MEAT POOL PROPOSALS AND THE ATTITUDE OF HOME TRADE.

Otago Daily Times, Issue 18448, 9 January 1922, Page 7

MEAT POOL PROPOSALS AND THE ATTITUDE OF HOME TRADE.

The pooling propositions, as disclosed ujJ" to the present time, seemingly give no consideration to the great difficulties that are certain to arise in London and the other Homo markets. The celling end of the meat trade will always be dominant as prices depend on the supply and demand. It is" necessary to remember that the British moat trade was only recently relieved of Government control, and a renewal will he moat unwelcome. The British meat trade can only consider the pool proposals aa a form of Government control notwithstanding statements made here to the contrary, we will then commence our pooling operations with a hostile trade at Home, whose previous experiences under years of control make them distrust Government interference with their trade matters, unwilling to assist but probably awaiting an opportunity to profit by tho control’s difficulties, which will surely arise. The larger firms, distributors and retailers, are accustomed to purchasing a part of their requirements ahead, buying to some extent c.i.f.; this buying ahead gave many advantages to sellers in Hew Zealand as it helped towards steady markets and prevented* supplies accumulating in owners’ This buying c.i.f. will, now ‘be discontinued, tho meat business previously carried on between willing buyers and willing sellers brought to an. end; all buyers will hold off New Zealand meat not knowing what policy (if it has one) the Board of Control will pursue. Buyers will not, indeed, they could not, risk buying ahead under such conditions, and this fact will be obvious to anyone conversant with the frozen meat trado as conducted at Home.

The present competitive selling' will bo discontinued, the organised old standing British firms, whose salesmen attend on buyers throughout Great Britain, is to be substituted with an office housing a Control Board, who will expect buyers to come to them for supplies, otherwise an enormous staff with several provincial offices and all th© necessary expenses will be required to do the swiing of meat. This will present to the American firm’s salesmen an opportunity they will quickly seize and profit greatly from. As there will be no forward or c.i.f. buying, again be assured it will .cease, shipments will haye' to 'be landed' and stored on' arrival at Homo porta, . all the heavy expenses for cold storage will be incurred, and the producer will have to pay the cost eventually. . ; . The meat trade, buying only .tbeir immediate requirements as arrivals from New Zealand increase, supplies in the possession of th© Control Bcajp will begin t<> accumulate; or if the supplies are held bock in New Zealand in the supposed regulating of shipments the position will be even worse. The opportunity of realising on any advance will be lost as the supplies will not be on hand to sell to buyers who want the meat at once—not two months hence—and others will not be slow to reap tho benefit. Do not overlook that_ the American firms can put South American lambs on tho London market in about four weeks, or in less time under favourable circumstances, whereas it takes Now Zealand eight to 10 weeks to get its meat on the Horne markets.

The regulating of shipments or supplies will inevitably mean accumulation, and it is quite possible we will again see one season’s moat partly on hand in disturbing quantities on the opening of the next season, and there will be some bad prices realised if this should happen. This inevitable accumulation of Now Zealand meat at one end or the other will weaken the market, buyers not committing themselves to any but small purchases, storage charges mounting "p at the rate of a farthing a _ month; depreciation in condition with its consequent loss in the selling price realised, loss in weight, which is always involved with the holding of moat in cold stores, interest on tho mbney invested in tho stock, in all, not loss than Ad (one halfpenny) per pound expenses and Toss per month to bo paid by the producer is a bill to give him food for serious thinkf’orhaps it is fortunate that the New Zealand producer will be unaware of the conditions that will prevail with tho New Zealand meat under the control of ono office and no competitive selling to allow of any comparisons, our producers will have to accept tho version provided fop them by tho “ powers that bo,” and will never know the other side of the story.— Advt. i