MEAT INDUSTRY

Evening Post, Volume CXVIII, Issue 56, 4 September 1934, Page 12

MEAT INDUSTRY

NATIONAL CONTROL

ARGENTINE POLICY

"Evening Post" September 4. Not less but more Government control .of. business appears to be the modern trend. A revolutionary move in that direction has been taken by the Government of the Argentine. By the formation of a National Meat Board it has initiated a policy which, if fully carried out, will result in agrarian control of the country s meat-packing industry. The euabling aw provides for the creation ot iaic .tiei , owned co-operative packing P™U urnlei Government auspices. The board las a,t ority to completely reorganise the l^toik and meat . trade. Agitation tor Go\ ein-mentTc-tlon in the past few years has been coupled with complaints that during recent years of declining prices, cattle \a\ es have fallen more than the returns to plants handling meat for export. FOREIGN INTERESTS. The Argentine: meat industry is largely divided between. American and British interests. Meat producers maintain that, the critical position arising from the declining'export demand and the steadily declining prices paid for livestock, is due to the fact that they have not been ma position to participate in the actual packing, selling, and- exporting. Various attempts have been made by the Government during. the past decade to secure some measure ot control over the activities of the packing plants, particularly with' a view to. preventing any collusion as to-the -prices-to be paid. .Despite various laws, including one pi outline for the-payment of a minimum price for prime cattle, prices paid to producers continued to decline. The apparent increasing discrepancy between livestock prices in the' Argentine and values abroad, together, with declining exports and an accumulation of cattle resulted m the new law creating the board with authority to completely reorganise the livestock and meat trade. MAIN FUNCTIONS. The' Government is endeavouring to get the board functioning on the basis ot a \ minimum of conflict with established enterprises. The main functions of the jxational Meat.Board, as outlined in the legislation for it, 'are to — ■ ' ■ . Administer all meat laws that have been or maybe enacted; establish standards ot classification for.livestock, and for all products and by-products of the meat industry; establish special standards which must ■ be complied with as regards class, quality, conditioning, and conditions of transport, for the exportation of livestock products, and to'prohibit exports when such standards are.violated; set up packing plants ,and a.ny■• other industrial or commercial organisation necessary .in domestic or -foreign markets for protection of the -national' livestock industry; expand the ■markets'" for Argentine livestock products ' in the- domestic and foreign markets; supervise'the utilisation of cargo space for the meat trade and to regulate exports; establish and operate machinery for the collection' an'd,dissemination of economic statistics and information affecting the Argentine livestock ' industry; build up and administer a fund with which to finance .the activities of the board and all organisations'>ef tip under the terms of the new law; advise the President on all matters, relating to the meat trade. PRODUCER.CONTROL. •Plans are also being formulated to conduct cost . studies at that plant and at .privately-owned plants as a preliminary ;basis for. future a:ction. In permitting; the board to acquire new !or existing packing plants and other facilities to be run. by co-operative companies, the Government has provided the means for a complete reorganisation of the entire meat trade of the country. The functions of such producer-controlled packing plants ' and related' industrial institutions, would be to slaughter livestock; process, pack, and prepare meat and meat products; sell such products .wholesale or retail; transport , and export them; and install and -operate livestock markets. The initial capital for .the establishment' of these plants is to be secured from a special fund administered by the board. Once established the various companies are to be . entirely independent of the board, although subject to such general powers of inspection and supervision as may be maintained by the board over all organisations engaged in the Argentine meat trade. •In order to expedite the realisation of the objectives of the new law, a national packing plant -. is to be established under the. joint managership of the municipality of Buenos Aires and the board. The law provides that the Federal Government shall enter into an agreement with the municipality for the transfer to the national plant of the land, buildings, machinery, and all equipment now belonging to the municipal packing plant in return for shares the value of which (to be- agreed upon) will be regarded as the investment of the municipality in the new national packing concern. Pending.the formation of a qualified cooperative, the national plant will be administered by an autonomous directorate. Provision is made for full co-operative producer representation, on the National Meat Bqard. The board is expected to derive revenue from a levy of up to 1.5 "per cent, of the selling price of all ■livestock; special grants that might be received from the national Treasury; interest ■on .investments; and fines and penalties. Funds ; cati only be used for the following purposes:—Twenty per cent, for general administration, including advertising at home and abroad and expenses in the gathering and dissemination of statistics; and 80 per cent, for the establishment of the producer-controlled commercial and industrial organisations, provided for under the law.