THE FROZEN MEAT TRADE.

Otago Daily Times, Issue 12472, 1 October 1902, Page 3

THE FROZEN MEAT TRADE.

THE PARLIAMENTARY COMMITTEE'S REPORT. (Per United Press Association.) WELLINGTON, September .30. In the House this afternoon Mr Buddo brought down the report of the Select Committee which had been set up to consider the questions relative to the frozen meat trade of the colony. It is practically an interim report. It suggests that as the magnitude of interests involved are so great the Government should be requested to set up a Royal Commission to go fully into the matter. The committee regards the complaints made, especially by breeders in Wellington and Hawke's Bay districts, as to the smaller prices obtained by .them as compared with those obtainable in the South Island as fully proved. It was abundantly shown that as thing 3 stand at present the bulk of the sheep produced in many North Island districts are not of equal value with those produced in the South. This may be accounted for, first, by tho breed. But still the committee is of opinion that the prices paid in the provinces of Wellington and Hawke's Bay are not of equal value to the producer to those obtainable by sellers in the South Island. The reason for this is that there is not the same competition in tho North in regard to the purchase of fat sheep. The market system has been considerably developed in the South, and the result is an average standard of prices not obtainable in the North Island. One of the great disadvantages that many North Island breeders suffer under is that buyers for companies operating in their districts have a uniform price. This is a matter for very great regret, as it is likely to considerably retard the improvement of the breed. North Island sheep also suffer in comparison, because the methods that are employed in the South Island of providing artificial feed in the winter do not obtain generally in the North Island. In the Wellington district the principal buyers of sheep for export to the Home market are the Wellington Meat* ■ Export Company and the Gear Company, .and in Hawke's Bay Nelson Bros, and the North British and Hawke's Bay Freezing Company. Whether it be by coincidence or accident, the committee has been unable to determine, but it has been conclusively proved that buyers for these companies in their respective districts invariably work upon tho same basis and offer the same prices. The result is that the. farmer is either compelled to sell to them at the price offered or make some other arrangement. Apparently the method of the buyers of the companies is usually to first purchase the heaviest sheep offering, leaving the smaller weights for subsequent dealing. An explanation of this is found in the fact that in tho North Island a system obtained of exporting legs and pieces. Cases have been cited to the committee in which sheep have been forwarded to the Addingfcon market and have there realised higher prices, after paying the cost of transit ahd all other charges, amounting to about 3s 6d, than were offered on the farm by the buyers of the, meat exporting companies. Unless a method can be devised of concentrating fat stock for gale at various centres in the North Island, thus attracting a larger number of buyers, there is not much chance of improvement in prices. The remedy appears to the committee to lie in setting up at suitable centres in the North Island of fat stock markets, and to this end the Minister ofc Railways might consider how it is possible to revise the railage rates on fat stock for export. The present supply of fat sheep unduly taxes the capacity of the North Island freezing works, and it appears clear that unless increased accommodation is provided a difficulty will be experienced in handling the sheep fit for export. A direct solution of the difficulty would be combination amongst the farmers themselves, sucli as a Co-opera-tive Association, of which, unfortunately, there appears little prospect. Considerable improvement would be effected if the system adopted by the Canterbury Frozen "Meat Company were adopted in'the North Island —namely, of making advances to sheepfarmers and dealers against stock passed through the hands of the company for freezing, and frequently, though not necessarily, for sale through them as intermediaries. The chief evil in connection with the sale of New Zealand meat in London and other United Kingdom markets, says the report, appears to be that it is within the power of individual owners, salesmen, or agents to weaken and in frequent cases to cause a decide slump in the market through the placing of quantities of mutton or lamb upon it at inopportune times and at less than current rates. The trade will never be on a sound footing until a Central Board is set up in -London with power to fix prices from day to day, and thus to regulate and control the sales. The number of places in the United Kingdom at which New Zealand meat is sold represents only a very small proportion of what should be possible. The question of Government assistance to the industry should be considered by a Royal Commission.