FROZEN MEAT TRADE

New Zealand Times, Volume XLIX, Issue 11177, 5 April 1922, Page 7

FROZEN MEAT TRADE

AN INTERESTING REVIEW RECORD SHIPMENTS FROM NEW ( ZEALAND. BRITAIN TAKES .£20,937,998 WORTH (No. 1.) From the review of the frozen ineat trade published by Messrs W. Weddel and Co., Ltd. (the 34th. year of publication) we take the following: A year ago the view was expressed that "■the world-wide tendency of food prices to recede to lower levels was not likely to be resisted for long in the case of meat.” It was not: but the extent and the severity of the collapse tbat.took place in 1921 greatly 1 exceeded anticipations. The year was a disastrous one for most traders: and there is already a universal desire to forget its bitter experiences, evjm .'if its hard lessons cannot be ignored.

Trouble began early in the year —even before the withdrawal of the last vestiges of Government control, with its artifi. cially high basis of values, on March 29th, and difficulties multiplied as the year advanced. The collapse of the American and Continental markets threw unexpected and, to some extent, unsuitable supplies upon this market. Labour unrest in New Zealand interfered seriously with the movements of refrigerated shipping both at home and abroad, and the same factor in this country contributed largely to the creation of unemployment, which, later in the year, checked consumption. Storage difficulties followed upon interference with the normal sequence of sailings, and for months there was congestion at the principal British ports. When that was relieved late in the autumn, home supplies were at their maximum, and tlio market simply could not withstand 'the resulting. avalanche, under which prices collapsed in. the closing months of the year. The extent of the debacle is shown by contrasting January values with those ruling in December, which reveal an allround shrinkage of just 50 per cent., some descriptions suffering even more than that. Having regard to the average reduction of 30 per cent, established in wholesale prices of other commodities during 1921, this breakdown in meat prices was unduly severe: but some indications of recovery began to show themselves before the year closed. PRICES AND CONSUMERS.

The 1921 index figure of wholesale prices for all kinds of imported beef, mutton and lamb is 180 as compared with 240 in 1920, 272 in 1919, and 295 in 1918. These figures are arrived at on the basis which would have produced 100 as the corresponding standard in 1913. Important thougn the average yearly reductions thus revealed may be, the prices actually ruling at the end of 1921 disclose a still more noteworthy approach to pre-tiar parity. That index figure was 123, or only 23 per cent, above the 1913 standard, which wa6 by no means a low one.

It cannot bo suggested that retail prices have shrunk ’to anything like the same marked extent; and though it may be exceedingly, difficult to support that view by definite proof, there can be little doubt that consumers generally have not as yet enjoyed the full benefit of the very material reductions which have taken place in wholesale prices. Naturally this slump produced oon►ternatfion amongst produtoenp in all parts of the world, and 'remedies were formulated aooordinig to the circumstances of the various producing countries. British, Australian, New Zealand and Argentine farmers had their several ideas as to what would he most effective. Guaranteed prices, Eknpire preference, compulsory ot voluntary pboltng, nationalisation of the industry, were demanded in turn —but as yet without definite results. Most Governments are fighting shy of such calls, realising that their main function ie to govern and not to trade. NEW ZEALAND PROMINENT.

The number of cattle and sheep in the United Kingdom increased toy 122,600 and 866,400 head respectively during the twelve months ending June 4th last. Although these figures represent additions; erf only 1 per cent, and 3.5 per cent, respectively, they may be accepted aq very welcome signs of a recovery in the position'of domestic supplies. New Zealand alone furnished us with fully as many carcases of mutton and lamb as were supplied by the flocks of the Old Country. Importations in 1921 exceeded all previous records Excluding live stock and fresh-killed meat, which, amounted to 26,330 tons, no less than 917,414 tons ol beef, mutton and lamb were importer into the United Kingdom as compared with 810,415 tons in 1920. 528,354 tons in 1919. and 720.257 tons in 1913. With a home production estimated at 1.056,400 tdns. 47 per cent, of the total consumption was imported last year. In London district, 80 to 85 per cent, of the meat marketed came from overseas. In other words, only one Londoner out of seven, can now reckon upon having British-fed meat to eat. 1 . Any bias against imported meat which may have existed before the war has been removed under the stress of these past seven years of world-wide unrest; and in view of the increased and still growing dependence of our people upon foreign sources of supiply for their daily food, they cannot now afford to indulge any lingering prejudices on the subject, eveu if they so desired. 'Ten years ago little more than one-third of our meat supply was imported; to-day the proportion is practically one-half. CONTINENTAL REQUIREMENTS The world's output of mutton, lamb, and beef (frozen and chilled.) was somewhat curtailed in 1921 as a direct result of the- falling-off in Continental requirements. Shipment* from ail sources aggregated 970,300 tons as compared with 1,076,700 tons in 1920 and 1,111,500 tons in 1919. In 1913, only 764,900 tons were shipped from all sources. The Continental trade was a disappointment as compared with the reoords for 1919 and 1920. The importations ot frozen meat (including pork) into France, Belgium, Holland, Germany, and Italy are estimated at 186,000 tons against 800,000 tons in 1920. Several factors combined to bring about this reduction in imports, but more especially the state 6f chaos in international rates of exchange. Other contributory causes were the’lack of money in most European countries, the improvement in the status of local flocks and herdsi, definite efforts put forth, on the part otf some., countries to oheck imports of meat, and finally the relatively high prices demandocL by exporters during the greater part of the past year. Evidently, the Contment of Europe is not in a position to absoib nearly so muoh overseas meat as was hoped for after peace was established. TABLE OF IMPORTS AND VALUES. According to the Board of Trade returns, tho total weight of the various descriptions of frozen and chilled meat imported into the United Kingdom during the past threo yearn contrasted with 1913, and the values of tho 1921 arrivals,

"Decrease. The net increase in importations (106,999 tons) is mostly accounted for by the increase in receipts of chilled beef (99,674 tons).

SMITHFIELD MARKET

MOVEMENTS OF PRICES. NEW ZEALAND MUTTON AND LAMB. The "Table of Fluctuations in Prices at Smithfieldissued with Weddel’3 review records the weekly top prices of the various descriptions of frozen and chilled meat imported into the United Kingdom. The qnotations shown are for beet qualities of the descriptions named. Throughout the year, secondary and inferior qualities were sold with difficulty at ixioes considerably under those recorded :>elow. . , , Broadly speaking, beef prices slumped in the early part of the year chiefly because of the accumulation of old stocks of Australasian of indifferent quality, and the unexpectedly heavy arrivals from the Plate, brought about through the failure of the Continental demand. During the summer months some steadiness prevailed, but in the autumn the weakness was renewed. Values of best quality mutton and lamb, owing to the protracted discharge of steamers arriving from New Zealand, were maintained at a high level until the autumn, when the accumulating supplies necessitated a drastic lowering of values in order to foster the demand. The cheaper retail prices established in the latter part of _ the year for most classes of meat certainly tended to stimulate the consumption; and the year olosed on a more hopeful note, with holdings of mutton and lamb much reduced, and beef stocks beginning to move off at a more satisfactory rate. ' Top quotations in 1921, compared with 1920 and 1913 prices, averaged out (over the twelve months) as follow Australia.

The prioes ruling at the close of lffil were much below the average recorded above, being actually 60 per cent, lower than, in January last. New Zealand mutton and lamb suffered relatively less severely than other descriptions.

were as follow, viz. : From 1913. Tons. 150,666 1919. Tone. 69,044 New Zealand 122,234 409,211 29,717 74 121,209 242,128 Uruguay 21.323 42,809 8,355 31,842 . 720,257 528,354 From Australia New Zealand Argentine 1920. Tons. 154,743 197,305 364,808 41,774 1921. Tons. 104.732 263,665 444,539 67,093 11,233 8.903 40,552 28,482 Total 810,415 917,414

Increase or Total decrease in. Import 1921 compared vain© with 1920. 1921. Tons. JB Australia 7,193,070 Now Zealand 20^937,998 Argentine 479,731 33,277,407 XTrxtgmy +25,319 4,921,938 United States 800,050 Other countries ... *12,070 3,570,175 Total 106,999 69,708,644

ISIS 1920 1921 lb lb lb d d d ej 71 Lamb .... 5| 12* ni Frozen Beef (fores) .... .... 3i 3k li Frozen Beef (hinds) .... .... 4 lij 6J Chilled Beef (hinds) .... —* — — — NEW ZEALAND. 1913 1920 1921 lb lb lb d d d »i 81 12* u! 12 Frozen Beef Frozen Beef 3| (hinds) .... .... 4 el Chilled Beef (hinds) .... — ARGENTINE. 1913 1920 1921 lb lb lb d d d 9* 12i 8i 12 io| Frozen Beef Frozen Beef Chilled Beef 54 4 9 (hinds) .... 5 12 10