PROPOSED MEAT POOL.

Manawatu Times, Volume XLVI, Issue 2006, 23 December 1921, Page 5

PROPOSED MEAT POOL.

INTERESTING CABLE FROM HOME. LATEST LONDON PRICES. PROBABLE EFFECT OF SCHEME. That the proposal of the Prime Minister (Mr W. F. Massey) to establish I a meat pool has created considerable I interest amongst the big marketing j concerns at Home is apparent in the text of a cablegram received yesterday by Messrs M. A. Eliott, of Palmerston North, from their principals, Messrs Gilbert Anderson and Co., Ltd., London. The cablegram, which was shown to a "Manawatu Times" reporter yesterday, read: "The present unfortunate position is entirely due to the abnormal circumstances during the transition period, accentuated by strikes ot freezing works' hands and waterside workers at. the commencement of last season. Matters should have the fullest consideration before abolishing by legislation the free action of the individual. Our opinion is that growers are being seriously misled by statements at your end, which should be refuted. Retailers are now experiencing keen competition, particularly from the large stores. Butchers' prices for New Zealand frozen meat are: Wether legs Ud, shoulders BJd. loins 7d, breasts 3d, lamb legs lid, shoulders IOJd, loins 7d, breasts 4*d. The best shops are using homekilled meat and others cheaper American brands. The prospects are good if used wisely. Business can only be retained by selling and keeping trade on to our New Zealand supplies. Every endeavour is being made here to reduce charges and to eliminate damage." FARMERS' POSITION OBSCURE. Expressing his opinion on the scheme, Mr Eliott said: "It means that every farmer, whether lie wants to or not, must consign his meat through this pool. Fully 75 per cent, of the farmers, as i. rule, prefer to sell outright. What is going to be the position? If the pool buys, then they immediately become speculators. If they won't buy, to whom is the farmer going to sell ? There is no doubt that the present slump in prices is entirely due to the law of supply and demand. Enormous supplies have reached the English market just at the time they were least required. As soon as the present glut of supplies has worked oft the market should again improve. It is very doubtful if the proposed pool can hope to regulate or control prices in any way. So far as beef is concerned, only about 41 per cent, of the imports into the United Kingdom come from New Zealand, so it is obvious that supplies from our country cannot have any voice in the control of prices. Mutton and lamb, of course, are In different positions. But, even with these, the law of supply and demand cannot be got over. Referring to the prices quoted in the cable, Mr Eliott said it was very evident from the wild statements, made from time to time by New Zealanders returning from England, regarding the high prices being paid by the consumer for our frozen meat, were very wide of the mark. He was of opinion that Government interference should be limited to the extent of securing or endeavouring to secure lower freezing and freight charges, i which were out of all proportion to the value of the products. The present channels of marketing, which had been built up during the last thirty years, should not be interfered within any way.