THE PROSPECTS OF TRADE WITH SOUTH AFRICA.

New Zealand Mail, 17 September 1902, Page 46

THE PROSPECTS OF TRADE WITH SOUTH AFRICA.

Alll GOW’S INVESTIGATIONS

\\ iiilst Mx- J. G. Gow, the New Zealand trade representative, was in South Africa last year, he had an interesting interview with Sir Albert Hiine, Premier of Natal, who expressed the view that if regular shipments could be arranged. the prospects of trade from .sew Zealand to Natal would be very encouraging. The Premier sent the Minister for Agriculture (.the Hon. H. D. "Winter) and the late Secretary for Agriculture to Durban with Mr Gow to taik the matter over, and to inspect the samples he had brought from New Zealand. Air Winter expressed his appreciation of the excellent exhibit of woollen goods, and asked Mr Gow to convey to the New Zealand Government his admiration of the progressive spirit of which its acton in sending out this exhibit was an evidence. The Minister also asked for the names and addresses of well-known stud sheep-breeders and leading seedsmen in New Zealand, and for information as to the length of time occupied in the journey from New Zealand to Natal, the cost of freight on animals and produce, and the varieties of oats which are now generally cultivated. and their liability to rust. Air Gow. in reporting the result of this interview, states that Mr Winter seemed little in sympathy with the idea of importing from New Zealand such commodities: as meat. hams, bacon and other foodstuffs, but that it is clear that even Natal must for some time to come import largely of frozen meat, grain, flour and dairy produce for its own consumption. not to mention the great demand which must arise in the new Transvaal colony. This trade, he says, the Natal people are determined to command.

(OLD STORAGE IN SOETH AFRICA

Mr Gow expresses liis emphatic- opinion. as the result of investigations in South Africa, that it is not advisable that the New Zealand Government should provide cold stores in South Africa. He declares that competition would hi' too severe, and that if the Government built cold stores, it would involve a systematic trade campaign against a powerful combination at present controlling the meat supply of South Africa. To reach the buyer, it would be necessary to follow up the erection of cold stores by the establishment of wholesale depots, retail shops and agencies in all the important centre

in fact, wherever we wanted to trade. And when all this had been done ir would he necessary, in order to sret customers, to sell the New Zealand meat at a price which would leave no maricm for profit. Obviously, say-

ZVI l- ( ■ nw. it is not for a Government to embark on .so riskv a venture. «von wort' additional cold stores necessary. But these store.? are not necessary, as

tliose already provided can store as much meat as we could send them, provided that our prices coni Dared favourable with those of Australian and other comnet itor.-. Additional stores are to be erected in Durban. Port Elizabeth and Capetown by the companies conform'd. Air Gov considers that the Government should confine its efforts to promotion the wholesale export trade

in frozen meat. MARKETS IN SOUTH AFRICA

As the result of his investigations in South Africa. Mr Gov states unhesitatingly that there is an unlimited market there for produce of all kinds, particularly mutton. beef. butter, cheese, hams, bacon, eggs. oats, wheat. Hour, hay and maize. Amongst frozen products, butter is an article in large demand in bulk and in lib pats, also in lib tins. Air Gov gives instructions as co the methods to be employed in the packing of butter, cheese, poultry, hams and bacon, potatoes, and other in'oduce. He states that the demand for potatoes and onions is a large one. There is a great demand for timber, and with regular freight a big trade can be done. Cattle and sheep for breeding purposes .especially merinos, are generally inquired for, and will be in great demand for the re-stocking of the country. There appears to be an excellent opening in South Africa for frozen oysters. One firm alone in Durban lias had offers from Johannesburg for 400 cases of oysters. This would represent over fiftv thousand dozen oysters, which would give employment to at least five cutters catching all the year round in New Zealand —to say nothing of opening. freezing, and making of eases for export. Mr Gow suggests that the trade in smoked fish could be very largely increased, and that the Picton herring should get a trial. In reference to frozen meat, Mr Gow states that during the last six years a considerable trade in frozen meat and other produce has sprung up from Sydney and Melbourne to South African ports: but in the ca.se of Durban, and also of East London. Port Elizabeth and Capetown that trade has been subject to serious difficulties by reason of its being carried on by ships which simply call at South African ports on their wav to London. On the subject of distribution. he state? that there are sufficient facilities at all the ports for distributing our produce. THE STEAMSHIP SERVICE.

Mr Gow urges tlie necessity for an improved stoamsbin service between Now Zealand and South Africa, and says “I am forced to the conclusion that if wo are to compete successfully with

other exporters we must have increased shipping facilities in the shape of regular light-draught steamers which can cross the bars at Durban and East London, and which are an advantage even at Capetown, where there is no bar, but where small craft are more easily accommodated than large ones. These vessels should not draw more than 18ft Gin if ti.ey are to cross the East London bar, and not more than 20ft in the case of the Durban bar. It is desirable to cross the bar when possible, as a saving of about os a ton lighterage is thereby effected, while the advantage in the handling of goods at the wharf is too obvious to need explanation. The boats require to be specially built for the trade, and to have a speed of not less than 12 knots. They ought to have first, second and third-class accommodation for a limited number of passengers. I think accommodation for. say, twenty first, twenty second, and forty third would be ample. They should be fitted with large refrigerating-space at varying temperatures for the different articles, and butter ought to be carried in a separate refrigerator by itself. They should also have accommodation and fittings for the carrying of livestock.”

Air Gow, writing of his visit to Bristol and Cardiff, states that the great drawback in both places is that there is no direct shipment from New Zealand, and that owing to railage charges from London. New Zealand mutton, which is highly though of in Bristol and Cardiff, is handicapped right out of the market. At Bristol it is intended to spend two millions sterling on docks and appliances. so as to supply facilities to those countries willing to give them direct shipment. There is no doubt, says Air Gow. that the country that will first supply will be encouraged in every way, and that New Zealand, if it does not seize the opportunity, may be practically excluded. The impression Air Gow received dsiring his stay in the Aianchester district is that New Zealanders have there the finest market lying ready to their hands, and only requiring to be properly and thoroughly developed, and that in the canal and docks there isevery facility for handling a vast amount of traffic both cheaply and efficiently. He says that there is no doubt that in the Port of Alanchester we have the most convenient centre for supplying a vast population with the immense quantities of frozen mutton, cheese, butter, tinned provisions, fruit, etc., which they consume. For example, in the important provision market of Manchester more butter is sold than in any other English market. “I am of opinion.” he says, "that steps should be taken at once to make vigorous and sustained efforts to open a market in the Manchester district and the North of England generally. In this I am assured tTlat New Zealand could rely on receiving all possible assistance from the Ship Canal Company, the port authority of Alanchester. which is anxious to put every facility in the way of those trying to open connection between Alanchester and new sources of supply.”

ANNUAL REPORT OF THI DEPARTAIENT.

The annual report ol : the Department of Industries and Commerce was submitted to Parliament last Thursday*.

The department, Air Donne states, has been in constant communication with the Imperial authorities through the Agent-General, with a view of keeping the War Office advised as to the lines of produce that this colony is able to supply, and a very extensive business lias resulted, much to the benefit of the colony. At the suggestion of the Agent-General, inquiries were made throughout the colony in order to obtain. if possible, offers of preserved tinned meat for the supply of the British army in South Africa, with the result that the department was enabled to negotiate an order for IOO.OOCkb of tinned meat between Mr W. A. Thompson, of Woodlands, Southland, and the Imperial authorities. A very much larger quantity could have been placed, but only three offers were received in reply to the secretary’s inquiries, no offers being received from the larger meat-preserving works, who generally replied that their surplus output was under offer to the Australian and London merchants in anticipation of the War Office contracts. The department has been instrumental in inducing the Imperial authorities to place several orders for meadow hay in the colony, and, bad a larger supply of this article been available at the ports at which oats were being shipped, business on much more extensive lines could have been negotiated. AVitli regard to the grading of oats. Mr Donne states: —“The services of the department have been used very extensively by the Imperial authorities to inspect and pass all oats purchased by them in New Zealand for the supply of the troops in South Africa. The magnitude of the operations in this respect may he gauged by the fact that from the beginning of last year up till July Ist, the cargoes of thirty steamers, covering an aggregate quantity of 115907 tons of oats, have been inspected and graded. Tim remuneration received from the Imperial authorities for there services covers the outlay the department is put to. It is gratifying to be able to report that, notwithstanding the groat quantity of oats inspected and graded, not one single complaint lias

been received as to the quality or condition of the grain that has been passed. The same remarks apply to the inspection of hay and tinned meats purchased by the Imperial authorities in the colony, and inspected on their behalf by the department.” AIR GOW’S -MISSION. The report mentions the work of Air J. G. Gow m South Africa, and states that up till the end of February Air Gow was engaged with the distributers of New Zealand produce in London, and in visiting the principal merchants of Bristol and Cardiff, leaving London again on the 10th Alarch to visit Alanchester and other towns in England, proceeding thence to Scotland. On the 3rd April Air Gow was instructed to proceed to Calcutta and China, thence to Japan. The department proposes to print Air Gow’s full report as soon as it is available, and circulate it fully amongst the commercial community, Chambers of Commerce, farmers’ unions, and other kindred associations.

TRADE AVITH WESTERN AUSTRALIA.

In October last, at the cabled request of the Premier of Western Australia, Air F. T. Boys was instructed to proceed to Perth to give evidence before a Select Committee sitting there to consider the food-supplies of Western Australia. tln> particular mission of Air Boys being to bring under the notice of the committee the ability of this colony to supply frozen and canned meats, butter, cheese, potatoes oats, hams and bacon, and tinned fish. In reference to this matter. Air Donne says“ The evidence before the committee was mainly directed to the supplies of fresh meat, and it was generally conceded that under certain conditions a considerable trade in frozen meat could bp established between this colony and Western Australia. the first essential condition being direct transport from New Zealand to Fremantle: second, the rebate of the tariff at present existing. Once these conditions prevailed, the question of establishing a market in Western Australia could bo safely left in the hands of the merchants of New Zealand and of Western Australia. At present the principal item of export from New Zealand to Western Australia is oats, of which, during 1901. G4OO tons was shipped consigned to Western Australia for transhipment at Sydney and Melbourne. This does not include oats purchased in New Zealand by Alelbourne and Sydney merchants and ultimately forwarded to Western Australia, which would probably amount to one-third of the quantity consigned direct.” THE FROZEN AIEAT TRADE.

After a- reference to the report of Air F. T. Aloore on this subject. Air Donne continues: —"Considerable discussion on this trade is being carried on in the colony at present, and suggestions are being made that all the freezing works should be run on co-operative lines in the interests of farmers, and in some instances State control is strongly advocated. Whatever may be the merits of tne.se different schemes, there can be no doubt that the distribution and selling of frozen meat should he put on a better footing than it is at present. In my opinion, the number of ports of discharge should be materially increased and the number of consignees reduced. At the present time the New Zealand frozen meat industry is responsible for the existence in London of quite a number of meat merchants, brokers and salesmen, who compete against one another in the disposal of meat from this colony, with the .result that prices are often unnecessarily depressed, besides which the expense of salaries and commission directly and indirectly borne by the producer must be considerable. In my opinion steps should be taken to secure the discharge of frozen meat at Liverpool. Bristol. Alanchester and Glasgow, and also at South African ports. This would relieve the pressure in London, open up other extensive markets, and to some extent do away with the enormous number of London brokers and salesmen, who, by their competitive efforts, are prejudicing the values that should obtain. By making London-the one port of discharge it is no doubt a great advantage to the steamboat companies who freight the meat, vet freights on this product are no lower, relatively, from New Zealand to London than from those countries which have the opportunity of shipping their meat to other port s . I nless some combination is effected regarding the disposal of New Zealand meat, the Government should, in my opinion, for the benefit, of producers, consider the situation with a view to bringing about better conditions both as regards disposal and regulation of supplies. Any increase in the number of ports of delivery of frozen meat would carry the same advantages to our exports of butter, cheese, frozen rabbits, flax and other produce.” There seems to be. says Mr Donne, a desire on the part of the commercial community of the colony to take advantage of the existence of this department to obtain information referring to matters of trade and commerce both inside and outside of the colony, the number of inquiries being received from outside the eolonv on matters referring to the possibilities of trade and different colonial industries having been very numerous. Notwithstanding that fl 'e department is finite in its infancy, the work done during the past year has been very considerable, and the efforts of its small staff have been severely taxed.

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