THE EXPORT OF MEAT.

New Zealand Herald, Volume LIII, Issue 16373, 30 October 1916, Page 7

THE EXPORT OF MEAT.

!. PAYMENT TO PRODUCERS. !. TERMS OF IMPERIAL OFFER. TWO COUNTER-PROPOSALS. if Tire representatives of Auckland at the J two conferences held in Wellington last week—conferences which have been stated s to involve an increaso of income to the meat-producers of the Dominion to the 1 eitcnt of a million sterling for the next - meat seasonreturned home by the weekend trains, and with their return some » details of the business done at the gatherings became available. To begin with, it should be stated that ' the meat export industry of New Zealand ' has, during the progress of the war, but one customer. Soon after the outbreak of . hostilities the Government requisitioned all tho lamb, mutton, and beef stocks of , the Dominion freezing works, leaving to 1 > tho domestic supply of the country all i such meat as its owners had not, by ' getting it frozen, signified their intention to export. The price, as between the meat-owner and the Imperial authorities, • was fixed in March, 1915, in discussion between the New Zealand Government on the one hand, as representing the Imperial Board of Trade, and the representatives of tho Dominion meat industry on the other. The present visit to the Mother Country of the Prime Minister and the Minister for Finance has given them an opportunity for personally impressing upon the Home authorities the claims of the Dominion producers to better terms of sale than those hitherto ruling. Last week it was announced that Mr. Massey and Sir Joseph Ward had dLicussed the subject with Mr. Runcin.au, president of the British Board of Trade, and that an offer of improved terms had resulted from their negotiations. It was far the submission of this offer to those interested that tho Hon. W. D. S. Mac Donald, Minister in charge of the Imperial Supplies branch, invited the representatives of the producers to meet in Wellington last week. Board of Trade Offer. Briefly, the offer of the Board of Trade was an increase of a farthing per pound upon last season's prices for beef, and seven-eighths of a penny per pound in regard to all classes of mutton. These increases would bring tho rates for the different grades to the following figures :— For lb. > d. Prime ox beef ... _ ... 6 Second and heifer beef 4} Boning beef in quarters ... ... 41 Prime cow beef 4? Sscond cow beef ... ... ... 41 Boneless beef ... ... ... jj Wether mutton, first quality, 721b and under ... ... ... 51 First quality, over 721b &\ Second quality wether ... ... 6J Ewe mutton, first quality, 721b and under ... 4{ Ewe mutton, first quality, over 721b 4} Ewe mutton, second. quality ... i\ Lamb, specially prime Canterbury quality, 421b and under 6 7-16 Lamb, first quality, 421b and under... 6 5-16 Lamb, first quality, over 421b ~. 61 Second quality lamb ... ... 61 Period of the Bargain. These were the prices offered if the arrangement was to be limited to the next meat-freezing season. But the British Board of Trade made a further proposal, that if the New Zealand producers would agree to a tariff which should hold good for the whole period of the duration of the war, instead of merely for one season, the board would increase the terms offered for the two highest grades of lamb by one-sixteenth of a penny per pound, making those prices 6Jd per pound for tho | prime Canterbury grade, and 6sd for first- j quality lamb. ' After consideration of the matter in ] conference, the representatives of the pro- 1 ducers agreed that they would be willing : to make a contract with the Imperial ■, Government on the terms proffered, pro- • vided that the Imperial authorities would ( extend its peri'id to six months beyond [ the termination of the war. The present position is that this counter-proposal of j the producers has to be cabled to London, ] and upon its reception there the future terms of the frozen meat trade depend. Cost o! Storage. ] So much for the problem considered by 1 the producers. The representatives of the ] freezing companies had a separate ques- . tion to deal with. In submitting to Mr. ' Massey and Sir Joseph Ward the proposal ' just outlined, tho Board of Trade also 1 insisted that the storage charges made by c the Dominion freezing companies upon £ meat held for export should bo reduced f by 50 per cent. Since the Imperial ( authorities took over the export meat sup- ' ply. they have paid to the companies one- . eighth of a penny tier pound for storage for each of the first three months, but ' made no payment beyond the three- '''. months' period. So that if the meat was I left in store for even six or eight months, as was sometimes the case, the maximum payment made for its storage was limited ' to three-eighths of a penny per pound, 1 and the Board of Trade had no interest in hastening the clearance of the stores. ! Alternative Proposal. « In answer to the dtmand for a rcduc- i tion in the charge, the freezing companies i have, as the result of their conference, i proposed an alternative arrangement, viz., i that they shall charge one-eighth of a i penny for the first month of storage— is , really for the second month, as the first t month is provided for in the charge made for slaughtering— thereafter one-six-teenth of a penny throughout the period for which the meat may he held in storo. This counter-proposal has, like tho counterproposal of the producers, to be cabled to the Imperial authorities for consideration before finality is reached. Practically, the Dominion companies agree to make the ' 50 nor cent, reduction asked for after the ' first month, provided that the reduced 1 rate is to be applied to the full period of ] storago, instead of being limited to the ( first three months. , It is understood that in making tho proposal for a payment for the full time for which tho meat is held in the Dominion 1 the real purpose is to give the Board of Trade a motive for clearing the colonial freezing works as rapidly as possible, and i so to provide against the blocks in the slaughtering business that have occurred in previous seasons. Effect on Retail Prices. In conversation with a reporter in regard to the proposed new tariff, Mr. S. J. Ambury, chairman of directors of tho Auckland Farmers' Freezing Company, said that the proposed export prices of beef would bo approximately equal to those ruling in the Westtield market at the present time. While he did not think any cheapening of the local market was likely, ho was equally of opinion that tnero was little likelihood of any increase of cost to the household consumer. The j export season would not start until December, and ordinarily a drop in market prices would be expected in November, owing to tho supply exceeding the local demand. This year, owing to the conditions of the trade, that drop would probably not occur, and the equality between tho West-field prices and those of the export market would be maintained. With regard to lamb, it was quite evident that that dish , was going to be a luxury during the war' period. While it is stated that the butchers are, under the present wholesale market prices, working upon a very small margin of profit, it is hinted that they will be materially influenced in their weighing of any proposal for tho raising of retail prices by , the consideration that if such prices are | made too burdensome to the consumer j , there may be a danger of the Government stepping in, through the Dominion Board of Trade, to regulate the market on lines < , similar to those already applied to the I butter market.