WELLINGTON NEWS

Hokitika Guardian, 26 March 1927, Page 2

WELLINGTON NEWS

FROZEN AIEAT MARKET

(Special to “ Guardian.”)

WELLINGTON, -March 23

Tlie frozen meat market does not show much vitality, indeed according to the latest report the market is depressed, and the outlook is unfavouruble. Best New Zealand lamb is selling at Old, and best North Island lamb at 9>d. Compared with tlie previous week down and second qualitv lambs are Id per lb lower, and ordinary North Island lambs Hi lower. However the consumption of lamb is improving and this may lead to a betterment in price. Canterbiuy quality mutton, light weights has fallen id, while North Island mutton has declined S of a Id. These prices are very low "and the reason for them is to be found in tho heavy supplies of and low prices ruling for South American chilled beef. Last week Argentine chilled fores were • quote at 2RI and hinds at old. These prices are well below those ruling for New Zealand mutton and lamb, and with the restricted purchasing jx>wer of the consumers, it cannot he wondered at tbit they' aie giving preference to the cheaper meats, and the supplies of beef appear to be more than ample to meet the requirements. Thus during the month of January the supplies of meat to the London Central Market comprised beef. ,:md veal 23.40 S tolls, mutton and lamb 12.191 tons, and pork and bacon 3.039 tons. Thus the supplies of beef and veal exceeded the supply of other classes of meat by 7578 tons, and Hie figures include the Home supplies as well as imported. During the last week in January the price of hindquarters of loreign beet at Bmithfield Market was 4ld a lb, or Id a pound cheaper than the average price during 1913 for the same quality of cut. ’1 he wholesale price of 4ld - represents the highest grade ■oF chilled Argentine hindquarters, which comprises rump steap. silversidc. wing rib. sirloin and all the choice joints, in the suburban shops the retail price for rump steak is Is 3d, Is Tor silversidc, lOd to Is for ribs according to cut. The butcher’s plea is that lie must charge these juices to compensate him lor the low prices lie gets for inferior joints, which viioboilyt wants. 11 retail

butcher can only sell prime joints ne need only buy prime joints. The retail butcher makes a profit of about 33 per cent on the sale of mutton, and he is naturally anxious to sell more chilled beef at 299 per cent profit than mutton at 33 per cent. Here is a problem that is beyond solution by the Meat Control Board. The outlook for frozen lambs and mutton cannot be good with beef selling at below prewar level. One authority says that the flood of competition which the meat from the Dominions is now finding from tho more prevalent supplies from the Argentine is a subject ol comment, and there are no signs that the present conflict will lessen in severity. Owing to the large decrease in the demand for iro/.en beef on the Continent of Europe, the freezing works in South America last year kill-

ed three quarters 61 a million c less cattle than in 1925. The consequence is that large numbers lo cattle are pressing on the market in South America. This is not an encouraging pros-

pect for the rest of the overseas refrigerated meat trade as the natural resources of the Argentine more iavourablv situated to the British market must press heavily against the latter.

BUSINESS IN BANK SHARES

The shares of New Zeiiland and Australian joint stock banks have lor some time past received the very close attention ol investors, ana lust week sales were recorded on the New Zealand stock exchanges of the shares of eleven different banks, and there were 17 separate transactions, prices varying from 31s for the ordinary shares of the Commercial Bank of Australia to £49 12s Gd for the shares of tlie Bank of New South Wales. Announcements of fresh capital issues to sharehilders on very favourable terms andi amalgamations which arc also favourable to shareholders have been the cause of bank shares being in such keen demand. And the demand has been stimulated by the. belief that further amalgamations are pending. There lias befcn a considerable ad'luice in Bank of Adelaide shares. which last week sold at £lO 2s. while at the beginning of February the price was about £8 13s. It is antieipited that that bank will amalgamate with another Australian bank. Other expectations which may not have any solid basis, are for a fresh issue of capital to be made by the Union Bank, and, possibly’, by tlie Bank of Australasia. The s-tires of boths banks have hardened recently, but in the case of the Bank of Australasia the dividend has just been increased to 14 per cent. Those who have held bank shares during the past four or five years have done exceedingly well.