MEAT INDUSTRY

Otago Daily Times, Issue 23883, 10 August 1939, Page 8

MEAT INDUSTRY

POSITION IN SOUTHLAND REPLY TO MINISTER'S COMMENTS CASE FOR FURTHER FREEZING , LICENCE "We have ample evidence to show conclusively that an additional freezing- and export licence is required for Southland, and that the extra competition is justified, and must react to the benefit of Southland farmers. The Minister of Marketing (Mr W. Nash) dealt with the matter in the first place, and we will take it up with him as soon as he returns." These remarks are part of a statement made- by Mr A. Napper, honorary secretary of the Southland Primary Producers' Association, on behalf of the association (states the Southland Times), in reply to a statement by the Minister of Agriculture (Mr W. Lee Martin) on the meat industry in Southland. The interview with the Minister was reported on Monday. "We wish to deal briefly with the points set out by the Minister under his four headings. "1. Return to producers: Southland lamb is admittedly the best produced. Why then, should Canterbury farmers receive even .016 d per lb more? We are justly entitled to a better rate per lb for our lamb and are certain we could get it with competition. "2. Accommodation. We have definite proof that there was a good deal of congestion last year, and that frequent heavy carry-overs, particularly at week-ends, caused loss in weight and consequent financial loss. The Minister tacitly admits a shortage of space when he 'hoped that storage facilities would be improved,' . Further, the Government recently called a conference of freezing companies, and requested that storage space be increased to national requirements. An additional freezing works would supply this further accommodation. "3. Killing and freezing charges: Fixation of charges has not benefited the producers at all.. Only a fraction of our lamb is killed on account of the fanner. The great bulk is bought by the freezing companies or other exporters. "4. Space allocation: There is now a practical monopoly of space at the Southland works and the amount of competition from Canterbury buyers is the only protection we have. "Very Unsatisfactory"

" Generally, we regard the Minister's statement as very unsatisfactory, and will not let the matter rest at that. We are convinced that Southland farmers must take steps to protect themselves against the companies' monopoly. The huge increase in fat lamb production over the last 15 years, with the probability of another big increase, warrants an increase in facilities and service, and we hold that this can best be achieved by the erection of new works. Our view is supported by the fact that about 12 applications have been made for a new licence by individual groups of hard-headed business men. These groups would not be prepared to make the capital outlay and meet operating costs unless they were convinced that they could run the proposed works at a satisfactory profit. . "We particularly wish to draw the producers' attention to the final sentence in the report where it is stated that 'the position will be reviewed at the end of each season's operations on the basis of information which companies will continue to supply.' The association is determined that the producers' side of the story will also be considered and to that end two of our members, Messrs H. P. Mclntyre and A Napier, consented to stand for election to the Electoral Committee of the Meat Board," concluded the statement.