FRICTION ARISES

Hawke's Bay Tribune, Volume XXII, Issue 35, 25 January 1932, Page 9

FRICTION ARISES

USE OF FACTORY BRANDS BY CONSIGNORS. FREEZING COMPANIES’ ACTION. With the object, it is stated, of preventing small parcels of lamb shipped Homo and sold on growers’ Accounts from adversely affecting tho market for tho main supplies, tho freezing companies recently decided that farmers consigning on their own account must do so through the companies which will handle their meat in London. If they consign to any other agent the companies will not allow tho use of their brands. Hitherto, in tho easo o! all consigned meat, tho brand has boon use of tho company in New Zealand at whose works the meat was killed. Some friction has arisen as a result of this action by the companies, but according to a statement made by Mr. D. Jones, chairman of the New Zealand Meat Producers Board, to a Christchurch “Sun” reporter, it was hoped, as a result of negotiations being carried out between the parties interested, that a satisfactory settlement would bo Mr. Jones said that certain proposals had been put forward by tho freezing companies to restrict tho use of th: brands, under certain conditions, by farmers and stock agents who were shipping on their own account. Ho added that none of this moat had reached the market yet, ahd that it was very questionable -whether prices would be affected. In explaining the position, the Christ church agent of a firm of London importers stated that the difficulties arose in the past through small lots of meat, principally lamb, being consigned to various agents at Home, and thrown on tho market indiscriminately, to tho detriment of the bulk supplies of New Zealand lamb. Very often tho market price was broken through this, when tho larger holders were holding out and trying to improve values. In order to prevent the agents for these small parcels from competing with tho factory brands, it was arranged that lambs frozen and consigned on growers’ accounts shovld bo offered under a distinctive brand, not under the factory brands. This was done purely with the view of protecting the market for tho standard brands.