FROZEN MEAT INDUSTRY

Lyttelton Times, Volume CVIII, Issue 12935, 1 October 1902, Page 2

FROZEN MEAT INDUSTRY

REPORT OF THE PARLIAMENTARY COMMITTEE. [From Our CoiißESroxDEN’T.] WELLINGTON Sept. 30.

The report of the Frozen Meat. Committee set up to consider tho disposal of the frozen meat of the colony in Great Britain and elsewhere, is a voluminous document. Owing to the limited time at its disposal, the committee explains that its report must be considered in the light of an interim one. Inquiry was made into the complaints that have been made, especially in the Wellington and Hawke’s liny districts, os to the smaller prices that are obtained by breeders of sheep in these districts than are obtainable in the South Island. That these complaints were justified by the evidence submitted is regarded as fully proved. The bulk of the sheep produced in many districts of the North Island are not of equal value with, those produced in the South. After making an Allowance, therefore, the committee is of opinion that the prices paid in Wellington and Hawke’s Bay are not of equal value to the producer to thgse obtainable by sellers dn tho South Island, a result due to the fact that competition for fat sheep is much keener in the South Island, where sales in the open market result in an average standard of prices; nor do the methods which are employed in the South Island of providing artificial feed in winter for sheep, obtain generally in the North Island. In the Wellington district the principal buyers of sheep for export to tho Home market are the Wellington Meat Export Company and the Gear Company, and in Hawke’s Bay Nelson Bros, and the North British and Hawke’s Bay Breezing Company. These, it is stated, invariably work on the same basis, and offer the same prices, with the result that the fatrmer is either compelled to sell to them at the price offered, or make some other arrangement. Apparently, the method of the buyers of the companies is usually to purchase first the heaviest sheep offering, leaving smaller weights for subsequent dealing. The small sheep-farmer, whose operations are nob on a sufficiently large scale to freeze on his own account, or whose financial position may not justify him in doing so, is, consequently, compelled to sell to the companies at the prices they offer, to hold his stock at a loss after it is ready for tho market, to sell it locally, or to take the chance of forwarding it to some distant market, where, if there should not be outside buyers present, ho may again require to fall back on the export companies. Gases were cited where sheep have been forwarded to the Addington market and have there realised higher prices, after paying the cost of transit and all other charges, amounting to about 3s 6d, than were offered 4m the farm by the buyers of the meat exporting companies. Figures are supplied as to the values offered to the farmers, showing that better results were obtained when freezing was done privately, and it is urged that fat stodk markets should be established in the North Island,-and with a view to encouraging the establishment of the same the suggestion is offered that the Minister of Railways should consider how far it is possible to revise the railage rates of fat stock for export. The true remedy to meet the present difficulty would be the organisation of a Co-operative Association, by which a number of different sheep-breeders in different districts could combine for the purpose of jointly having their meat frozen and sold on their,- own account.' Advances made to the purchaser npon his factory receipts would provide the farmer with working “capital, and would secure to him the profits, if any, which now go into the hands of the purchaser of his stock. In tills connection Mr Waymouth, of the Canterbury Frozen Meat Company, informed the committee that though his company had never been a purchaser of meat for export, it nevertheless has developed a system of making advances to sheep-farmers and dealers against stock passed through the hands of the company for freezing, and frequently, though not necessarily, for sale through them as intermediaries. The committee thinks that if the North Island companies were prepared to apply this method to their business a considerable improvement would be effected/ On the one hand the company would be paid its freezing charges, and thus would be guaranteed payment for its labour and the employment of its machinery and methods, whilst on the other hand the sheep-farmer would obtain actually the price which his sheep brought when finally sold in the open market. The chief evil in connection with the sale of New Zealand frozen meat in London and other United Kingdom markets appears to be that it is within the power of individual owners, or agents, to weaken, and, in frequent cases, to cause a decided slump in the market through placing quantities of mutton or lamb npon it at inopportune times and at l/ss than current rates. The committee has come to the conclusion that New Zealand frozen meat will never he on a. sound footing till a central Board is established in London to fix prices from day to day, and thus regulate the control of sales, so as, to prevent slumps through the caprices of individual salesmen. Inquiries should also he instituted as to the prospects of direct shipments to other ports in the United Kingdom than London.