ[d per pound for mutton and 6id for lamb on Imperial account, but that only applies to meat received in store or shipped before 31st October Victoria's ideas of values for tho coming season if tho meat is requisitioned are'---.mdcrstood by tho Pastoral Review to bo sid for mutton and oid for lamb for the whole, season.

Incidental to tho moat export question aud the bearing of Argentine unrestrict-

Ed prices on tho market, it may be repeated that United States interests in tho South American refrigerating- trade aro .paramount. At present they are not so prominent in Australia and Now Zealand, _ but large American works aro established in Queensland, and Armour's, if Chicago, aro opening a branch office in New Zealand at, Christchurch, Mr. N. W. Kingdon, formerly of the Gladstone Meat Works, Queensland, being manager m New Zealand.

WOOL.—The markot appears to bo in f ivour of growers, with crutchings to soil a. tho next local sale to be held early in October. From private advices received from Yorkshire it is learned that topmakers arc confident of tho future. Russian orders aro making heavy inroads in supplies of^ colonial crosabreds of tho lower qualities. -Future British orders for ''khaki" requirements a.c also given out. The utmost confidenco appears to b". reposed iv the market by those in tho trade, and it is expected that prices for the first part-of the 1916-17 New Zealand selling Season at, any rate will be on'a high level.

DAIRY PRODUCE.— Although oxport of butter is st.il! prohibited, except under permit, "full shipments will be loaving Auckland this week, although not so heavy as is the quantity offering. Space required for Wellington butter has been materially reduced. Tho London prieo is still very, high, equal, it is understood to 17d per pound f.o.b. for the season and lSd to 18Jd per pound for prompt shii.ment Very little cheese is now available for purchase, the great majority. o£ the North -Island factories adhering to their policy of consignment. It. is estimated that some 5000 to 7000 tons have been sold in the North Island at 83d to 9fd, and "8000 tons sold in the South Island at B^d to 9-Jd. The remainder of tho Dominion output, some 30,000 to _ 35,000 tons, will be consigned on factories' account. Weddel's figures tn 11th August show that British imports of cheese for the period Ist July to 10th August, 1916, were 417.518cwt: as com-, pared with 484,103ewt for the corresponding period of 1815. Of this quantity (1916) New Zealand contributed 85.522ew... Canada 304.415cw., '•'oilier countries." 24,530ewt. as against, 154,002cwt, in 1915. The wholesale- local price- being below the export value of butter is giving both _ factories supplying and thoso who distribute tho butter some anxiety.

HEMP.—The hemp market is steady, London prices being firm. Forward business is difficult to do in consequence of the _ difficulty in securing freight spaeo during the wool season. Had .hero been any inducement at the. other end business would have' been possible with Japan, as the freight rate was 70s as against 200s for London. Free on board prices for hemp and tow to-day a.ro approximately es follow : — Good fair grade, £36 10s per ton; high fair, £35 10s; low fair, £34 10s. Tow—No. 1, £11 10s per ton; No. 2, £10 10s; No. 3, £9 10s.

" GENERAE GOODS.—Packers' local representatives report higher prices for Californian fruits to be shipped in October to meet this Christinas market's requirements. Australian wax vestas aro meeting a. reported local shortage. -Japanese canned whitebait i_ selling wholesale in Australia at 50 per cent under the New Zealand packed article. Tho -Melbourne Argus reports that privnto cablegrams have been received to - tho effect that English makers will bo unable lo supply caustic soda until _ft.r the Avar, but that, supplies, can be obtained from America.

' TKA.—Oyiou lea |)U< 11 !.-•;■» arc at tho moment being warned to be careful, ac-

cording to the Calcutta Englishman. Buyers have been- far from satisfied at tha quality of the tea sold, and are saying so in uo uncertain voice The planttors, on tho principle cf making hay while tho sun shines, are accused of putting all sorts oi*. rubbish on the market, knowing y.eli that, owing to the abnormal demand, it will be bought at a very good price. It is even alleged that some planters arc sc careless as to mark anything on the packages, regardless' of the contents. It is claimed on their behalf that estates, were so short-handed that proper supervision was impossible, but buyers <i.re not accepting this e--:cu;e as responsible for planters' indifference to quality. Tho chief point is, of course, tho barm that is being done to the reputation of Ceylon tea. Coylon, indeed,. is already viewing with alarm the increasing demand for Java tea. Russia is lmying four times the quantity she did in 1813, and the Australian taking has almost doubled. Making the fullest- allowance for military needs, this shows Java in tho light of a future menace to the .Ceylon tea trade, and unless.tho Geylon planters are very particular in regard to quality, they con only, blame themselves if, -after the war, they suffer from any comparison that is made now bstween their own crops and those of Java. Ceylon, perhaps, has relied too long upon her past reputation, since one buyer alleges* that for some years there has been general negligence.