MEAT TRADE

King Country Chronicle, Volume XXVII, Issue 4458, 17 October 1933, Page 2

MEAT TRADE

OPTIMISTIC NOTE. OTTAWA AGREEMENT. EFFECT IN NEW ZEALAND. An encouraging and optimistic note regarding the meat industry in New Zealand was struck by Mr. D. Jones, chairman of the New Zealand Meat Producers' Board, in an interview with a Wellington Post representative on his return on Wednesday by the Tamaroa from Southampton after a visit to England in connection with the freight contracts for New Zealand produce. Mr. Jones said that the outlook for meat during the coming season was distinctly encouraging. He would not venture to forecast prices, but, he said, it was reasonable to expect a very substantial increase over last year.

Not only had meat improved, he said, but wool, pelts, and other byproducts were all selling at advanced prices, and the output of lamb from Australia promised to be much less than the previous year. His advice to the farmer was to be very wary about selling his stock forward. He was hard up and entitled to every penny that his stock was worth. Ottawa Agreement. "The Ottawa Agreement as far as New Zealand is concerned," said Mr. Jones, "has been freely criticised. I have never had any doubts about the substantial gain the Dominion received through that agreement. The New Zealand proposals were in the main adopted, except that we did not get a duty on foreign meat entering Britain. This was rejected principally because of political difficulties in Britain and the financial loss to . her has been greater. The effect of the Ottawa Agreement and the further treaties and agreements arising therefrom is that 40,000 tons of beef and 1,000,000 carcases of mutton and lamb have been definitely excluded from Britain for the year 1933, and this will be increased by a 5 per cent, reduction on mutton and lamb on January 1, 1934, and a further reduction of 5 per cent, on April 1, 1934, making 35 per cent, reduction in all. The reduction in bacon in the first half of this year was some 16 per cent, below the corresponding period of 1932, and the produce will be progressively reduced as Empire supplies increase. If this meat had been allowed to flow unrestricted into Britain a complete

collapse in prices would have taken place. Before restriction the average prices were:—Lamb, 5d per lb; wether mutton, 3d; ewes, 2d; frozen beef, 2d, and these prices, we believe, could not have been sustained. Such a position would have meant that our wether mutton and frozen ox beef might have paid a little more than the expenses of shipment, while cow beef, boneless beef, and ewe mutton would have been valueless, and lamb prices far below the cost of production. Market Healthy. "The effect of the preferential system in favour of the Dominions inaugurated at Ottawa was to definitely block the huge quantity of meat from Britain. The accumulation of meat took some time to go into consumption, but the glut now has been relieved, and the market for mutton and lamb, and pork particularly, is in a healthy position. The Dominion exported to Britain last season about 11,000,000 carcases of mutton and lamb, and the whole of this will have gone into consumption before the new season's meat arrives in Britain. My board last year increased its advertising efforts, and through this our expenditure was more than our income. This expenditure has been amply justified, and there is no Empire product in Britain to-day as well advertised as New Zealand lamb. Over 12,000 butchers' shops display our attractive advertising with its continuous appeal 'Ask for New Zealand lamb— British to the backbone —and the best in the world.' Our advertisements appear in papers and Home magazines that have a circulation of 2,300,000. We have made the retail butcher our friend by advertising and pushing his sales, and we are getting the results. Shipping Service Improved. "In the last five years we have concentrated a great deal on the north of Britain, where it was always maintained our meat was too good and heavy to sell. In 1929, 907,000 lambs were shipped to west coast ports. This year we will almost touch 2,000,000. This increase has enabled the board to improve the shipping service, and with the inc/ease in dairy produce the two boards in co-operation have now arranged with the shipping companies a very satisfactory service that will further improve our. position and output." Besponsible circles in England, said Mr. Jones, considered that the

financial and trading position was definitely improving. In August there were half a million more insured persons in employment than at the corresponding period last summer. The reduction in unemployment meant a saving of £220,000 a week, which amounted to over £10,000,000 a year.