THE FROZEN MEAT TRADE.

King Country Chronicle, Volume XII, Issue 1222, 10 June 1919, Page 7

THE FROZEN MEAT TRADE.

Willi the termination «>f the war and the gradual removal of Hi'* restrictions inevitably associated with the war the frozen meal trade will enter upon a new era. Already there is considerable speculation as I" the course which Ibis important industry is likely to take. Messrs Weddel and Go. commence their latest annual review of the trad** Willi the remark llial "there was virtually no 'trading* in meals in JJM8 —but merely distribution under official regulations so designed as to control absolutely both consumption and prices." A large part of their review is occupied in a comparison between private management and Government control with the view of judging: which will be the best and most prudent course for the rulure. As might have been expected, criticism is levelled by .Messrs Wcddel against both lh« system and the method of government control. Even when allowance is made for a certain inevitable bias on their part Hie criticism which they offer merits careful consideration. While they admit that the Government acted wisely in forcibly checking" Hie consumption of meal by Hie adoption of a rationing scheme, Ihey conlend llial the meat ration was needlessly cut down and thai the warnings issue,! by the Ministry of Food as to Hie risk of a. meal famine were unnecessarily alarmist. As a matter of actual fact the United Kingdom has emerged from a war of more than four years" duration with its Hocks ami herds practically intact, so that, despite the falling ofr in Hie supplies of imported meal, then? was, it is contended, no justification for the action of the Government in reducing the nominal meat ration of the civil population by so much as iO per cent, below normal. The most serious charge against the Government, however, is that of profiteering in respect of the people's food. The great discrepancy between the prices paid to meat-growers in the dominions and the prices demanded from the consumers at Home has been the subject of frequent comment in New Zealand. The answer given by Messrs Wcddel to the question as to where the difference between these prices went represents the Imperial Government as having made heavy gains on the meat-purchase transactions. "Lambs bought in Australia and NewZealand at prices averaging about s*d per lb, free on board, have," they say, "been sold to the public at prices averaging about is 2d per lb wholesale. After making every allowance for the inflated freights credited to a Government department, and for increased out-of-pocket charges for insurance, storage, land transport, salesman's commission, etc.. the margin of profit retained on such purchases was un- j reasonable. No private profiteering in any class of goods can ever have reached such dimensions." The case is put in a nutshell by contrasting the customary profit of Jd to {d per lb with which private traders were content in pre-war flays with the 2d, 3d, and even 7»il per lb profit exacted by Hie Government through Hie Ministry of Food. Messrs Weddel and Co. round a grievance also on the "short voyage" policy under which the British Government not only paid higher prices to the foreigner than to the Empire producer for meal supplies, but also provided the foreigner freely with freight which was denied to the Empire producer on account of the greater distance of the dominions from the Home market, so that preferential treatment and facilities for marketing were granted to meat • \porters beyond the Empire. A dis-l-.t.-Monate view of the circumstances must compel the conclusion that, at a firm- of a serious lack of tonnage, the "-hoii voyage" policy was necessary. The Hrect of it, however, Messrs Weddel contend, has been to increase the menace of the American Meal Trusl, because it has extraordinarily strengthened its financial position and expanded its trade connections. The method which is recommended by them for combating this trust is that of Empire preference operating through the encouragement of Empire production and the fostering of British trade. The immediate removal of Government control of the meal trade is strongly urged, as tending- to an all-round reduction of prices and the consequent cheapening of Hie food of the people. l"pon the action of the British Government in purchasing the New Zealand export until June, 1920. Messrs Wcddel comment unfavourably. "It in difficult !•» see." they remark, "how that rery recent purchase can be justified as a war measure, seeing it was made after the armistice was signed. As a speculation in meat it has been entered-upon at 100 high a cost for safely; and, in order to protect its position in the market, there is considerable temptation for the Government to purchase the outputs of other countries. If this course should be adopted the position of Hie Government may become so compromise,! thai il will find itself constrained to retain complete control of the trade long after the conclusion of peace." fin the other hand, Messrs Weddel are of the opinion, after carefully viewing Hie world's statistical position, that unless high prices for meal are artificially maintained by Hie continuance of Government control "a reduction of from 25 to 50 per cent, from the present inflated level of imported meals is quite, within the range, of possibility, am/ even then prices would be 50 per cent. Higher than at Hie outbreak of war."