FROZEN MEAT TRADE.

New Zealand Herald, Volume LX, Issue 18565, 24 November 1923, Page 9

FROZEN MEAT TRADE.

ADVERSE LONDON FACTORS.

MUTTON AND LAMB PRICES.

HIGH GRADING STANDARD URGED

The adverse conditions of the frozen meat trade were discussed yesterday by Mr.. M. A. Eliott, of Palmerston North, on his return by the Makura from a visit abroad. Mr Eliott made a special study of the meat and wool markets in the United Kingdom.

Mr. Eliott said the buying power of the British; public was now so much reduced that it was impossible for them to pay high prices for foodstuffs. The prices paid here last year for beef, mutton, and wool w"Bre never warranted by selling values in the United King, dom. Buyers and exporters in New Zealand, merchants and importers in Britain, had all lost considerably; in fact, it was stated that £2,000,000 would not cover the traders' losses. Ofing to agents . and merchants endeavouring to obtain prices which would approximately cover costs, traders and retailers were driven to purchase South American and Australian lamb, whicfh was in plentiful supply at 3d per lb. lower than New Zealand. Several stallholders at Smithfield informed him that for the first time for 30 years they had been forced to obtain "their requirements from South American agents. There was no doubt the quality of South American lamb had improved considerably, while New Zealand, for last season at *\ny rate, had shown a falling off.

1 Argentine Competition in Beef. As regards beef, Mr. Eliott said that when it was remembered that prime Argentine chilled ox forequarterai wera selling for weeks as low as 2j[d per lb., and the Smithfield market was flooded with as much as SO per cent, in excess of normal requirements, it would be seen what a disturbing influence this had on our lamb trade. The British retail butcher was making such a large profit on beef that he encouraged his customers to buy that instead of lamb or mutton, on which his profits were very little or 'notching. In restaurants and the cheaper hotels a good plate of roast beef would be served for Is to la 3d, while lamb would be 2s to 3s for a very small helping. 'An enormous quantity of Dutch .Jid American pork and veal had also been freely offered at low prices compared with our mutton and lamb. "If New Zealand desires to retain supremacy in the. frozen lamb .trade," said Mr. Eliott, " every effort must be made to improve the breeding and keep up the high standard of grading. Our prime lamb commands a good price, _ but second-quality comes into competition with very much cheaper Australian, and South American lamb. What is _ desired by all sections of the ftrade is some stability in prices, but even if the values are on a lower basis it will .be better for everyone, including the producer.* Too many second-quality lambs were marketed." :V

• Britain, Practically the Only Market. < : " The beef position appears to be hope^ less as far as New Zealand is concerned," continued 'Mr. Eliott. "There is a large surplus of cattle _in all ex*w*ing countries, and it requires only a small increase in prices in the United Kingdom to attract immediately South American consignments m excess of requirements, wben prices again drop to a low level." In Mr. Elliot's opinion) England must continue to be for. a considerable titae at least the market for 99 per cent, of our shipments. Europe could' not afford to buy, and America had put up a tariff wall which prevented us selling there. The East might take a limited quantity, but even China was exporting some frozen meat to England. Mr. Eliott sav? several lots on the Smithfield market. London' would continue the best port, as other ports in Britrin quickly reached saturation point.