THE FROZEN MEAT TRADE.

Otago Witness, Issue 2083, 25 January 1894, Page 11

THE FROZEN MEAT TRADE.

By 0. Fetherstonhatjou, in the Sydney Daily Telegraph.

111. NEW ZEALAND AND AUSTRALIAN PRICES. Now, while the New Zealand sheepfarmer has been having such a very rosy time of it as regards the prices of his surplus stock, the Australian grazier has had, and is having, exactly the reverse. This is doubtless to some extent his own fault, for having overstocked the whole colony and put 62 million sheep on an area of country scarcely fitted to carry 56 million and fatten the normal surplus from that number. But even for the sheep he has fattened and frozen and exported, he has not received anything like a value proportionate to that received by New Zealand growers. Again, it may be said that is because merino mutton is not in favour at the other end. Granted. But how is it that 1 13-16 d can be given for merino mutton at New Zealand factories, with fat and skin to the owner, while here the highest price obtainable at the freezing factory is equal to from £d to Id per lb, or about Id below New Zealand. Crossbred mutton is worth in New Zealand 2-^d per lb at the factory, skin and fat to the owner also. The best price obtainable for crossbred mutton at the factory here is equal to about Id to l|d per lb, with skin and fat to the owner, or again Id below N-ew Zealaud. At Homebush lately we saw 16 721b prime crossbred?, not too fat, 24 months old, with six weeks' wool on, sold for 7s 9d. Theeo sheep would have been worth, quite 15s in Now Zealand at the present time.

THE DIFFERENCE IN VALUE

What causes this enormous difference in valueß ?

We are prepared to admit that it can't be expected, in the case of the dainty and fretful merino, that mutton frozen in Australia at the seaboard, after being travelled and trucked long distances, will give as good results in the Home market as merino mutton frozen in New Zealand, close to its own pastures— and we are willing to allow a depreciation of id per lb for this — but plenty of sheep are delivered at' Aberdeen without having been knocked about, and this does not apply to them. Again, the crossbred mutton suffers much less than that from the merino from the effects of travelling, yet Australian breeders of crossbreds have to submit to over Id reduction for thair mutton as compared with New Zealand. We are again prepared to admit that the Australian crossbred is for the most part not so carefully bred with regard to freezing purposes as are the best New Zealand sheep, but here again -|d per lb would amply cover all deficiencies.

Is it tbafc we have not enough freezing power? As a matter of fact we have mere freezing power than we can keep going. How, then, are we to account for this if d per lb over and above the -|d we are prepared to concede for difference in quality ? One reason is that the charges for the most part are too high. This, in Melbourne, will account for %& a lb, and at Lake Creek for id. Another reason is that while there is existing freezing power enough, it is not lor the most part Bituated in the right position, thai is inland and close to the sheep's pastures. Even Aberdeen is not far enough inland. Farther, the existing factories, with one exception, are run by speculative companies, and what the grower should get goes in dividends to shareholders. Finally, to crown the discomfiture of the Australian grower, it is currently and confidently believed that, as will be presently shown, he does not even receive the full value of his meat at the other end, and that what with middlemen, combinations, rings, and •• tricks of the facade," there is little left the Australian grower, if he freezes and ships his own meat, but the "husk," in the shape of the pelt of the wool, &c., he sells at the factory from Jd to Id per lb, in addition to the fat and skin.

THE NECESSITY OF CO-OPERATION.

Truly, your correspondent did not write without reason when he stated, " How to break down the imposition and fraud that seems so inextricably associated with the sale of frozen meat in Great Britain is the crux of the question at the present time, and certain it is that nothing less than a great co-operative effort on the part of producers to secure due protection of their interests in tho Home marbet can possibly grapple with the evil."

Full values are secured to the New Zealand grower through his having been wise enough at the outset to establish his own factories. This has acted as a check on the speculative companies, and has not only kept up priceß, but has had the effect of keeping down charges. Such charges as are imposed by some of our Australian freezing companies dare not be put on in New Zealand, because the graziers can always fall back on their own factories.

NEW ZEALAND AND AUSTRALIAN MUTTON

It is rather remarkable that while New Zealand mutton has only fallen l-6th of Id in 1892 below the average of seven years, Australian mutton has fallen 4-6fchs of Id in the same time. The average price of New Zealand mutton in 1892 was 4]-d, and of Australian 3jd. At present both are somewhat below the average. It is satisfactory to note that during the late heavy glut in England of inferior homegrown mutton, Australian mutton did not suffer quite as much in value as did New Zealand. We believe this is because there is fcco much "big" mutton going Home from New Zealand, and the Home consumer has bad his taste educated. He can now distinguish between a haunch of well-flavoured, succulent, halfbred mutton, and a coarse, tasteless, and flabby joint from a three-quarter or sever.eighths bred longwool. The Home buyer has pronounced most decidedly in favour of the halfbred cheep weighing from 551b to 651b, or in favour of sheep with Downs blood of similar weights, and this improved taste will tend to bring him nearer to the merino, always supposing that the merino is placed on the market with the bloom on him, and not dried up by long journeys in trucks and knocking about.

Mr H. Overton, a first-class authority and successful breeder of sheep and ewes in Canterbury, New Zealand, tells us that there is no sheep like the half breed, and that the merino ewe is the foundation of all good freezers. He thoroughly believes in the pure merino ewe. We think there is much misconception as to what is called crossbred mutton. We Australians turn up our noses at it, and if our butchers send us coarse tallowy mutton we cry, " Away with it ; we caunot eat it." In our travels through New Zealand in the early part of this year we attempted loyally to eat mutton on all occasions, but the mutton in the North Island "put us through." We could, not " stomach it." For the most part it was coarse and tasteless, and not over-tender. We wondered at the taste of the British consumers who preferred such stuff to the Australian merino. But " hoolie, hoolie, nae sac fast."

On arrival at Chiiatchnreh we made another start, having been told we should

find a material difference. We never tasted nicer meat than was put before us in Christchurch in the shape of chops from a halfbred sheep. Tender and succulent, with a good flavour, we never got such a chop in any Australian metropolis though we may have eaten quite as good in the bush. We at once exonerated the British consumer.

In M. Weddel and Co.'s circular of July 7 they remark : " The great bulk of the New Zealand mutton now being marketed consists ot big carcases, full of fat and short of lean, quite unsuited to the requirements of the Home market, and just now unusually difficult of sale." An English butcher writes : — " It would pay New Zealanders to be satisfied with less wool, and try to get better mutton." [Just note, we Australians can combine both, having the " foundation," the pure merino ewe. — C. F.] Its greatest fault is that it is too fat. He says there is too much of the Lincoln, Romney, and Leicester, and it appears as if the Downs breeds ought to be more used. [With plenty of good big merino ewes we should not need to fall back on the Downs sheep. — C.F.] He is guided by the tiste of his customers, and they do not like fat. He acknowledges that plenty of leaner sheep from Australia are cut up and passed off as Canterbury mutton.

Although New Zealand growers receive, as we have seen, very full value for their sheep, it was not always so, and at the inception of tho trade, while large quantities of meat were frozen and shipped by growers on their own account, great dissatisfaction was freely expressed by growers, and a considerable number of abuses were complained about and discussed. Similar dissatisfaction is felt by consignors of Australian meat, and the opinion is very freely expressed that the consignor does not receive full value for his moat at the other end.

FORWARD BUSINESS.

Meantime it is a matter of congratulation that an increasing forward business is being done in New Zealand on the c.i.f. basis (cost 1 , insurance, and freight), under which tho consignor delivers f.0.b.,' paying, in addition, freight and insurance. The buyer, however, takes all risk, and the consignor is saved the London charges, which amount, at the lowest, to over id per lb, or Is 6d on a 601b wether ; and this is the lowest reduced rate ; until lately it was much more.

Under another system buyers pay a certain price for meat of specified grades, delivered f.o.b frozen, the buyer payiDg freight and insurance — about 2£d per lb is the price under this system for crossbred sheep. Merinos, if taken at all, would db -£d per lb lower. Yet another mode of rate is occasionally arranged in New Zealand, whereby the factory, the shipping owner, aud the salesmen each drop a percentage of their several charges, and the syndicate share the profit or losses, as the case may be.

A large and increasing business is being done under these three systems of sale, and, as the London charges may either be dispensed with or cut down, it is to be hoped that the rate of meat under these systems will be pushed and increased to a large extent, for the system of sale at Smithfield, as we have seen, cannot be too strongly condemned.

In their annual review of the meat trade for 1892, Messrs Weddel and Co. state, with regard to this " forward " business : "This has again shown a fair amount of vigour ; a steady trade in small lines has been done throughout the year. Apart from the steadying influences of this business upon London values, farmers in New Zealand have found it most useful in providing them with a market on the spot for their meat, and by which means they transfer to other shoulders the risk and delay attendant upon carrying to a distant market." On the other hand, retailero have consolidated their trade by \seing enabled to rely on suitable shipments, insttnd of leaving it to chance to buy in Smithfield .markets. It would seem that twothirds of the fr(/teu meat sold in England does not pass through Bmibhfleld, but we cannot be sure whether it is sold altogefclaar outside Smithfield or not, and in any case Smitkfiold uppcam to regulate the prices.

THE GREAT SMITHFIELD MARKET.

Smithfield, it is needless to say, is the meat market of London. It is said that 5000 tons of meat are sold there daily. If so, that is equal to 70,000,000 501b sheep if the whole were in mutton. The sales commence at 3 a.m., and there are over 100 salesmen who cell frozen mutton. No meat is sold by auction at Smithfield. All is disposed of by private contract. It seems a price for the day is fixed each day. The price is quite arbitrary, and is fixed by certain of the large holders. There seems to be no check on the price fixed. At the same time there seems to be wonderful unanimity among the 100 or so salesmen who sell frozen meat, for if you go to Smithfield to-day and ask the price of frozen meat, one and all will tell you, say, 4£d for beat Canterbury, 3^d for best Sydney, while perhaps the very next day they will all quote the prices \d lower or higher, as the case may be. Now who told each salesman the price? Without doubt those holders who were in a position to fix the price for the day. But why 3d this morning and 3£d the day before ? The butchers have nothing to do with fixing the price. They are as well prepared to pay 3£d this morning as they were yesterday. The whole system of sale appears to be one which leaves a wide opening to men with elastic consciences, and we all know how easily "poor conscience" adapts itself to trade customs that help to swell commissions. Now there are certain rules and regulations in force at Smithfield under which consignees need notf and are not, paid the full amount realised by their meat. Until quite lately, and possibly even at present, there has been a certain " metropolitan rule " in force, under the incidence of which consignees could be and were defrauded, as was so very clearly demonstrated in the Henessy v. Hick case.