THE FROZEN MUTTON TRADE.

New Zealand Mail, Issue 1200, 1 March 1895, Page 7

THE FROZEN MUTTON TRADE.

From Our Special Correspondent. London, January 4 It would be a work of supererogation and an impertinence for a mere journalist to venture upon a review of tho frozen meat trade vv'.ien such an exhaustive compilation as that of Messrs W. Weddel and Co. is to hand to quote from or for publication in toto. New Zealanders, however, are uot materially interested nowadays in the frozen beef trade, so Lshall only excerpt those portions of the report which have a direct bearing on the past feelings and the future prospects of frozen mutton oil the Home market. >: Messrs Weddel characterise the past year as one of general disappointment to most of those concerned in the trade " atid state that the receding tendency of Values year by year, which they opecially called attention to in '93, lias received fresh confirmation from •the experiences of the twelve months "under notice. They do not deem there : are sufficient grounds for hoping that the tendency has yet spent itself Of the remedies available to shippers they dismiss " reduction of output" as inapplicable and unduly pessimistic, and favour the practicable remedies of regulating shipments, reducing wriking expenses, and extending the outlets for the sale of fi ozen meat. The importation of frozen mutton "and lamb into the United Kingdom during '94 aggregated 4,374,545 carcases, of which quantity New Zealand supplied 2,031,000. The total quantity imported exceeded that of '93 by over 489,000 carcases. There has been less diversion of cargoes from London and Liverpool than was hoped for a year ago, but it is expected that the year now wi:h us will witness material development in direct shipment to other ports. The Manchester stores will be ready in a few months to receive direct importations. During '94 10,650 New Zealand sheep were delivered ex "Opawa" at Liverpool, 37,000 River Plate sheep to Cardiff, and 81,630 at , Havre for the French markets.

NEW ZEALAND MUTTON. The irregular order of ths arrivals from New Zealand tended largely to disorganise the tirade throughout the year, and a comparison of the shipments month by month with those of 1893 shows clearly how spasmodically the stocks in London were replenished in the year gone by. The arrivals for the first three months were about 45 per cent, less than in the corresponding period for '93, and for the last nine months of '94 the carcases imported exceeded by 23 per cent, the number arriving during April-December, 1893. ,

; QUALITY AND GRADING. Regarding quality and grading, Messrs Weddel state that the New Zealand shipments for the year were characterised by more irregularity in quality than usual. Some of the lest brands maintained and even improved upon their reputation for careful selection of carcases for quality and weight; but several of the less popular brands have lost further ground owing to the unreliability and frequent inferiority of the carcases shipped. South Island mutton arrived at about us good quality as usual, but many of the North Island sheep must have been exceptionally poor in condition when killed. The freezing companies which make a practice of systematically grading their meat maintained the standard of quality more successfully than those which ship their meat ungraded. Apart from any ques'ion'.of grading large numbers of vory fit tdiwp, very thin sheep and old ewes found thenway home from .New Zealand and prejudicially affected the general value of consignments from the Colony. The growing trade in Australian and River Plate sheep renders it necessary for New Zealanders to

OBSERVE THE GREATEST CARE in keeping up the quality of the mutton exported, otherwise the still existing differences in market value between New Zealand and other frozen mutton cannot possibly be maintained. .'During the year a very considerable number of New Zeala-nd sheep, owing entirely to their inferior quality, irealised less money than Australian or IRiver Plate carcases sold at the same "dates. Australian sheep showed all-round improvement in quality during 1894. 'The ordinary standard for merinos •weighing about 501 b has become wellestablished, and though the importation ~©f prime 501 b to 60lb crossbreds is not

either regular or very large, the carcases marketed warrant the belief that such sheep will build up for themselves a special reputation. They will not, perhaps, compete direct'y with the best grades of New Zealand sheep, but they will no doubt affect the value of ordinary crossbreds from that Colony. In advising the Australian shippers to adopt systematic grading, Messrs Weddel give them A WORD OF CAUTION,

which I think may be given to New Zealanders. They say " graded sheep are expected to be of prime quality, and not simply carcases of the requisite weight. The cost of the operation will piobably be thrown away upon inferior carcases. When prices are low there is every inducement to be exacting in respect of quality before shipment, since the probable difference between net boiling down value and net frozan meat value is sd small in the case of second or third rate carcases, as to offer but little inducement to freeze them."

RIVER PLATE SHEEP it seems turned out -badly in the first half year, but improved during the last six months to average good and in some shipments almost prime. The proportion of good crossbreds from this quarter increases steadily, and the latest reports indicate that a further general improvement in quality will be found in forthcoming consignments. During '94 the Plate increased its shipment of mutton to the United Kingdom by o«ly 41,000 sheep, which increase came mainly on the London market. Liverpool continues to be the best distributing centre for merinos and small crossbreds.

LAMBS Thegeneral quality of shipments from New Zealand wa3 irregular. As in the case ef mutton, some of the best brands (graded) more than sustained their high reputation, but in some of the secondary and ungraded brands, there was a noticeable falling off, especially in parcels from the North Island. Australia supplied 12,500 carcases at irregular intervals, but though the aggregate fell short of the previous year, the quality on the whole was a decided improvement on that exhibited in the '93 shipments. Some of the consignments,, indeed, consisted of caicases of really prime quality, averaging well over 401 b, These lambs commanded the attention of buyers, and though a good many were too big, others realised quite as much money as good average New Zealand lambs on sale at the same time. The prospects for the ensuing season Messrs Weddel consider fairly satisfactory, but in view of possibly increased arrivals from Australia, it is by no means certain that New Zealand shippers will again enjoy the advantages of an understocked market during the first quartet of the year unless, however, Australian exports are of really prime quality they cannot to any material extent take the place of New Zealand lambs. The general tendency of values can hardly fail to affect the prospects of frozen lamb, and if imports increase by more than 10 per ,cent or come to hand as irregularly as in '94, Messrs Weddel fear that the downward drift of prices may be accelerated.

FORWARD BUSINESS. Business on the c.i.f. basis was probably larger in New Zealand mutton and lamb during '94 than in the previous year, but it U not possible to ascertain the exact proportion of trade done in this way. The prices ruling in London during the first quarter of the year gave a nor margin of profit to buyers before shipment, <<ur. the advantage was wholly on the colonial sellers' side for the remainder of the year. A good deal of the mutton shipped froai the Colony in execution of English orders failed to reach the requisite standard, and numerous claims had to be met in consequence, but on the whole, contracts made were satisfactorily carried out. Faulty grading doubtless led to several of the claims.

STOCKS. On this head I will quote from Messrs Weddel verbatim : The question of cold stoi age accommodation in London had an unusual amount of attention directed to it in 1894. Although on 25th March stocks of New Zealand mutton in London were reduced to nil, during the larger half of the year the various stores were unequal to the task of accommodating the shipments arriving from Australia and New Zealand j and at different

intervals six or seven steamers and one sailing vessel were put into commission as freezing stores a purpose to which they are but ill-adapted considering the cost involved. The existing stores in London possess a theoretical storage capacity of 650,000 to 700,000 carcases (calculated in 601 b carcases) ; but when consignments are stowed to marks, these stores hold only about 500,000 carcases. If, however, the capacity of the store vessels be added on the same lines, it may be estimated that at times during 1894 the equivalent of not fewer than 600,000 carcases were being held in London by the various importers and consignees engaged in the trade, besides the 250,000 carcases probablj held at the same time in Liverpool, Newcastle, Cardiff, Birmingham, Leeds, Glasgow, &c. Roughly speaking this represented ten to twelve weeks' average consumption of frozen mutton, lamb, or beef, and it is doubtful if any larger proportion of the year's imports should, in the best interests of the trade, be held in store at this end at any one time. Certainly the diflicuUy of maintaining prices will be permanently increased if so much stock of a perishable nature is held in store at the place where sales have to be made, as the principal buyers here are at all times well informed as to the position

of stocks in the London stores. If large reserves must be held from time to time, there can be no doubt that values would be strengthened all round, provided it could be arranged to hold such reserves in stores in the colonies until required for shipment. There would then be some likelihood of despatching steamers at stated intervals throughout the year. The advantages likely to accrue to shippers through the consequent steadying of the London market, and the probability of securing better terms for freight, if regularity of despatch could be guaranteed, would probably outweigh in, a year or taro the cost of erecting additional storage accommodation at the various freezing works in New Zealand and Australia.

Owing to the congested state the London stores during the greater part of the year, no reduction of charges for storing was obtainable. A considerable loss of space is caused by the* large number of small parcels received for storage, and the Dock Company has recently made an extra charge for lots of less than 100 carcases. If larger lines were shipped under each mark or grade, some concession in rates might be looked for, on the ground that there would be less loss of floor space and less trouble in keeping records of separate marks. This is a comparatively trivial matter, perhaps, but it goes to show how, even in minor details, savings may be effected: by working the trade on more wholesale lines than hitherto.

The London and India Docks Joint Committee is building two additional stores in London, viz. :—At Smithfield for 80,000 carcases, and at the West India Dock for 100,000 carcases. The present Victoria Dock store is being increased by space for 50,000 carcases, thus raising the total capacity of the Dock Company's stores to v about 450,000 carcases. The other London stores can hold a similar quantity, so that the cold storage accommodation in London by midsummer next ought to suffice for all likely requirements of the trade. The Docks Committee i.lso intends to include in one or more of the above extensions the arrangements necessary for artificial thawing. The Manchester Corporation store, now approaching completion, is intended to hold about 120,000 sheep; and further stores are projected at Hull and Glasgow. The year has been characterised by | unusual and most undesirable irregularity in the arrival of supplies. The erratic movements of steamers on the New Zealand and Australian coasts, and consequent uncertain departures, caused, directly and indirectly, serious losses to the owners of the meat cargoes. The successful conduct of the industry was subordinated to the convenience or necessities of shipowners, instead of the movements of vessels being dictated and regulated by the requirements of the trade. No serious combined attempt appears yet to have been made to remedy this anomalous state of affairs, and for lack of some concerted action as to sailing dates from the colonies, shipowners as well as shippers seem likely to continue to lose money which might possibly be saved. If the erection of additional storage accommodation at the various freezing works, as well as, or even in preference to, a large increase in London, could be arranged so as to allow

of regular sailings throughout the year, a vast saving might be looked for in respect of detention of steamers in the colony, demurrage in London through stores getting blocked, and consequent all round depreciation in value. 'J he waste under the existing system is difficult to estimate, but it must be a very considerable item; and it seems only reasonable to assume that the saving likely to be effected by prices being supported at this end would soon pay for the erection of additional colonial storage.

CONTINENTAL MARKETS. The low level of prices current in the British markets afforded the desired opportunity for making a commencement on an attractive fbasis of cost, to Continental buyers : while, at the same time, some relief was obtain from the pressure of supplies of Queensland beef in London, by diverting considerable lines to these new markets. The ultimate importance of these markets cannot yet be estimated, but although their development will demand a great deal of pioneering work, a fair start has now been made. The latest statistics of population, and of the flocks and herds, in several of the largest European countries indicate very clearly the growing dependence of these countries upon external sources for their supplies of fresh meat, and the pressing demands of their ever-growing industrial masses, must, sooner or later, sweep away the many restrictions imposed by governments acting in the interests of landowners and farmers. In the competition for the custom of German, Austrian, Belgian and French meat consumers, Australasia will, doubtless, occupy; the front rank as soon as these protectionist restrictions are removed; and the best way to secure the removal of such restrictions is to show consumers, in a practical way, the merits and cheapness of Australasian meats. Having once found that imported meat excels the domestic product, or equals it in quality at a much lower cost, the demand for such food must almost inevitably force the hands of the protectionists, and compel the less restricted importation of foreign meat.

THAWING. Regarding Mr Nelson's system of defrosting beef and mutton Messrs Weddel think that until the process has been tried on a much larger scale than hitherto it is impossible to gauge its true mercantile value. The results so far have been distinctly encouraging, and, though the enchanced prices obtained for thawed meat may not be maintained yet it seems probable that a premium sufficient to leave a margin beyond the cost of the operation will continue to be paid. In the districts where the low cost of frozen meat is its main passport to popularity, the additional price charged for thawed meat may check retail sales, but, on the other hand, the altered condition of the meat will allow of its use in many channels now closed through prejudice or official regulations. Messrs Weddel draw attention to the fact that only really prime meat is fit For treatment by the thawing process. Broken skin or bruised flesh renders a carcase quite unfit for treatment, as the blood coming from such abrasions when temperatures are raised stains the adjoining surface of the meat and depreciates its selling value.

THE GENERAL OUTLOOK. .From a colonial point of view the statistical position of the Homo flocks and herds has improved during the past two years. The United Kingdom confcaius over 420,0Ch> less cattle and nearly a million and three-quarters fewer sheep than in 1892, but a comparison of the official prices current in the leading markets throughout the country from 1873 to the present time reveals no close connection between the prices and the numbers of cattle and sheep enumerated from year to year, and it must not be taken that, because numbers are receding, prices will in consequence advance. Continental exportation to this country is, however, rapirlly becoming a thing of the past, and the prospect of supplies in Europe generally are not likely to directly affect the British', markets. I

The American sheep trade with England has not been a success, and will probably not grow, especially as in the United States the quantity of sheep in 1894 was over two millions leas than in 1892. The receipts of frozen meat now amount to more than 8 per cent, of the total consumption of beef and mutton

in the United Kingdom. Of mutton New Zealand supplies 11 per cent, the River Plate 7 per cent, nearly, and. Australia 5 per cent., so that nearlyone fourth of England's mutton supplyarrives in a frozen state. The proportion of beef is very different. The quantity now received from Australia (L 5,000 tons), though representing 15 per cent, of the total import, is less than 2 per cent, of the total consumption of beef. This; steady expansion in the trade has, however, been accompanied by a not less steady decline in values, the averages of top prices for prime New Zealand mutton at Smith field having been as follow : 1883, 6|d per lb ; 1884, sfd ; 1885, ! s|d ; 1886, 5d ; 1887, 4±d ; 1888, 4£d ; 1889, 4f d ; 1890,4§d; 1891, 4fd ; 1892, 4|d; 1893, 4£d; and 1894, 4 l-16th d per lb.

While the numbers of cattle and sheep in this country ara now at a fair average level of recent years, prices cannot be said to be above the average, and the situation in this country maybe described as a reasonably safe one upon which to build fresh hopes for the near future. The progressive scale shown in the foregoing table, might dispose some people to think that the rate of production of frozen meats has been more rapid than the demand warranted ; but there can be no doubt that the decline in prices has proved a corrective by extending the sale, while the growing '-, tendency amongst the masses to eat more fresh meat, if the cost is hot prohibitive, may be relied 'upon to furnish an expanding market for the increasing exports of the Australasian Colonies. At the present iuncture it cannot be said that the general trade of the country is in a very healthy state, as although signs of a revival are not wanting in some branches, the statistics of many of the Labour Unions show that a considerable proportion of their members are tempbrarily out of work. Fortunately there appears to be no indications of any great strikes or other labour troubles either in this country or on the Continent, and as the mere absence of disturbing elements makes for prosperity, a certain measure of hopefulness may; be reasonably indulged in as regards the probabilities of a steady demand in the near future. Briefly the situation appears to indicate that supplies will, probably continue to prove fully equal to satisfy the slowly growing demand in this country, while the Continental trade is still too uncertain to calculate upon. If any very large increase in exports from Australasia takes place in 1895 it will be ;difficult to maintain net returns at even the moderate level of 1894.