MEAT POOL PROPOSALS AND THE ATTITUDE OF HOME TRADE.

New Zealand Herald, Volume LIX, Issue 17984, 9 January 1922, Page 3

MEAT POOL PROPOSALS AND THE ATTITUDE OF HOME TRADE.

(Published by Arrangement.)

The pooling propositions as disclosed up to the present time seemingly give no consideration to tho great difficulties that are certain to ariso in London ar;d the other Home markets, The Belling end of the meat trade will always bo dominant, as prices depend on the supply. demand.

It is nocessary to remember that the British m«dt trade was only recently relieved of Government control, and a renewal will be' moat unwelcomo. - The British meat trade can only oonsidei- the pool proposals as a form of Government control, notwithstanding statements made here to the contrary. We will then commence our pooling operations with a hostile trade at Home, whose previous experiences' tinder years of control make them distrust iiovornmont interference with their trade matters, unwilling to assist, but probably awaiting an opportunity to profit by the control's difficulties which will surely arise. The larger firms, distributors and retailors, aro accustomed to purchasing a part of their requirements aiead, buying to some extent c.i.f. This buying ahead gave many advantages to sellers in New Zealand, as it helped toward steady markets and prevented supplies accumulating in owners hands. This buying c.i.f. will now "be discontinued, the meat business previously carried on between willing buyers and willing sellers brought to an end, all buyers will hold off No-,7 Zealand meat, not knowing what policy (if it Baa ouo) the Board of Control will pursue. Buyers will not, indeed, they could not, risk buying ahead under such conditions, and this fact mil bo obvious to anyone conversant with the frozen meat trade as conducted at Home. . ,

The present competitive selling will bq discontinued, the organised old standing British firms, whose salesmen attend on buyers throughout Great Britain ii to be substituted with an office housing a Control Board, who' will expect buyers to come to them for supplies, otherp-'i'sa an enormous staff, with several provincial offices and all the neceßsarv expenses', will be required to do the selling of meat-. Thiii will present to the American firms' salesmen an opportunity they vail quickly seize and profit greatly from. As there will bo no forward or c.i.f. buying—again bo assured it will cease— shipments will have to bo ( landed and stored on arrival at Home ports,' ali the heavy expenses for cold storage will be incurred, and the producer will have to' pay the cost eventually. The meat trade, buying only their immediate requirements as arrivals from New Zealand increaso, supplies in the possession of the Control' Board will begin to accumulate) or if the supplies are hold back in New Zealand in the supposed regulating of shipments the position will 'be oven worse. The opportunity of realising on any advance will be lost, as the supplies will not ho on hand to sell to buyers who want iVe meat at once—not two months hence—and others will not be slow to reap the benefit. Do not overlook that the American firms can put South American' lamlft on the I/ondon market in about four weeks, or in less time under favourable circumstances, whereas it takes New Zealand eight to 10 weeks to get its meat on the Home markets. - The regulating of shipments or supplies will inevitably mean accumulation, and it is quite possible we will see one season's meat partly on hand ing quantities on the opening of the next season, and there will bo some bad prices realised if this should happen. This inevitable' accumulation of New Zealand meat at one end or the other will weaken the market, .buyers not committing themselves to any but small purchases, storage charges mounting up at the rate of id a month; depreciation m condition, with its consequent loss in the soiling price realised, W iTi weignt, which is always involved with the holding of meat in cold stores, interest on the monev invested in the stock, m all, not less than id (one halfpenny) Per lb. expenses and loss per month to be paid oy the producer is a bill to give him food for serious thinking. Perhaps it if fortunate that the New Zealand producer will be unaware of the conditions that will prevail with the New Zealand meat under the control of one office, and no competitive selling to allow of any comparisons. Our producers will have to accept the version provided for them by the "powers that be, .and will, never know the other side of the story.