BRITISH MEAT SUPPLIES

Otago Daily Times, Issue 17868, 25 February 1920, Page 10

BRITISH MEAT SUPPLIES

PRODUCTION' IX THE DOMINIONS, FUTURPJ PLANS. REPORT OF HOARD OF TRADE vimyavvEK. IMPORTANT RK< OMMK NDATIONYI.

Writing under date December ?A the London correspondent of tin- Mullwirno Age says:—There are some matters which aro of 'considerable interest to tlio Australian meat export trade in I lie report of the committee appointed hy the Hoard of Trado "to consider and report on the menus of securing sufficient meat supplies for the United Kingdom at reasonable, prices, with special regard to the development of meat production in the United Kinadom and in tho British overseas dominions, and to the protection of BrifWi markets and of producing countries within tho Empire from domination by foreign organisations." Before tho war tho yearly consumption of beef, veal, mutton, an<l lamb in the United Kingdom was about 1.811,000 tons, of which 60 per cent, was raised in the United Kingdom and 40 per oent. imported. During the war there was a considerable reduction in meat supplies, both home-grown and imported, and for two years a system of rationing consumers (which was not abolished until a few days ago) was enforced in Great Britain. Tine rationing system materially reduced consumption, and compelled the jiooplo to alter their diet, and find substitutes for meat. But the committee do not anticipate that the fact that the people have become accii'tomnd to oat lose meat than formerly will affect the nggrrgjito consumption in future years, an tho highpr wages which the working chs=es are receiving will probably result in their oat : ng more meat than they did before the war.

MEAT EXPORTING COUNTRIES. Concerning tho supplies of meat which are likely to bo available in foreign countries, the report states: " South America is ths grpat prpsent source of moat supply. In the Argentine Republic there are about 29.000,000 cattle (the number having remnincd almost stationary during the war), and between 50,000.000 and 60.000.0C0 sheep; about 45 per cent, of tho cattle are native. Uruguay has about 8.000.000 cattle and about 11.030,000 sheep. Chilian Patagonia has about 4,000.000 sheep. Brazil has an unknown number of cattle, usually estimated at about 30,003.000, but the groat, majority of them ore not suitable for the British market, though the meat like that of Uruguay, is acceptable in Continental markets. Venezuela has during the war exported frozen meat to Franco, and Columbia, though at rvrewrit undeveloped, offers the possibility of a trade of moderate dimensions. The American meat companies have also begun to develop Paraguay. Central America has a large number of wild and semi-wild cattle, but the possibilities of an exrjort trade avo very uncertain for a long time. China (Yangtso Valley and Mnnchurin) has cattle of fair quality, and has done, an export trade to France and Italy. Jfndngiasoar has also n freezing works, from, which moderate quantities have been exported to F r nnco. Tha effective meat-exporting capacity of those foreign countries which need to be tako.i into consideration at present is as fol'ows. including output from works now under construction: — Beef. itntt-on. Ton=. Tons.' Arßcntinc and Triiptifiy 600,000 70,000 Patneoni.t (Argentina and OhiU>) — 30,000 Brazil ..' 250 000 — YpTirziipln, 8.000 — Vnnipimy 5 000 — Madagascar 8,000 — 871,000 100,000 The report gives tho following totals as tho probable yearly surplus meat available for export from tho oversoa s dominions for the next few years: — Iteef. Mutton. Ton.- , . Torid. Canada 25,000 — Australia IiO.OCO 70,000 Xc-w Zealand 40,000 100,000 South Africa IW.COO — 210,000 2M,000 MEAT IMPORTING COUNTRIES. In summarising tho world's supply and demand the committee states: "On tho assumption that sufficient shipping were available the moat capacity of the supplying countries in the immediate future would be about 1.400,000 tons a year, of which about 330.000 tens would be mutton. Tho requirements of the. United Kingdom for imported meat may be taken at 750,000 tons a "year, those of France at ?.50,CC0 tons, those of Ttalv at 150.0C0 tons, tho?c of Belgium at 50.000 tons, end thcwr> of the United States at 150,000 tons—or 1.360,000 tons a year in all. This total exceeds the present carrying capacity of the world's insulated ships, even assuming a normal rate of loading and discharge, and, though in a couple of years' time there will apparently bo a surplus of shipping space for the supply of now demands, it cannot be realised to the full if the present rate of handling ships is continued The French, Belgian, and Italian requirement cannot bo met in full to-day except with the assistance, of British and American tonnage, and then no steamers will be left for the supply of other Continental countries. On tho other hand, it is not unreasonable, to expect that British shipowners will make a further effort to copo with the demands for insulated tonnage. "The consumption of chilled beof at the expense of frozen beef was progressing rapidly before the war. and unless and until chiller! beef can bo brought from the Antipodes Australasian frozen heof will be at a disadvantage in British markets compared with Argentine chilled beef. Beef from Brazil and Uruguay, and mutton from the Argentine and "Patagonia are best suited for Continental markets, and the more highly-priced Australian and New Zealand mutton and lamb will tend to exclude foreign mutton and lamb from the markets of the United Kingdom. Meat will, in fact, t"nd to bo distributed in the future as in tho past accordinjr to its o.uality and price and the taste of the consumer. Before the war about one-third of the beef and veal consumed in the United Kingdom came from foreign countries, and this proportion cm mainly l>? reduced by an increase of oilf home-grown supplies. On tho other hr-nd. only 12 per cent, of the mutton unci lamb cam"? from outside the Empire, the tendency h that this will diminish. GOVERNMENT CONTROL OF EMPIRE SUPPLIES. Reference is made in the report to a proposal to extend for a period of live years the Imperial Government s contracts with the Australian and New Zealand Government's made during the war to purchase all their exportable surplus meat, "so that producers might come safoly through a time when trading would be uncertain, and be encouraged to expand their production pending the restoration of normal conditions." The report continues: "Some of the witnesses who appeared before us even proposed that all importation ot meat should be conducted permanently under Government control, hitch plans co'uld only bo carried into effect with the co-operation of the dominion Governments, and Ko far not one of them has shown any desire to engage in such farreaching operations, although any terms which might, bo agreed would guarantee an assured market and a reasonable profit to the producers and tho freezing works. The New Zealand Government is the only one which has asked for anv extrusion, and that a limited one., of the original contracts. The Government, of QueenrJand is understood to bo willing to sell to the Imperial Government surplus cattle from the Government stations on favourable terms, but such a sale would, of course, represent only a very small part of the output of the St-ite." The Government of Victoria has cabled:— ■" Government here, having consulted all producing interests, consider the 'b-st method of increasing meat production will l« open market immediately on termination of present contract with Imperial Government, three months date termination of war, provided insulated space guaranteed equal what would be provided if contract extended for period of Imperial Government control shipping. Failing open market with full shipping facilities Government consider that any extended contract should provide prices in harmony with retail rate prevailing in United Kingdom, and with pricos being received in America and other sources of supply. Broadly speaking, Victoria could greatly increase- meat exports if prims enabled producers to pay eo;4 < 1 cultivating fodder crops." Tho Victc.ri:;;! Government is clearly apprehensive of diversion of ships, and only contemplates the desirability of renewing the contract for the New Zealand term of thrao months. The importing houses in London, many of whom possess freezing works in Australia and New Zealand, arc all opposed to tho continuance of Government purchase. The opinion was ulso expressed that tho purchase of dominion meat whiJo foreign companies v.'cre left free in their trading would bo hurtful to Imperial interests. In the absence of any ovidenco that tho maintenance of .these contracts would bo welcomed in tho dominions, w<> have not. thought it advisable to proceed further with the consideration of this plan. Tho report also rtV.s to a proposal of the Incorporated Society of Meat linportere, composed of firms deaiisg -with meat

irnpnrls from Australia and New Zealand. Then? importers are impressed with the. idoa that, in view of the groat demand for nio-at in other parts of the world, supplies inny Ik , diverted from tho United Kingdom on tho termination of the existing system of purchase hy tho liriti?h Government, from tho oversea dominions. They .suggest tliat contract.-, should bo entered into with the freezing works in the dominion wider which a minimum of 80 per eent. of tho Xew Zealand output- of iiuvit from these works. 75 per cent, of the Australian output, and 70 por (flit, of l!ie ('vuiadinn and Soulh African output, should l>o sent to tho United Kingdom in return for a premium of id per IU on the total quantity shipped by British firms from Kmpire sotireor. nnd consigned fo members of an association of Hritirh moat importers. But the committee did not take a favourable view of this proposal, though they recommend that it should be taken into consideration " when the question of tariffs. • ltountirs. and suKsid : es is lining considered in connection with tho general trade policy of Orent Britain.

AUSTRALIAN MUTTON AM) LAMB. . '" We are impressed," state the committee, "by tho way in which production in the dominions has developed without any artificial stimulus. The real prohJems iiro those, of improving quality, extirpating diso-a-fe and providing against the risk of drought, and these can only be dealt with locally, and not from the United Kingdom, As far as regards beef, tho future lies with the chilled variety, and the prospect of bringing it from Australia and Now /'calami continues to be remote, but the possibilities of development of trade from Canada and' South Africa were laid before us by witnesses. As far as Australia (except "Queensland) and New Zealand arc concerned, the future lies with the production of mutton and lamb, and the development in the recent past has been continuous^ and vigorous. The demand in tho United Kingdom is increasing, nnd the of developing now markets in the United States and on the Continent of Europe arc bright. The Imperial Government may usefully help by diplomatic action in securing the removal of unjustifiable restrictions on importations and in obtaining for the dominions a fair share of the European and American trade. "Meat from Australasia Is brought to this country in ships carrying not meat only, but also other produce, for which the host market has hitherto been the United Kingdom. The possibilities of economically diverting such steamers (including the obtaining of profitable return en woes) is limited, and the greater problem is more likely to be tho obtaining of ships for the development of Hie new markets for m&i-t. These considerations appear to make it certain that a large proportion of Australasian meat will always com.o to the United Kingdom; but in any case, if tho United Kingdom wishes to obtain its share of the world's meat supplies, it must be prepared to pay tile world's price." In their recommendations regarding the production of meat in the oversea dominions the committee state: "We regard tb.e control or supervision of moat production in the dominion as a matter for them' alono, but in order to ensure unity of action by the several Governments we advise that there should be frequent inter-communica-tion on this subject by conference or otherwise. x\s an example of action jn regard to which general consideration might bo desirable wo would refer to the recent New Zealand Act for the licensing of meat exporters. Meat production in the dominions may bo expected to continue to progress rapidly, and- the existence of a ready market in the. United Kingdom for the bulk of their exports is the best guarantee of such development. Some further aid can, however, be given by assisting them to secure now markets. (a) We recommend that diplomatic action be taken to obtain the removal of all unjustifiable restrictions on the importation of dominion meat into foreign countries, including the surtaxe d'entrepot on meat transhipped from tho United Kingdom. Further, if any action is to be taken for the feeding of tho countries ravaged by the war, wo consider that every effort should be made to secure a share of the trade for the dominions. (b) We also recommend that Government contracts for riio-at should be confined to British producers in the United Kingdom and in the dominions."

CHECKMATING THE MEAT TRUST. In regard to "checking practices in the mmit. trade, whether by trusts or otherwise, which arc inimical to the public interest," *he committee states:—"Various schemes have been put before us aiming at the exerciso of a certain amount of control and supervision of the meat trade, so as to provide a ready rnems of intervention to check practices detrimental to the public interest. \fter careful consideration, of those schemes we make the following recommendation,'}: (:i) Statutory Licenses. All persons who imvort or deal in cattle, sheep, beef, veal, mutton, or lamb in the ordinary couruo o£ their trndn nhouM bo required by statute to hold a license from the proper authority. Farmers dealing in Htock in the ordinary course of farming operations should be exempted from the necessity of obtaining a license, (b) Conditions of Licenses: An applicant for a license should be required to furnish such information relating in the ownership of his business and other matters as may be proscribed. Subject to the prescribed information bsing duly furnished, the license should be issued to the applicant as of course, except where it appears that a case for revocation of the license would immediately 'arise on its issue. "The conditions to he attached to licenses should bo fixed by the licensing , authority, and in the case of importers might include a limitation of the quantities of meat to be imported within required periods. l>s general, these conditions should require :—All licensees to furnish at all times such information concerning the. operations of their business as may bo required, and to give reasonable facilities for the examination of books and other documents relating to their business. All licensees who are importers to furnish in the required detail periodical returns as to their past and expected receipts of meat, (c) Meat Department: The Board of Trade or such other department as the Government may select should set up a meat department assisted by two consultative committees —(a) consisting of representatives of the British interests in the meat trade, including producers and consumers, and (b) consistinir of representatives of i'lo owners of British insulated ships. The duties of the department should comprise the issue, suspension and cancellation of licensee, subject to an appeal to a court of law; the consideration of alleged cases of unfair trading and other complaints; the supervision of works leased by the Government, and any other dtitfns that may from time to time be assigned to it. The meit department should be empowered to exempt certain classes of traders (in particular small butchers and hawkers) from the necessity of obtaining or holding a license, and should discriminate between different classes in the information to bo required and the conditions to be attached to lircnees."