SOUTH AFRICAN MARKETS

New Zealand Mail, 22 January 1902, Page 35

SOUTH AFRICAN MARKETS

THE TIME RIPE FOR ESTABLISHING A TRADE. IMMEDIATE ACTION IMPERATIVE. The reason of the present activity of the dairy produce community iu regard to the South African trade lias been explained to a “New Zealand Times” representative by two leading dairying authorities. Mr J. B. Mac Ewan, the well-known dairy produce exporter of this city, has taken a deep interest in the South African trade for the past two years. He has during this time sent produce to that market, and has been in constant communication with Cape merchants and traders; besides this, he has a personal acquaintance with the Australian end of the profitable business now being done" between the Commonwealth and the African markets. Mr Mac Ewan is, therefore, well qualified to express an opinion on the present position of the trade between this colony and South Africa. In all movements in connection with the subject Mr Mac Ewan has been foremost.

The present agitation.in regard to immediate shipments to South Africa, remarked Mr MacEwatj, is the shortage of butter supplies from Australia, which gives us an excellent opportunity to secure contracts and open up business generally in South Africa. To do this we must act at once, and as a direct service cannot be established immediately, something must be done to arrange for shipments by way of Australia. The present direct service, Mr MacEwan pointed out, is a failure, for no dependence can be placed on it. The wihdrawal of the Mamari settled that. The present position is that the companies require to know, before putting on a steamer, if there is enough produce offering. The 'result of this is tnat shippers are unable to enter mto contracts, which have even been cancelled by South African buyers, said Mr MacEwan, through not being able to get deliveries, or not being able to depend upon them. This has been Mr MacEwan’s own experience. It has taken place, he said, after the expense of arranging contracts has been incurred. These have consequently had to be cancelled, and supplies secured from other countries which could give a certainty of delivery.

Referring to shipments via Australia, Mr Mac Ewan points out that this route possesses certain advantages over the direct route—greater regularity and frequency. The transhipping at Sydney and the additional cost are, however, counteracting drawbacks. Then, in the' event of very large shipments coming forward, neither of the companies trading between this colony and the Commonwealth have sufficient cold storage space. In making the arrangements for the direct service, Mr MacEwan urges that it should be regular and frequent, as in view of the services from Australia possessing these important considerations,, it is imperative that New Zealand must meet the shippers from the Commonwealth on even term.*

y Mr C. R. Beattie, secretary of the National Dairy Association, considered it a pitiable state of tilings that with each mail bringing sheaves of letters from merchants in South Africa asking for consignments of butter, no business could be done. In the absence of any direct communication, said Mr Beattie, it is quite impossible to quote butler against Australia, or even to juo;e si all. Each month that goes 0y allows the produce of other countries to obtain a stronger hold of the market, to the detriment of our chances of building up a trade.

Asked as to his opinion of the most suitable direct service, Mr Beattie said that, in his opinion, the best route would be via Fremantle to the Cape, and returning by way of Mauritius and Calcutta. This would overcome the great drawback to a South African trade—return cargoes. The Union Company, Mr Beattie believes, would give tho best service, as they have boats of a size and draught which would enable them to enter any South African port and at the same time carry a large cargo. They have also a connection with Calcutta at the present time, and the proposed route would at once prove profitable. Of course, said Mr Beattie, if the Union Company entered the trade they would require to fit their steamers with refrigerating machinery. Replying to the question of cold stores in South Africa, Mr Beattie said that his opinion as to the necessity of Government cool stores being erected, there had been somewhat modified of late, especially by reason of the report of Mr Gow, tho Government Trade Commissioner in South Africa. Mr Beattie believes, however, that it would be to the. advantage of the trade if the Government scheme for the erection of the stores could be given effect to. Au excellent idea, he thought, would be to have freezing hulks at Capetown ni.d other ports, as these would obviate any delays in discharging goods alongside wharves, which is at present a serious drawback to South African business. Tho prospect offered in South Africa for pig products is second only in. importance to the outlook for dairy products. An opinion was consequently sought from Mr J. D. Anderson, managing director of the North Island Jlae oil Company, and North Island representative of the Canterbury Meat Company,

the foremost authority in the colony on the subject. - The North Island company, said Mr Anderson, has been shipping to South Africa with the most gratifying results, the goods are shipped in a aeini-cured condition, and are finished in the works in South Africa, which the Christchurch Meat Company controls, in conjunction with Messrs Vecht and Stokvis. The drawbacks to shipping in a finished condition are twofold —the bacon is apt to go off in quality, and it takes up much more room in a vessel’s hold than v hen shipped m a semi-cured state, which greatly adds to the cost. “ Then your shipments to South Africa have been satisfactory?” Mr Anderasked. “Yes,” he replied, iiie North Island Bacon Company has always received most satisfactory results from its shipments to Great Britain, South Africa and Australia; hut then,’* Mr Anderson remarked, “ the goods have always been carefully graded ?md nothing but the finest quality has been shipped.”

“ What is your present position in regard to the trade?”

Though we have numerous inquiries from South African merchants, in Durban, Johannesburg and Capetown, we cannot do anything in the absence of a cur get service. Only the other day,” said Mr Anderson, “the North Island, Company received an order for 10.000 hams, but we could not look at it.” “ Must the route be a direct one for your business, Mr Anderson?” “Yes. The service must he direct, as the goods cannot be carried as ordinary cargo, and the transhipment at Sydney would be prejudicial to their condition.”

I The memorandum addressed by the dairy producers of the city to the I nion Steam Ship Company in reference to a reduced freight to Australia, in order to give dairy produce shippers an opportunity to cater to the South African trade pending the establishment of the direct service, puts the position thus:— First—With 3d duty on dairy produce, these lines are practically shut out of the Commonwealth markets, for local . consumption. There may be one exception, and we expect that Western Australia will continue to import small I quantities. The above position forces us to look for new markets and outlets for our produce. Second—We anticipate a good demand for the next four or . six months from South Africa, hut before contracts can be entered into we must be in a position to state and arrange for definite shipments. The socalled direct service is unreliable, and cannot bo depended upon. The Gov- ; eminent plans for subsidising a direct I service, we expect, will take at least j from three to four months to mature. Third—To ship to South African ports via Sydney or Melbourne, and meet the competition of Sydney and Melbourne merchants, .we consider it absolutely necessary that the through rate from New Zealand ports to South African ports, : including all charges, must not exceed Id per lb on net weights, when shipped all the way in frozen chambers, and £d if shipped as general cargo to Sydney or Melbourne and cold chambers to destination. Fourth—lf your company can grant these rates, we estimate that from 10,000 to 20,000 boxes will be shipped during the months of January, February, March, April.