THE MEAT INDUSTRY

Manawatu Standard, Volume LXI, Issue 97, 24 March 1941, Page 6

THE MEAT INDUSTRY

USE OF STORAGE SPACE GOVERNMENT DECISION. Per Press Association. WELLINGTON, March, 23. Following recent communications from the United Kingdom Government, Hon. J. G. Barclay (Minister for Marketing) announced tonight that, in view of the necessity of making the best possible use of storage space in freezing works, the ' ■ Government had decided that as from Monday, March 24, acceptances by freezing companies of stock for freezing for export will be confined to lambs, prime" beef, and porker pigs up to 1201 b weight.

Commenting on this decision the Minister referred to the position at the outbreak of war when, on September 5, 1939, the New Zealand High Commissioner cabled that His Majesty's Government in the United Kingdom was prepared to purchase the entire exportable surplus for 12 months of frozen beef, mutton, lamb, and pork within a weight range of 120-1801 b, also edible offals as at present shipped. "This offer," said Mr Barcla.y. "was accepted and after lengthy negotiations an agreement was completed between the Dinted Kingdom and New Zealand Governments whereby the former undertook to purchase a minimum quantity of 300,000 tons of meat and they expressed their desire to lift all our supplies. "The completion of this contract in the first place resulted in the disposal of approximately a million carcases of mutton, which at the outbreak were in store and for which at that time there appeared to be no market available. The agreement between the two Governments ultimately resulted in 350,921 tons of - meat "being shipped from this country to the United Kingdom during the 1939-40 season. REDUCED QUANTITIES.

"Prior to "the termination of th'r 1939-40 contract, negotiations were again commenceu for a iuitner contract on similar conditions lor the supply of export meat during the 1940-4 i season. Tne discussions which followed centred round the Dominions desire to obtain a contract for 300,000 tons of meat, plus all the excess that could be lilted, and an alternative indication from the United Kingdom Government that it desired to contract for a quantity of 275,000 tons plus all the excess that could be lifted with the shipping available. "These were the essential points of difference in the London negotiations as indicated to the New Zealand Government in a cable from Mr Jordan on October 10 last. A little over two months later, on December 20, a further cable was received from the High Commissioner saying that on account of the shipping position the United Kingdom Government desired.to reduce the quantities of meat to be supplied by Australia and New Zealand during the current production season in order to enable larger supplies to be obtained from nearer sources.

"The quantity then stated for the New Zealand contract was 217,656 tons, plus 21.000 tons of baconers. At the same time the United Kingdom Government expressed its intention to lift more meat from Australia and New Zealand if it were humanly possible to do so. "On Jlarch 5 the High Commissioner sent a further cable indicating that the quantity of meat from New Zealand would be "reduced to 180,556 tons, but if it were found possible a greater quantity would be lifted. CONFERENCE COMMITTEE. "On receipt of this cable the Government decided to convene a conference of all parties interested in the meat industry. At this eonierence a hill report oi the negotiations was presented, together .with details of the present stock and storage position and a representative committee was appointed.

"The purpose of this committee was to acceiLain how the Dominion could organise its primary productive facility to ensure the minimum loss to tile Dominion and the producer in the present crisis. The committee was also advised that the policy of the Government during the war. and the crisis associated with it is to ensure that difficulties i connected with problems which arise, and which may entail undue losses to any section, shall be 1 shared by the whole community. ■'The committee met on several occasions and, after surveying the position, submitted recommendations to the Government. The Meat Board also submitted further recommendations. After careful consideration ol the recommendations of the representative committee and the Meat Board the Government decided in the meantime to make the decision which 1 have alreadv announced. "This decision is largely based on cables dated March 6 and March 14 which were received from the United Kingdom Government conveying instructions that, in view of the refrigerated tonnage position, the following categories ot meat were not to be shipped until further notice: Boneless beef, boneless veal, baconer pigs, chopper pigs, boneless chopper pork, and boneless ewe mutton. "To ensure that the best possible nse is made of the available storage space the Government has decided that in addition to the categories mentioned by the United Kingdom, wether and ewe mutton shall also be excluded in the meantime, which means that acceptances by freezing companies for freezing for export will as from Monday, March 24, be confined to lambs, prime beef, and porker pigs up to 1201 b. .*.,,, ~ "This covers the main points, said the Minister, "with regard to meat other than baconers. Arrangements with regard to baconer pigs commenc-1 cd with the negotiations in Mav, 1940. when the High Commissioner stated that the United Kingdom Government would like to take more frozen porker carcases, particularly baconers. This desire of the United Kingdom Government to obtain the maximum quantity of baconers is further shown by the fact that when the quantity basis for 275,000 tons of other meat was .mentioned an additional quantity of 21.000 tons of baconers was asked for.

"When the reduced meat figure of 217,050 tons wai mentioned, the High Commissioner stated that the Ministry's case is that baconers should be excluded from the calculations of reductions, since it wanted all that Australia and New Zealand could supply. The New Zealand Government, in view of the previous statements, was surprised on March 6 to receive a cable stating that shipments of baconers were to be stopped immediately. BACON PIGS. "The future policy with regard to baconers for export is under immediate consideration of the Government, but, of course, we must under present conditions give immediate effect to the

requests of the United Kingdom Government." On being asked what the Government proposed to do to protect the meat producers, Mr Barclay stated: "On July 24, 1940, the Minister of Finance, who at that time was also Minister of Marketing, stated in the House that the Government would purchase all meat produced for export during the 1940-41 production season at prices to'be determined, such prices being approximately the same, if not the same,' as the prices .at which it was buying for the current season. This statement was subsequently, confirmed by the Prime Minister and is the present policy of the Government." The classes of meat and stock which would normally be accepted for freezing for export and are not now accepted will be dealt with later in accordance with the policy announcements of the Prime Minister and the Minister of Finance, but in the meantime such stock must be kept on the farms. • "As soon as the position has been fully examined and investigated," the Minister concluded, 'I will announce the policy of the Government with regard to the classes of meat not at present accepted by freezing companies for freezing for export."