THE MEAT INDUSTRY

New Zealand Times, Volume LI, Issue 12023, 29 December 1924, Page 12

THE MEAT INDUSTRY

WHAT MR DAVID JONES SAW ABROAD POSITION IN ENGLAND. CONTINENT AND U.B.A. HOW INDUSTRY GAN DE DEVELOPED IMPORTANT RECOMMENDATIONS “During my visit abroad I have had the privilege of viewing on the spot the arrival, handling, storage, and sale of New Zealand meat in many different centres,” writes Mr David Jones, chairman of the New..'Zealand Meat -Producers’ Board, in a special report on his’ recent visit to England, the Continent of Europe, and the United States of America. “I have always been at a loss to understand the conflicting statements made by New Zealand producers after visiting Britain, and reporting back to New Zealand their oninion of our meat, the treatment it received, and the general appearance.” , After a visit to Smithfield, said Mrjones, he saw—and understood. Mr Jones also went abroad —on the Continent—and saw the conditions there. He expresses some - interesting Opinions as to the markets available for the sale of New Zealand meat, and speaks of the important development the meat trade due to the phenomenal increase in Continental consumption. Taking Denmark as an example, Mr Jones thinks the pig industry 'ccsdd be developed in New Zealand.

ARTICLE H. DENMARK’S BIG INDUSTRY. We may take Denmark as a basis oi .omparison because they are our greatest competitors in dairy products, and $n many respects similarly situated to turselvee. The area of Denmark is 16,601 square miles. Ninety-five per cent, of the holdings, in Denmark are under '3O acres. Twenty-five acres is looked upon as quite a good farm, and I was surprised to see the large proportion of these holdings given up in grain and roots. Statistics prove that although there has been the great expansion in dairy _ , products this has not been at the expense of corn crops. The area under these in 1871 being 2,687,000 acres; 1901, .2,867,000 acres, and 1921,: 2,747,000 acres. The area in roots; however, has expanded from 13,876 acres in' 1371 to 833,000 acres in 1921. The Danish farmer, as indicated. by the above figures, grows his pig feed as far as possible on the farm, uses, his skim milk to the best advantage with grain and roots, and has developed a pig industry that exported last year over three million pigs valued 'at sterling. Their dairy exports were valued, at £15.084,605. Thepv pig slaughtering! . are | nearly all, co-operative, and operation there' is very binding. One slaguhterie I visited had 5000 sap-! pliers who enter into a guarantee for a numSbr of years to supply to the slaughterie every pig they fatten (exclusive of their own household pepcu}.' The Weekly killings were over 2QQO ; head, the plant was fitted with many labour-saving devices, including an i automatic scraper. The killing is dope on the chain system, and the butchers do anymther work about the factory when not slaughtering. Most of the bacon from this factory was sent direct to Britain and retailed every week. 1 Another factory I saw had 10,000 sap- j ? tiers and killed 4000 pigs a week. 1 never saw a black pig in Denmark. ( The slauehteries as well as the farmers) ‘ dislike them. The large middle white I is considered to mature quicker and give the long bacon side that Britain em&pds. Denmark has many advantages over us, especially ■ her. closeness to the market, but our climate is much. more superior and our foodstuffs are not dearer. In the freight contract just concluded we have obtained a freight of Ad per lb for pork and Id per lb for bacon, which will aesist the industry- ■ ; SHOULD BE ENCOURAGED. The freezing companies should give v every encouragement to develop this trade. If .we could do one-half - the tsade that Denmark is doing it would largely solve the freezing works problem by , adding to their annual turnover. Strict grading and'quality are essential, and Jhe New Zealand pork already sent Heme has created a very favourable impression. One fact that has an' important bearing on our future prospects in mest and dairy produce is that practically all our com., petitore, with the exception of Arisen' , tine and Australia, have to feed large lv by corn and cake and other artificial feeds. The increasing wages have lifted the prices of these foods, and it would appear that they must permanently much higher in price. This factor has materially increased the cost of production, particularly with pork and dairy produce. The wonderful pastures of New Zealand, combined with our easy wintei s ■ end favoured climate, can only be suffi- ' ciently appreciated when we actually , see the handicaps under which many of our competitors labour. IN THE UNITED STATES. , America as a prospective purchaser fin New Zealand frozen meat has often been discussed, and the rapid increase in their population, combined with their comparatively small quantity of sheep, has led many New Zealand visitors to soy that there is a big market ready to be exploited in the States. I spent nearly two weeks at Boston, New York, and Chicago investigating the, position,, and * was freely supplied with any information by the packing establishments visited, and also availed myself of the opportunity to see their slaughtering methods and saleyards. In 1921 about 250,000 carcases of lamb were shipped to Boston and New ibrs. At this period local supplies were short, and lamb was selling at Is 4d to Is 6d jper \lb wholesale. Lamb frozen in New Zealand was then worth only 6Jd per lb, and the exchange rate in favour of America. The first shipment brought about the same prices as our lamb on Smithfield to-day, andvmet a readv sale. This purchase wae very profitjMe, and heavy purchases were made ?5r future delivery, and all kinds of speculators rushed into the market. When these supplies came to hand local prices had receded owing to more plentiful supplies, and heavy losses were made by purchasers of imported meat, end much of it was shipped on to London.

The United States was also visited, and here again Mr Jones saw much of interest to New Zealand growers.

I These are the only shipments of any consequence that we have sent tQ America, and in discussing the prospects to- , day we have to fconsider the increased price tihait ia obtainable on the British market compared to 1920-21. The price in America for lamb bad been ruling round about, Is . per lb wholesale for some time, so that the price of New Zealand lamb on Smithfield is, roughly, the same as fresh-, Untied lamb in America. We have, I then, to accept a lower price for frosenj than home-killed, and pay fie duty in i addition. Exchange is also a consideration at the moment. - ■ Small quantities of lamb were I brought in this year from ArgenI tine, but a large portion of it remained jin cold storage and' unsold. Meat is ! stamped by the Government when put into' cold storage, and cannot remain i in. store for more than one year—some j States only four months. Meat once offered out of cold stords for sale cannot be put. back again if unsold. SHEEP-INDUSTRY IN tf.S.A. The sheep industry in the States is in a sound position and fanners consider it is more profitable than cattle and pigs. Old gummy ewes : coming • into the market were being freely pur- ] chased for further breeding, and the general opinion was that more ewe jlamjbs were being retained for breeding ’■ than previously. 1 The high duty on wool going into ■America tosteriqlly assists the ehdep. (farmer. Average were worth f4s eseh, and the farmer was receiving •Td per lb live weight for his lambs. , and slightly higher prices for the beat quality.- This would mean ardund about Is Id dead weight. v - There is- very little mutton slaughter' ed; carrying dry sheep over Hie" winter is too expensive, and they aim at fat. ' ! temng everything as lambs. I The lambs I saw were of fair average quality, and mostly Hampshire, Oxford, j and Shropshire crosses. Store lambs .are Isold in large quantities to breeders who i have fed them in the winter and supply the marked. It is considered at least as profitable to fatten/ lambs at the above prices as pigs. 1 Fat and store lambs, and a large peri oentage of. the breeding ewes, are noli! by live weight; scales for tins purpose "s^Uy-weigh 250 at one time." - The American is not a big .consumer ““bton and lamb. A big percentage of them came from the Continent of evidently brought with them the Continent’s strong preference for pork, beef, and veal; and these T als ° «>»P»r,ativ e ly cheap, ihe meat per capita eaten is 1651 b, and fa?™* a *° Pe rk . 701 b beef, and mutton sad lamb; and'lamb is the dearest of all, which does not encourage consumption. Messrs Armour and Co. expressed Idle opinion in their last annual statement, that America would have to soon consider outside supplies for the' growing meat market of America This view is not supported by other authorities I met. • The production of pork and bacon no limit if the price is satisfactory. MEAT—AND POLITICS. ■

.J n , reviews of the American meat situation the political aspect has been overlooked, and this is important. In theory they have one man. 'one vote, but in practice it certainly does not work out so. The United States Senate is not directly and proportionately representative. The State of Nevada, with a population of 77,407 in 1920, has the same number of Senators as th* State of New York with 10,385,227, and this* system gives the sparselypopulated and rural West thq swaying power in American politics. They have demanded and obtained heavy protective tariffs on wool, grain and meat.

Tariffs are adjusted in the States without Congress. The Tariff Committee . can be asked by the President to report on the cost of production of any article in *another country, as compared to America. If it costs more, the President can immediately adjust the duty in favour’ of his own country. This .was done recently With wheat. Part of the committee reported that the cost of the production of wheat in the States uas 2/11 per bushel more than in Canada. The other half piit the cost at 1/9 per bushel, and the tariff was increased to the latter amount. It is admitted that the cost of production in that year was only because Canada hqd a good crop and the States a poor one. but the duty remains. The republican (protectionist) party have just returned to .power, and the farmer can rely on obtaining all the protection he required to safeguard his home market against foreign supplies. TO SUM UP. My summing up of the position is /II that the prospective trade with America is not sufficient to justify the board at present in spending money with n view to its development. (2) That the prices of American meat should oe carefully recorded with a

view to taking prompt advantage of any temporary shortage. (3) That if such opportunity pacurs the board should consider exercising its powers with a view to restricting the quantities shipped to obviate disorganising the market by a multitude of shippers, as in 1921, and arousing the hostility of the American ers.

One matter of interest I found in British sheep stocks is that their etat-' istics are compiled from returns furnished bv farmers on July 4th in each year. The .result is that the whole of their lambs are included in the sheep Statistics. Our returns are furnished on April Ist—near the end of ■> our filling season. , , This reduces the number of sheep in Britain when judged by the Dominion method of collecting statistics by several million head. The display , of lambs made by the board l&st year at the different departmental stores in London, and on Smithfield, has been of great value as an advertisement and has prompted the board to arango for further dis- j plays next year. Arrangements have been made for a special display of the export lambs from the recent Royal Shew, and- also special lambs from several A. and P.' societies. Besides these lambs, a consignment of speci-ally-picked lambs from the different freezing works will also be sent along..