MEAT CONGESTION

Otago Daily Times, Issue 17935, 14 May 1920, Page 6

MEAT CONGESTION

QUESTION Of DISTRIBUTION. MUDDLING IN BRITAIN. _ (Fboii Oob Own Coebespondbnt.) AUCKItAND, May U. Information that the Imperial Government hae decided to reduce the prico of imported mutton in Britain has been deouaeed in Auckland by geople interested in the frozen meat trade The opinion woa expressed Uiat auuh action, should hare been taken by the Food Controller iminodiAtely upon the cessation of hostility. It was ooutonded that had meat been offered 18 months ago at _ the priooe now quoted, the ptoaant congestion in the stores in Greet Brrtain and in oven-seas dominions ■vould not have occurred. Such aotion would have meant a substantial loss to the Imperial Government, but by deferring it, the position hare been rendered infinitely worse. Not only has the loss still to be faced, but , the congestion overywhoro is threatening to cause a setback to one oi tlio staple industries of tho dominion. One of tfho effects of tho high prices charged for meat in Britain was the marked decrease in tho consumption of moat, and it is assumed that oven at the reduced rates it will be a considerable time before Siie consumption will be materially increased. This, in view of the fact that the storage capacity of the dominion is taxed to the utmost, is regarded as a serious utatter by those who understand the position. It was ; stated by oiio authority that the prices : probably would have to.be still further reduced to facilitate the clearance of the British stores, and prices for the coming season',B production in the dominion would drop in sympathy. The opinion was candidly expressed by one expert that the ■i Food Oonurol Department in Britain had ■muddled" the whole business .of meat ' distribution, and that the producdre of .the ■ dominion would have to suffer the conse- ,'■' quencea What these would be. he said * robody could predict, but it was safe to aesume that after the end of the requisition period, (ihere would be a marked '. .drop in prices. Tho faot that tho Imperial authorities had at .last been com- ■■• pelled to realise that special action vas Deoeawxy to clear the congestion in British uteres indicated that prices would require • to be kerjt low to remove the congestion in the dominion stojea As fax as New Zeajttfd was concerned we were confronted ■'' with the position of baring a full season's supply, to dispose of when tihe new season ■was startup. It waa estimated that there would, be at least 4,000,000 carcases in store >n ..November, and this, together with wnat would be either afloat or unmarketed in Britain, would at least represent the sesi- , son's production. It did not require much ! thought to realise that the new season's meat would have a poor of being marketed during the season in which -• • ' was produced, eyan iJ it were offered at considerably reduced rates. The suggested extension of the meat re-. Suction -was mentioned as a desirable ling in the interests of the producers, but doubts were expressed regarding the willingneee of the Imperial authorities to grant • an extension in view of the drop in prices. ' A conference convened afc the request ,-. of the Prime" Minister by Sir James Wilson, » president of iftie Board of Agriculture, to , consider the extension of the requisition and shipping matters hoe been fixed for ftlay 27.

UNITED STATJS*TRADE\ BENEFIT TO NEW ZEALAND PRODUCERS. (From Oub Own Cobbespondent.) CHRISTCHURCH, May 11. The cabled announcement that a contract had been entered into by the Imperial Government with the United States for the - shipment of 36,000,000 pourkU of mufftbn and lamb, together with the recent reduction, of prices .at Home, was referred by a Press reporter to Mr W. Murray, manager of the New Zealand Refrigerating Company, as to the effect it would have on_ the storage position in the dominion. Neither incident, in the opinion of Mr Murray, will havo any bearing on the (position in New Zealand in regard to this year's produce. Any ship- ' ping that the increased meat consumption at ' Home may release cannot be 'available in ' time to - be of any assistance in reducing stocks during the present freezing year, an J the position is similar in regard to the ' American purchase. Mr Murray held a more oheering view in regard to the freezing position. He said there was an erroneous impression that oompanies generally were at the "end of their tether" for space. Such was not tho case, provided the shipping expected comes to hand. The most of the companies will be able to continup operations throughout June, and , probably into July. In the meantime it is necessary to 4imit operations to a minimum, as spaca ', is at present very short.' Probably close on 25 per cent, of the Sotrth Island season is still to be dealt with. This estimate embraces southern works where the season is later than in Canterbury, and unless some- • thing unexpected occurs in the present shipping arrangements, tho season should be got through successfully. In the meantime . the position prevents the handling of the maximum amount of stock The news regarding the American trade was welcomed by those in meat export 1 cirrlee. Interviewed by a Sun representative, one man said: "In She it will help jto work off the glut of meat ■;■. held-by &e Imperial Government; and further, it is creating a market in America, ;/ which will benefit the industry-when the S commandeer is lifted." But, he was asked, /ip-will not the fact that the British people • appear to be, getting the meat held longest / be likely to react against the future sal& , ' of our meat? "Well, the .sale to America will mainly be confined to* lamb," was the , reply. "The major portion of tiie lamb • held, apart from this season's, consiets of \ last season's. There is n6t a great deal of ' tvo-year-old lunb now held, so th'at tha •;. coj.ditaon generally should be good. Americu -; is apparently taking choice meat only, and' will tave to be educated up to the trade ■ : ' that' appears certain to develop," pros- \: pects; for a trade with the United States -,are, .excellent It was further stated that there are ample facilities there,, both for storing and handling frozen meat, and once ; the Amencan.tmbho hae been educated to New Zealand lamb the demand should he great. ... . A liat of weekly kfflings of mutton m the mam centres throughout the States yfh'fenS; < a »**o .«"&■ headed the-list with 42 000 head which, seems ridiculously small when the New Zealand Refrigerating Company alone oan deal with 8000 head ve- ■;, *ciay. ■ *

Inquiry was made whether, when tho commandeer was off, tho demand would be for the choicer Down breeds of lamb. As the Imperial Government bought by weight tho breeding of these classes of lamb in Canterbury has declined The reply was that it was/not thought that m future there would ; be such a demand for such Down breeds ~Tho wool was of better on To crdimry crossbred lamb, and given equal weight of carcase, buyer w b cmld prefer tne-long-woolled animal to the Down breed. Position in wanganfi Dimmor, FKEE MAKKET OR COMMANDEEK? OUTLOOK BECOMING SERIOUS. ' (Fbom Oub Own Corhespondent.) WANGANUI, May 11 The pnwuo3rn\aro muoh ooncerned over tie meat business, *nd the poeition ie regarded along the West Ooast ae serious. In discsKsmg' the mattea: today-Mr OreesWt, manager o(f the Wanganui Moat , Freezing Uanpony, expreesed tih© opinion 'that a good deal of the present trouble could hawe teen, avoided had tho farmers and those in the meat trad© taken a united stand in the mater. This they did not do, and one section thought it would be preferable, to Wave a £ree market while the other favoured the continuance of tho commandeer for another yew. The result wae that tihe Imperial Gorornment adopted the course of least resistance, and d«idf«! to lift the commandeer next ■month, M,r GVesnwdl considered there was still a ray of hope for foe producer. A very important conference wee to be held in Wellington, on May 27, of reprosentntires of the freezing companies, producers, ' and others interested in tho meat trade. 1) this conforenco arrives at an absolutely united decision the Imperial Government may bo induced to reconsider tho poeition and to extend iiho control. In tho pypnt of failure to arrivo at an aproemont the , outlook for rho producer wifl bo serious. It will bo impossible for tho Tmperia! CrOvornmoTrt to ship nnytliiiig like the moat in Now Zoalnnd..' torra before next season, ' and that, will moan that tlio frnozintr companies would oominonce next season wit; the stores half fall. • 'One thinjr was absolutely crvrtain. said Mr OreseweU, atid that ■was that it wns going to cost tfcre times the amount to market tho moat as before the war. 'H^

consolidated ohargpß then were 1 l-10rl, ami

ih'ev wero now 3 ' ,Coming to tho position along the. \Vr»t, Coriet, Mr Orcjsswcll stated that althonph fte farmers wore efcfll holding a fair mim ber of fat stook, the agereento along ihe

coast was not so great ae might bo expected. Another factor in their favour wna tho exceptionally good season, which would cimblo them to hold their stock over tho winter. Somo fermara, of ootirso, wore at $ disadvantage through having stookofl up- with stores for the winter, and in addition having also to carry fate which tliry were unable to got into tho warke. In Canterbury the position wna not eo bad, as fanners there to a largo extent wont in for growing -winter and spring feed, while in Wanganui a number of farmers depended aolely on graee with which to fatten. . . %