Produce Prices.

Hawke's Bay Tribune, Volume X, Issue 126, 12 May 1920, Page 5

Produce Prices.

DECLINE MUST BE EXPECTED

THE GLUT IN BRITAIN

STATEMENT BY MR. MASSEY

[Per Press Association.]

Wellington, May 11

The Prime Minister was asxed today for his opinion regarding the cabled announcement that the British Government had declined to reduce the price ot meat, wiUi the apparent object ol clearing the glut ui stocks at present held.

•1 knew the drop in prices had to come,” said Mr. Massey, "that was quite certain judging by the enormous quantities of meat m store in Britain and on the way thereto. Like many otiiers, 1 cannot help thinking that there has been a great deal of mismanagement ill Britain, particularly ui the handling of meat. Everyone knows that the people of Central Europe would be very glad to have whatever surplus may be available, but with the unrest which prevails it is apparently almost impossible to provide properly for the requirements of the population. The markets of our produce are limited to Britain and, perhaps, the United States. Whether we can do much business with the latter country rennins to be seen. The Meat Trust do not appeal to many of the producers of" this country, and I think the producers have every reason to be careful. VVbat tile position will be six months from now, so far as the meat supplies of Britain ( are concerned, it is almost impossible to say. Just at present the outlook for shipping from New Zealand is good, there being no fewer than thirty ships in sight, but even with this number of ships and others to follow, it is almost certain that there will be a large quantity of nysat in our cold stores when the ~ext season opens at the end of the year. The Imperial Government will make a serious loss by the reduction in price whiph has been announced, bitt as against that they made a good profit on Australasian meat during most of 1918. “For some time past I have been unable to get any definite statements from the Board of Trade or the Food Ministry with regard to their intentions in the way of assisting us and avoiding the confusion and incon-, venience which may result from having quantities of the Imperial Government owned meat in store z after the end cf 1920. There is no reason to be pessimistic with regard to the future, but what has happened and js happening ji> regard to meat alone, with the drop in prices of wool announced to-day, ts another indication that we cannot depend upon the very gpod prices which we have received for our products Ruling the war period continuing :n--defmitely.

The is no possibility of a continuation of the meat commandeer. If the imperial Government agree to any extension of the requisition it will be inly for a short period in order to enable the stores to be cleared before die new season’s meat is ready for shipment. 1 have no information to ■on .cy about butter, but there will be jio commandeer. It is quite definite that there will be no commandeer of cheese this season.”

N.Z. MEAT FOR AMERICA. ‘

FAVOURABLE TRADE POSSIBLE. IMPRESSIONS IN CANTERBURY. (Special to “Tribune.”) Christchurch, May 11. The kcabled report of the sale to America of a large quantity of New Zealand lamb and mutton has been welcomed by meat circles in Canterbury as a means of working off the glut'of .neat held by the Imperial Government ind of creating a market in America which will benefit the industry. When ;he commandeer is lifted it is expected nere that sales to America will be mainly confined to lamb. She is apparently taking choice meat only, and will have to be educated up to the trade that appears certain to develop. Interviewed by a Christchurch “Sun” representative, one man in the meat trade pointed out that, although the cable stated that the arrangement is that 36,000,000 pounds of mutton and lamb is to be delivered within six months, three vessels have already left the Dominion direct for New, York or Boston with 27,000,000 pounds, and as four large vessels are still to leave the supposition is that a very much larger quantity will be delivered than that actually stated. He considered the prospects for. trade with the United States are excellent. There are ample facilities there for handling and storing frozen meat, and once the American public are educated to New Zealand lamb the demand should be great. He thought at 20) cents per lb. the Imperial Government would be losing very little profit, but much depends on the cost of freight, which he did not know. Certainly, compared with the price at which American-grown lamb is quoted, the New Zealand price is low, but the fact remains that the public, there has been persuaded to deal in the imported article. -