GLUTTED MEAT MARTS

Hawera & Normanby Star, Volume LXXXI, Issue LXXXI, 15 May 1920, Page 7

GLUTTED MEAT MARTS

IMPERIAL GOVERNMENT'S ACTION.

THREATENED SET-BACK TO THE INDUSTRY.

The information that the Imperial Government has decided to reduce the price of imported mutton in Britain was discussed m Auckland on Monday with considerable interest by the people concerned in the frozen meat trade The o Pmi°n*as e *Pressed that such'action should have been taken by the Food Controller immediately .upon the cessation of hostilities. It was contended that had the meat been offered eighteen months ago at the prices now quoted the present congestion in the stores in Britain and m the overseas Dominions would not have accurred.. Such action would have meant a substantial loss to the Imperial Government, but by deferring it the position has been rendered infinitely worse; not only has the loss still to be faced, but the congestion everywhere is threatening to cause a set-bacfe to one- of the staple industries °[ the Dominion. One of the effects of the high, prices charged for meat in Britain was a marked decrease in the consumption of meat, and it is assumed that^ even at reduced rates it will be a considerable time before consumption will be materially increased. This, in view of the storage capacity of the Dominion is taxed to its utmost, is regarded as a serious matter by those who understand the position. It was stated by one authority that prices, probably, would have to be still further reduced to facilitate a clearance of British stores, and prices for the coming season's production in the Dominion would drop in sympathy.

The opinion was expressed by one expert that the Food1 Control Department m Britain had" "muddled" the whole business of meat distribution, and that the producers of the Dominion would have to suffer the consequences. What these would be, he said, nobody could predict, but it was safe to assume that after the end of th e requisition period there would be a marked drop in prices.^ The fact that the Imperial authorities had at last been compelled to realise that special action was necessary to clear the congestion in the British stores, indicated that prices would require to be kept at a low figure to remove the congestion in Dominion stores. As far as New Zealand was concerned, w e Mere confronted with the position of having a full season's supply to dispose of when the new season was starting. It was estimated there would be at least 4,000,000 carcases in store in November, and this, together with what would be either afloat or unmarketed in Britain, would at least represent a season's production. It did not require much thought to realise that the new season's meat would have a poor chance of being marketed during the season in which it was produced, even if it were offered at considerably reduced rates. The suggested extension of the meat requisition was mentioned* as a desirable thing, in th c interests of producers, but doubts were expressed regarding the willingness of the Imperial authorities to grant an extension in view of the drop iq prices.