Complete Control of Meat

Manawatu Times, Volume 64, Issue 109, 11 May 1939, Page 6

Complete Control of Meat

Farmers’ Union President Discusses New Restrictions ONLY ONE SOLUTION The announcement just made that certain quantities of meat that have to be held back this year will probably not be a surprise to some but it will be to most, said Mr. W. W. Mulholland, Do minion president, when speaking to the Manawatu executive of the Farmers’ Union yesterday. The indication of the season was, he added, for a fairly light kill and it seemed that they would possibly get through without any actual restriction. Then due to a variety of circumstances it had been found necessary to restrict certain classes of mutton for a certain definite time. That came about because of the action of the British Government which imposed a three per cent, cut on mutton and lamb. In passing, he would like to say criticism of Mr. Nash had been made suggesting he did not do his best to avoid that. That Was unwarranted and he wanted to say that Mr. Nash had done his utmost. Actually if he had any criticism it was that ho had gone too far and forced tho British Government to act on its own. The result of that was that the British Government did not now have an agreement with us and was not morally bound to consult us with regard to any future restrictions. The failure of Mr. Nash to accept what was offered had placed us in a position where we could not complain if we were not consulted in any further restriction. Actually we had placed a restriction on British imports that came into this country. A voice: Are Australians in the same position? Mr. Mulholland: Yes. Undoubtedly Mr. Nash did his very best as he saw the position, continued Mr. Mulholland, and we had now to look at the facts of these things and what were wo going to do about it? It was hoped there would be no necessity for taking actual action this year. The position had arisen but it was not going to cause any actual inconvenience at the moment. It brought home very clearly the position with regard to the future. They had a lighter kill than normally this year. Next year it would be considerably heavier and a great deal, possibly the whole, of the owe mutton would bo involved in the restriction. We would carry forward quite a considerable quantity from this year and that would also have to be taken into account. In regard to next season it looked a certainty that the restriction would be a great deal heavier or should he say it would affect them more. He was basing his opinion on the lines of three percent. less than last year.

It appeared they would have a considerable amount of meat that they could not ship. Immediately they had even a small quantity of goods for which there was no market there would be a reduction in prices or in other words if they could not send away 50 per cent, of the ewe meat then the whole of the ewe meat was reduced in price and would be practically valueless. Marketing and market values were to a considerable extent a question of psychological reactions. They talked about supply and

demand and even talked as if certain physical things were valued on certain physical lines and that was not true. He said definitely that supply and demand were a very important factor at least as great a factor was the psychological reaction of the seller and the buyer. What would be the effect of a million carcases that were not marketed? The seller and the buyer would both be influenced. The seller would bo influenced by tlio fact that her or his neighbour had to sell old ewes or give them away for practically nothing and it would have the effect of reducing the value of practically all mutton.

He was afraid the reflex values would penetrate into tho lamb market and could see no reason why it should not. What were they going to do about it? They must not allow that unwanted quantity of meat to come on the market. That was the only solution and that could only be done by complete control in New Zealand of at least the whole of the internal marketing of our mutton. That might involve complete control of lamb as well. The question arose as to who was to control that. Well, they had just to do it themselves or let the Government do it. He was not sure that they had a choice actually. They knew the Farmers’ Union policy was to have producer control of marketing all the time and they had tho organisation.

They had the Meat Board which, he thought had sufficient power to carry that out except that Orders-in-Council would have to be passed by the Government. For the Meat Board to have complete control it required certain amendments. If they did not make their minds up the position was going to be so desperate for the farmer round about 1940 that they would demand that action be taken. It would have to be done quickly and it will be done like the import restrictions and it will be done badly. They had to take this matter in hand now. They had to remember that the Meat Board could not get the power unless it had the farmers behind it. They had to make up their mind that they did want the Meat Board to handle it. The Meat Board was drafting a scheme to handle it that would handle the problem properly. What was being done this year was that various meat buying firms were carrying the baby and it looked to him that it would bo a very profitable baby to carry. It meant that they would carry the stocks and the farmers would have to carry the losses and the farmers had to have tho organisation, and he could see no way to deal with this satisfactorily unless by dealing with the whole of tho production in New Zealand. He failed to see how tho local

side could be kept separate from the export. The situation was not of their making but they had to handle it in the proper way.