THE FROZEN MEAT TRADE.

Otago Witness, Issue 2086, 15 February 1894, Page 8

THE FROZEN MEAT TRADE.

A REVIEW OF THE PAST YEAR. Messrs W. Weddel and Co. have published their annual review of the frozen meat trade, with a comprehensive table of fluctuations in value. We make the following extracts : — A survey of the situation at the present juncture of events r9veals many features of unusual interest. The course of the trade during the past year has been more than ordinarily eventful, and its character at the moment of writing is undergoing change in several important aspects, while the prospect; for the near future is by no means clearly defined, though' in some directions it is bright and attractive. The - story of the past year's trade is unlike that of any former year. The undesirable constantly happened. Prices fell when, on previous experience, they might have been expected to rise. Arrivals were heavy when with advantage they might have been light, and were absent just when they would have sold well. Drought in Europe forced supplies prematurely on the market. Strikes in England diminished the volume of demand, while, on the other hand, low prices proved the means of opening up entirely fresh markets, and thus laid the foundation of an extended consumption in the future. The general tendency of prices towards a lower level, commented upon in previous reviews, was accentuated during 1893 in the case of almost every class of meat consumed in this country, and the great problem for colonial as well as Home producers now to solve is how to reduce the costs of production and realisation so as to enable them to dispose of an aunually increasing output at inevitably lower prices, and still leave themselves a reasonable margin of profit. IMPORTATIONS into London of frozen mutton and lamb in 1893, as compared with those of any preceding year, showed a material increase, and the decline of imports in 1892 thus proves to have been, as anticipated, merely temporary. In the following table is given a summary of the importation of mutton and limb iutq the United Kingdom from all sources since thef commencement of the frozen moat trade — viz.': New Zealand. Total Carcases. 1880 400 1881 17,275 C 1882 8,839 06,095 V 1883 120 893 201,791 , ; 1884 412,34!) C 32 017 ■ 1885 492,2(i!) 777.891 1886 655.858 1,187,547 ISB7 766,417 1.542,646 . ISSS 939,231 1,975.448 - 1889 1,068,286 2.161769 1890 1,533,393 2.945076 1891 1,894,105 3,358,823 1892 1,539,605^ 3,310,022 1893 1,893,604t 3,889.444 11,324,879 ' 22,073,144 * Including 34,228 carcases delivered in Liverpool, f Including 36,003 carcases delivered in Liverpool. MUTTON. New Zealand. — Farmers in New Zealand continued to realise very full prices for fat stock in their local markets, owing to the free competition amongst freezing companies, shipowners, and speculative shippers, all of whom appear to have operated throughout the year with more or less disregard of the values current in the London market. The past*l2 months, though doubtless profitable to growers, covered a period of loss on the balk of the capital engaged in the trade. The published reports of some of the freezing companies, and at least one of the shipping companies, are eloquent on this point ; and there can be no doubt that the operations of colonial shippers and British purchasers alike were unprofitable in the aggregate. Stocks were light at the beginning of the year, but by midsummer had increased materially. The drought had forced farmers in the south of England to realise their stock at low prices, and had induced holders of New Zealand mutton to keep off the market, in the daily hope of a radical change taking place in the weather. Shipments con- [ tinued to pour into London later in the year, with the idea of benefiting by the reaction expected when the drought broke ; but dry weather continued up to the end of September, before which time stocks in London had gradually mounted up to a heavy and unmanageable total. Prices meanwhile had receded in much the same ratio as stocks had increased, and holders then began to see the absolute necessity for moving off their etocks before the usual autumn supplies of North Country and Continental mutton came forward. The stores in London were full of big, fat, unsaleable sheep, which nobody wanted to buy. Prime sheep fell to 3£d to 3|d per lb, inferior grades to 3d per lb, and for A time the marked was quite demoralised. The quotations then cabled out to New Zealand appear naturally to have checked shipments, and with more moderate arrivals since the end of October, and light shipments afloat, vigorous efforts were made towards the close of the year to raise prices, and so recover some of the Iqst ground. Despite the full supplies of fresh-killed mutton available as customary during the last few months of the year, an advance of about -|d per lb was established during the last quarter, and the year closes with stocks in moderate compass, firmly held, and with price. 1 ? restored to a fairly satisfactory position. QUALITY. New Zealand. — Ifc is a matter for regret that the congratulations tendered to shippers at the clone of 1892 cannot be repeated at the end of 18§3. Although a warning note was struck in our lasS review as to the undesirability of sending " gross " sheep to this market, large numbers of carcases over 701b came forward, the sale of which was slow and unsatisfactory throughout. The difference between sheep that are prime and those that are simply fat does not yet appear to be very clearly recognised in the colony — indeed it almost setms as if some shippers consider that there is no difference, and that sheep cannot pqssibly be too fat for freezing. This i 3 unfortunate, as the current of public taste in this country is setting more and more strongly every year in favour of carcases slightly under 601b, rather than over that average weight. Throughout the thicklypopulated manufacturing districts of England fat mutton is practically unsaleable, while the ordinary retail traders in and around London, or, say, south ofßirmingham, do not, as a rule, care for sheep over 651b. The disposal of carcases over that weight is in consequence largely dependent upon the requirements of contractors for the regular supply of large institutions, and the retail demand in one or two provincial dibtricts of limited area. Amongst these two classes of buyers low prices are almost the first .consideration, and even they will seldom buy big fat shgep except at a material reduction from the prices current for lighter and more popular weights. Lean, meaty oarensea of young sheep, although exceeding 651b in weight, still command good prices for moderate quantities ; but the 'yearly growing favour in which smaller sheep are held should undoubtedly be kept before growers as a guide in the management of thieir flocks. There were probably fewer merinos than usual shipped from New Zealand last year, but a good many of the crossbreds, socalled, presented the merino characteristics

very stroDgly, and ought not to have been shipped as crossbreds ; while not a few others were poor, thin, undersized carcases, quite unsuited to the ordinary requirements of this market.

There was much less distinctness of character than formerly about the carcases shipped from the leading districts of the colony, and this was especially noticeable in the case of North Canterbury consignments, which in many cases failed to maintain their reputation for allround superiority over shipments from other districts. Amongst the best grades, however, there were numbers of sheep of choice quality, equal to anything ever shipped from the colony, 'and the average quality of New Zealand mutton still remains far in advance of the standard of any other source of supply. Australia.— lrregularity was again the outstanding feature. Crossbred sheep if received regularly and in large numbers would soon establish distinct positions for themselves. River Plate. — No tangible improvement in the general quality was established. LAMBS. The past year was full of disappointment to almost everyone concerned in the trade, except those who shipped very early in the season, and such farmers as sold their stock in New Zealand. There was a general over-anxiety to ship to this market, and the demand was at no time equal to the supply. The general quality of shipments received during the past year left a good deal to be desired, a very large proportion consisting of small, thin carcases in little better than store condition. These have done more to harm the reputation of New Zealand lambs than the prime quality of the preceding year's shipments did to benefit it, for they have taught retailers that shipments from that colony are not in all cases very much better, nor worth very much more, than shipments from other sources. A lack of care sin grading was also frequently observable, even in the better qualities, weight being the chief consideration, and in some cases apparently the only consideration, controlling the classification of consignments. The prolongation of sales over practically the whole 12 months of 1893 indicates the possibility of the frozen lamb trade becoming less of a "season " business and more of a continuous trade than hitherto. An indefinite extension of the shipping season cannot yet be recommended, as the probable result would be to lower the general level of values ; but, should a serious glut of supplies again occur at the height of the season, there will be more confidence in holding for sale later on, if the record of the past year be borne in mind. The prospects of demand for next season are fairly satisfactory, but the maintenauce of prices at a remunerative level will depend upon a reduction in shipments and on all-round improvement in quality. GEADING. The unreasonable objections raised in some quarters to the general adoption of some intelligent system of grading shipments has now practically disappeared, and almost every freezing establishment in New Zealand has a recognised mode of classifying its output. The advantages of grading are thoroughly well appreciated by everyone who desires to see the retail trade expand without hindrance. The absence of uncertainty as to quality and weights of graded parcels admits of their rapid distribution in most suitable markets and lessens appreciably the cost of handling at this end. So well established is now the preference for graded mutton and lamb that many of the largest London and provincial retail buyers decline to buy ungraded shipments, even at a concession in price — in other words, are prepared to pay a premium on graded parcels. Existing systems are, however, by no means all perfect. In some case 3, beyond separating merinos and old ewes from the crossbred wethers and maiden ewes, little attention appears to be paid to anything except weight. Unless quality is considered first and weight only second, disappointment is certain to result to both shippers and buyers. Roughly speaking, the various districts in New Zealand are represented by more or less distinctive types of carcase, but in some parts, where the variety of carcases is great or where different works draw their supplies from the same district, it is not always possible to discover any definite basis upon which grading has been effected except that of weight. A further element of uncertainty is introduced by shipping from one district sheep or lambs which were bred or even fattened in another district. GENERAL OTJTLOqK. Supply. — As regards Home statistics the outlook is, on the whole, favourable, rather than otherwise, from the point of view of the colonial producer. The agricultural returns for 18S)3 for the United Kingdom, recently issued, reveal a falling-off amounting to 312,000 head of cattle, and 1,868.000 sheep, the drought of the past year being, apparently, the chief factor in effecting this reduction. Continental flocks and herds have, generally speaking, remained stationary in recent years; but, though the returns for 1893 are not yet obtainable, the ponsensus of opinion amongst European agriculturists is that during the past year, owing to the drought, there was probably a shrinkage in numbers in most countries. The latest returns from the United States of America show a heavy reduction, from 54, 067, 590 in 1892 to 52,378,283 in 1893, in the number of cattle,

and a further small reduction in sheep. So far, then, as the various sources of supply of fresh meat, other than frozen meats, are concerned, it would appear that the statistical position is distinctly better than it was a year ago — that is to say, there are fewer cattle and sheep in sight. Moreover, the average weight per carcase of European cattle and sheep must be lighter this year than last, owing to loss of condition during the drought, though the mildness of the winter, thus far, has done not a little to counteract that reduction. So far as the supply of frozen meat is concerned there is every appearance of its fully maintaining its volume from all sources. It seems hardly necessary to repeat the warnings of previous years as to the certainty of competition increasing between Australia and the River Plate, but the closeness of prices lately in these two descriptions of merino mutton shows clearly the need of recognising this aspect of the trade ; while the fact that about 50,000 crossbred carcases, averaging nearly 601b, have been landed from the Argentine Republic during 1893, proves that South American producers are fully alive to the possibilities of the trade, and that they can ship as fine crossbred mutton as any hitherto received from Australia, should the British market continue to offer sufficient inducement. It is, of course, quite within the range of probability that the indefinite multiplication of crossbred sheep may serve to efface, or at least minimise the existing premium on that description, as compared with merino mutton — especially as it is held by many Australian experts that it is only necessary to kill the merino on its accustomed pasturage (thereby retaining the proper quality, condition, and flavour), in order to insure its more ready acceptance by Home consumers.

The import of all kinds of live and dead meat into this country now represents just one-third of the total consumption, or, say, 700,000 tons out of 2,122,000 tone. The Home production of beef and mutton does not increase so rapidly as do the requirements of the growing population, and the quantities of imported dead meats of all kinds have risen from 13 51b per head in 1873 to 19 lib in 1883, and 29 01b in 1891 (the latest official return). Apart from the question of the increasing annual consumption, these figures reveal a steadily growing dependence on foreign supplies, and afford a guarantee of a sustained demand for colonial beef and mutton. The last census returns show clearly that, out of a population of 37,704-, 283 persons in the United Kingdom, about 25,000,000 represented working men and their families. Twenty years ago the great bulk of the Home production of meat was consumed by the upper and middle classes, the working man using comparatively little meat then. The scale of living amongst the masses of our population is now, however, undoubtedly rising steadily, and the low price of frozen meats is fostering a taste which could not be gratified until within recent years. . The capabilities of this undeveloped field cannot be gauged even approximately; but at a moderate level of prices, and with the rate of. increase reasonably regulated, there can be little doubt that the outlet will prove to be co-extensive with the producing capacities of the colonies. Continental markets are also rapidly coming into view, and though there are customs regutions, prejudices, heavy expenses, and other drawbacks attendant on opening up trade relations with new countries having protective tariffs, it only requires patience to secure these avenues to colonial shippers. During the recent military operations in Morocco, the Spanish Government, through their agents, desired an offer to be made for supplying a small sailer cargo of frozen beef and mutton for the purpose of provisioning their troops while actively engaged. Although the transaction was not completed, it suggests large possibilities for frozen meats in time of war ; and so soon as this is recognised by European Governments, it is permissible to suppose that they will not in future wait for an outbreak of hostilities before making their arrangements. To sum up the situation in a sentence, there are revealed by the foregoing facts and figures (1) a falling off in supplies available in the United kingdom and North America ; (2) stationary or retrogressive statistical conditions on the Continent of Europe ; (3) the growing dependence of this cquntry upon foreign sources of supply ; (4) an increasing consump? tion per head of population ; and (5) the prospect of an increase in the popularity of frozen meats. In order successfully to command the markets of Europe it is necessary for colonjal shippers to continue to aim at reducing the costs of production and realisation, maintain? ing at the same time the quality of their shipments and keeping the increase of exports within moderate bounds.

Among the Tainui's. cargo for London are 5479 packages butter.

Wild barley is abundant in various parts of Canterbury. The injurious effect of the seeds was well shown by the skin of a sheep submitted to members of the Canterbury A. and P. Association for inspection. .The seeds had penetrated through the wool and the pelt, rendering the latter commercially valueless. So thick were they that the appearance of the skin was that of a caraway cake pretty full of caraways, the sharp points of the seeds having gone right through the skin itself.