THE MEAT INDUSTRY.

New Zealand Herald, Volume LXIV, Issue 19698, 26 July 1927, Page 12

THE MEAT INDUSTRY.

DECLINING BEEF TRADE.

NORTH! AMERICAN MARKETS.

DOMINION SHEEP INCREASE.

PORK INDUSTRY ADVANCES.

The fifth annual report of the New Zealand Meat Producers' Board, for submission to the electoral committee on August 25 at Wellington, contrasts the declining beef industry of the Dominion, with the expansion of sheep farming, and points to avenues for the development of both on North American markets. The firm maintenance of the Dominion's sheep flocks is noted with gratification, interim returns disclosing an increase of 467,381 sheep over last year, and making a New Zealand flock aggregate of 25,372,374, which was exceeded only in 1918 and 1919. "The last interim lambing returns," says the report, "show an estimated increase of 488,000. and it is conceivable that with the increasing use of phosphatic manures for top-dressing, our flocks will be still further increased." In numbers and weight of stock killed, the past season, climatically favoured as it was, proved very satisfactory and the previous season's record kill of lambs was exceeded by 300,000 carcases. Shipments to London and West Coast United Kingdom ports showed an increase and the decrease in trade with Antwerp, Havre and Genoa was balanced to some extent by new outlets in Port Said, and Uaited States and Canadian ports and Marseilles. > Trade with America.

The report states:—"The board has been closely watching the prospects of developing a regular trade in our meat to the east and west coasts of North America,, and has sent a trial shipment of light and heavy lambs, wethers, and «wes to Halifax and Vancouver, and is nlso shipping beef, mutton and lambs to New York." It is mentioned that the London manager. Mr. R. S. Forsyth, will visit Canada and the United States next September to closely investigate marketing outlets there. A point of interest in the report's comment on conditions in Britain is that that country has over 2,000,000 more sheep than New Zealand and is rapidly increasing its flocks. Of the quantity of frozen lamb imported into Britain last year, 57 per cent, came from New Zealand, and of mutton and lamb combined, 51 per cent, was from the Dominion. Regarding the all-round lower range of values for frozen meat, the report takes cognisance of the depreciation in pelts and tallow and says that although wool margins are on the up-grade, they must yet attain a much higher level before the net return to the farmer approaches the prewar basis. In its anxiety to preserve the good name of the Dominion's wool clip the board contemplates research and educational work on sheep and wool and other pastoral industry problems. The reduction of the bank rate in Britain is cited as a factor conducive to aiding recovery from the coal strike, the effects of which are still apparent. Failing Beef Industry. . Four years ago, says the report, the board directed attention to the serious condition of the beef industry of the Dominion. It was able to secure reductions in "costs of freezing, railage and shipping, which temporarily enabled farmers .to continue running the cattle necessary to successful pasture management in sheep raising. "With our decreasing exports of beef it as evident cattle rearing is becoming unprofitable," states the report. "The board cannot too strongly emphasise the gravity of the disaster if beef raising were allowed to lapse into an unprofitable industry. It would have a very serious effect on the prosperity of the Dominion. It would me. in the deterioration of our pastures, and of our main primary products, which are the backbone of the country. Our greatest assets would be checked in their development. The problem with which the North Island sheepfarmer is faced is, that having grown the cattle, he cannot get a reasonable price for beef, as on the London market he is in competition with enormous supplies of cheap foreign beef." Shipments and Grading.

The decline in Smithfield values is ascribed by the board largely to the vast shipments of chilled South American beef being unloaded on the British market, with a consequent effect on all classes of meat shipped from New Zealand. It notes the diversion of a large proportion of South American exports from the Continent to the United Kingdom. Of the position of the beef industry in New Zealand statistics show 41,000 head as the total estimated killings for 192627, compared. with 53.898 last year, and 114,637. in 1924-25, while prior killings were much greaten The regulation of supplies to the British market had been one of the board's most important duties. Its policy, outlined in the report, had been to maintain a steady flow of meat into England the year throngh. It was not sought to ■withhold supplies to create higher prices' ■ —with their consequent slump—but to effect continuity of market connection. The standard of grading in Dominion •works had been most favourably reported upon and was being fully appreciated .bv the trade in the United Kingdom. The b&ard opposed the idea of altering lamb grading standards to allow of the inclusion of heavier carcases. Growing Pork Industry. The shipping freight contract entered feito by the board last year, says the report, will result in a further saving to the meat producers of £1,117.000 a season on frozen meat, tallow and pelts, compared with the 1922 rates. An increase of 43,666 pigs in the Dominion last year is noted, the estimated New Zealand total being now 516.200. During the past year 75,472 carcases of pork were exported to Great Britain, the Continent, and North America. "The board continues to do everything possible toward ensuring that the pork industry shall take its/rightful place«sn the export trade of a country situated so favourably as the Dominion," says the report, adding that grading will be introduced this season. The large white pig is favoured for export purposes.

MEAT BOARD'S FINANCES

YEAR'S LEVY YIELDS £31,275.

ACCUMULATION OF SURPLUSES.

The accounts of tbe Meat Producers' Board for the year ended .June 30 show that the income was £34,046 14s 4d, comprising levy on meat, exported (less £316, cost of collection), £31,275, and interest on investments, £2772. Expenditure was £21,094, leaving an excess of inconie of £12,952. The principal items of expenditure were as follows:—Expenses of management—head office. £6252; London office, £4139—£10,392; members' tionoraria and travelling expenses, £3074; supervision of grading and loading and unloading steamers, £3022; and advertising, $1054. balance-sheet shows that with the addition of the year's surplus income the fund now amounts to JJy®- The assets inclmja £59,000, jp.