THE MEAT POOL

Evening Post, Volume CIII, Issue 53, 4 March 1922, Page 5

THE MEAT POOL

LONDON PRESS COMMENT

"OTHER COUNSELS MAY PRE- , VAIL."

(ntoji oun own correspondent.)

LONDON, 12th January.

Yesterday, news arrived from New Zealand that an overwhelming majority had shown themselves in favour 'of a compulsory meat pool. Now that there ia something fairly definite to go upon, it will be interesting to see what will be the next step taken by the proprietary companies in London. Apparently rinding that protests have failed, they are holding back in the meantime, for yesterday and to-day newspaper comment has been limited, and no further meetings have taken place. . "As the proposed arrangement is understood.in tliis oountry,'' says The Times, in a small commercial paragraph, "it is open to' a good deal of criticism,' largely on the ground that freedom for individual enterprise is considered to be of more importance for the development of commerce than the linking' up of industries to Government' control. However, the view is held that, in any case, muoh would need to bo done before the scheme could be put into operation, and serious doubts are expreß&ed as to whether the necessary work could be carried through in time for the system to be got into working order during- the season now in progress, and before next soason, it is thought, other counsels may. prevail. In the meantime, there seems to be some uncertainty respecting the difficulty 'Thioh arose early, last year between the New Zealand Government and the Armour Australasian Company. It is understood that the withholding of permission for the export of meat to Europe, bought by the company, has resulted in the storage in New Zealand of some 550,000 carcases of lamb, which formed! part of last season's supplies. The fact that so muoh meat remains in the background unmarketed cannot, it is suggested, have .a favourable effeoi on present prioes."

ARGENTINA'S INCREASING TRADE.

The Daily Telegraph also draws attention to an interesting point. "If New Zealand farmers are producing- moat for consumption in the. United Kingdom," rays that journal, "if. is the proper thing that they should receive a reasonable in- . ducemont to continue, but as matters stand at present, New Zealand must com- | pete in the open market with other producers. How Argentina, ] for instance, 16 sending increasing quantities of what New Zealand specialises in—frozen niut- j ton and lamb—is illustrated by the re-1 turns for 1920, and the first half of last year, as follows:— Jam.-June,' 1980. 1921. Mutton carouses , 934,969 1,383,886 1 | Lamb .carcases 265,417 512,362 "This is well below the quantities from I New Zealand, but the remarkable increase is a matter for serious consideration. During the twelve months ended 31st October last, New Zealand exported to the United Kingdom 5,393,000 carcases of mutton and 5,130,000 of lamb. It is estimated^ that during the current season New .Zealand killings for /export will be 2,000,000 sheep and 3,600,000 lambs, making, with stocks in hand, 2,201,000 sheep and 3,954,000 lambs, a reduction—and this is important—as compared with last year of 58 per cent, on mutton and 22 per cent, on lamb. With quantities going down and rivals' supplies going up, New Zealand is right in considering her position on our markets. Values are lower, at present on a lighter production. '

"Is the remedj' a pool? Is there room for reduction in cost of marketing? There has been a lowering of freight charges equal •to about 1+ per cent, or, roughly, a farthing per lb, but there has been a reduction of a penny per lb on Argentina meat freights. New Zealand freight rates were ljd for mutton, 2d for lamb, and ljid for beef per lb, and a farthing reduction was conceded on mutton and beef. The American trust is at work ini;New Zealand, and the Government there is inquiring into the situation. There has been agitation to cop© with American competition in New Zealand by the Government making safeguards by licensing. On the.whole, it is possible that the New Zealand pool proposal will focus attention once more on the working o£ American meat traders and their world-wide ramifications. In London the view is taken that iprices are on the rise, and that the alarm at the source of origin is hot likely to be so serious in the future."