Manawatu Evening Standard. THURSDAY, OCTOBER 1936 ARGENTINA’S BEEF TRADE.

Manawatu Standard, Volume LVI, Issue 260, 1 October 1936, Page 8

Manawatu Evening Standard. THURSDAY, OCTOBER 1936 ARGENTINA’S BEEF TRADE.

Early in August the British Government gave notice to end the Anglo-Argentine Trade Agreement on November 7. It was stated that the notice was a mere matter of form, at least that was what was being said in London, the object being to induce Argentina to toe the line. It was suggested that Argentina was making difficulties about the quota, but the levy is said to be the real source of trouble, for Argentinians regard the quota as much the lesser evil of the two. Argentina is in a difficult position. One cannot speak of her beef industry as a whole, for the industry is divided up into the actual producers, or cattle-breed-ers, wlio are mainly Argentinians; the concerns which do the chilling, 85 per cent, of ‘which are foreign, mainly British and American; and transport companies which are wholly British, and are largely subsidiaries of the chilling and freezing companies. It is stated that only about 15 per cent, of the meat exported to Britain is carried through by Argentinian concerns, and this 15 per cent, includes co-operative organisations. The Argentine stock breeders are convinced, rightly or wrongly, that they themselves will have to bear the whole of the levy, which it is generally assumed will amount to jd per pound of beef. They argue that the British consumer will not pay it, for the simple reason that even at present prices the British public cannot afford to buy all the meat that it wants. They argue that it would not be so bad if the levy were shared by the various interests concerned, but the indications are that it will not be so divided. Transport interests will not contribute anything towards it; freights will not fall because (a) the quota is fixed, (b) ships are dear. The vessels which transport chilled beef to Britain are of a special type, specially and expensively fitted out for the purpose. Moreover, there is little or no competition. The concerns which do the chilling are in a strong position. They fix the prices, and they will see to it that they do not lose. Hence the whole of the levy will fall upon the stockbreeders.

It is a generally accepted fact that the Argentine stock-breeder has done a great deal to improve his cattle so that it would yield meat to satisfy the discriminating taste of the British public. But if the Argentine producer no longer gets a remunerative price for his meat, he will no longer be able to spend money on quality improvement and maintenance. Argentina, it is said, does not object to the levy, although she eaiinol be expected to welcome

it; what she objects to is that the levy might kill the industry. Britain is Argentina’s only big market for chilled beef. She has no other outlet, and that is her weakness. But Argentina is also at present Britain’s only important source of supply for chilled beef, and this is Argentina’s strength, for treaty or no treaty, Britain must obtain supplies from the republic.