FROZEN MEAT PRICES

Otago Daily Times, Issue 18751, 3 January 1923, Page 6

FROZEN MEAT PRICES

A MISLEADING POSITION. TEMPORARY SCARCITY OF ENGLISH LAMBS. (Thom Otm Own Cobbbspondent. ) LONDON, November' 24. The present position with regard to lamb and mutton prices is rather extraordinary, and one which is likely to mislead people in the dominion. Agents here are trying to impress upon their clients in New Zealand the need for accepting a more normal figure for next season’s early shipments. The high figures of Is Id for lamb and 8d to 9d for light-weight mutton which is at present ruling is hardly an indication of the immediate future, and they are having an unhealthy effect upon business. It is . understood here that killing is going to commence earlier than usual in the South Island. For November-December shipments there is a very keen inquiry, but it cannot he too strongly impressed that it is a very limited one. Some lines have been sold at 1s OJd, c.i.f., but the total sales were not great. New Zealand growers are evidently holding out for this price for January, February, March, and April shipments. Those best informed in the meat trade are strongly of the opinion that the market cannot absorb large quantities of lamb at this figure. The business becomes distinctly unprofitable from the retail butchers’ point of view compared with other meats such as chilled beef and pork. Had, say, half the New Zealand shipments for December and January been sold c.i.f. at prices, say, from Hid to Is, it would have been a distinct safeguard to the market. The question of prices during the early months of 1923 now depends upon the amount of shipment from New Zealand at the beginning of next month, and what the arrivals from South America are. Shipments of lamb from Australia have been heavy during October and November. • Some of the earlier consignments are now coming to hand. On the average these lambs are of poor quality, hut, of course, they will be sold, and they will enter into direct competition with second lambs from New Zealand, and it is the opinion of many in the trade that it would be advisable for New Zealand to hold back second quality lambs for shipment later in the year. This applies more especially to the London . market. MR J. S. JESSEF’S EXPLANATION. Mr J S. Jessep threw some further light on this subject when I saw him yesterday. “English supplies,” he said, have not come on the market to the extent which was anticipated. I am of the opinion, first, that English farmers have withheld their supplies owing to the abundance of feed. Secondly, more farmers are turning their attention to sheep raising, as .agriculture is not on a paying basis. Therefore numbers of the sheep which would have come on the market are being withheld for stock purposes. I consider that the home supplies will be greater in the spring than is usual owing to the very large ijumber of lambs bein'* held over because of the ample feed available, and this may have qu'tea prejudicial effect upon the value of frozen mutton and lamb during March, April, and May ° f “Thf withholding of ..the English supplies is leaving the market very bare of hom i ofnff awl tins, combined ■with tne small arrivals during October and November of this year, is the cause of the present very h gh prices ruling for New Zealand lamb and mutton. Naturally, buyers here, who must have a certain quantity of New Zealand lamb for their customers, begin making inquiry to buy forward earlier shipments for the new season.