FROZEN MEAT TRADE

Otago Witness, Issue 2914, 19 January 1910, Page 8

FROZEN MEAT TRADE

A COMPLEX PROBLEM. (From Our Own Correspondent.) AUCKLAND, January 11. The position in regard to the frozen meat trade seems to be just as bewildering and just as perplexing as it was six months ago, when it suddenly became known that the bottom had fallen out of the London market, and the supplies at Home were so great that colonial agents were at a ices to know where to store new shipments. The problem is still full of complexities, and even now (says a writer in the Star), when we are right in the thick of the 1909-10 season, it is impossible to s-ay what is going to happen either in New Zealand or at Home. Last year growers hung on to their lambs at the beginning of the season, because price® were not up to the average, and the longer they held the bigger grew the lambs and the lower fell the prices. In May and June the slump came, but its significance was not realised in time to allow sheep farmers to regulate and prepare for a smaller lambing this year. The result is that in the Auckland province, as in other parts of New Zealand, there are more lambs than ever this year, and prices are worse than ever. The price for lamb to-day is 4d to 4id, c.i.f., in London, and in Auckland 3^d; under 361 b, 2Jd ; between 561 b and 421 b, and 2|d where the carcase goes over 431 b. Those are the prices quoted for prime New Zealand lamb locally, while Christchurch can be reckoned as being worth JJ per lb more. Last year at this time the price for carcases of between 281 b and 421 b was 4d per lb, and 3£d par lb for carcases of 431 b and over. This presents a difference of J*d per lb, or Is 6d per head o,n a consignment of 361 b lambs. It will, therefore, be seen just how serious the position is as it at present confronts the sheep farmer and the freezing companies. The tremendously heavy stocks placed on the English market last season have not yet been cleared off, and on top of this has already been fired during the last three months the Australian output of over a million lambs. The Australian season extends over the months of October, November, and December. Our frozen meat industry does not commence until tjie Australian season is finished. In Auckland the season commences in December, but up to the present- scarcely any lambs have been sent forward. Farmers are waiting for better prices. The longer they wait the more serious does the position become. Prices may go up, but the chance at present appears a very remote one. The majority of authorities on the question -are not optimistic on this score. They can see > no gleam of hope ahead. The longer growers wait the heavier their lambs become. The heavier., they get the les-s money per lb do they receive. Likewise, the greater the rush will be as the season draws to a close. The number of lambs put through for the frozen meat trade in Auckland province has steadily increased. Two years ago the total was 61,000 lambs. Last year it was 87.500. This year It is likely to be even greater. The most recent returns show that the flocks in the Auckland province have topped the million mark, and so the number of lam us for the English market may naturally be expected to show an increase.' Farmers may decide to cull out a good many ewe lamb®, and so relieve the crush, but' there is the question of pasturage, and, with the possibility of continued dry weather ahead, the farmer cannot easily make up hi® mind what course of action it will pursue. Much interest naturally centres in the proposal to hold a conference of those interested in the frozen meat trade at Christchurch towards the end of this month.- The question of co-operation and possible regulation of prices, supply, and demand will then be thoroughly considered. "TTE f 'T OF LONDON MEAT PvING’S OPERATIONS. A NEGLECTED WARNING. In the opinion of Mr G. L. M. Cunningham, who is in a position to speak witS authority on the subject, the frozen meat trade of New Zealand has, through inexcusable lack of foresight on the part of those concerned in it, and a total disregard of repeated warnings, gradually drifted into a state of being practically controlled at will by the operations of the London meat ring. Mr Cunningham, who ha® been manager of the Wanganui branch of the United Farmers’ Co-operative Association. also manager of the Wellington Meat Export. Company, has quite recently returned from a visit to- the Ola Country, and, being at present in Dunedin, was on the 13th interviewed by a Times reporter , on the subject of the position occupied by j New Zealand in the London meat market, and the repeated -efforts he has personally made over a number of years in tho direction of inducing New Zealand exporters to take some united step in the way of exercising some control over their own interests in Tand the provinces. From what Mr Cunningham says, the time for doing anything in that direction has, however, now unfortunately j passed. “ About 121- years ago,” said Mr i Cunningham, ‘‘ I worked out a scheme for the" conduct- of the frozen meat business of New Zealand in England. In accordance with that scheme I suggested that the whole of the freezing companies j in New Zealand should pool for the special purpose of erecting cool chambers and j thawing chambers in the main centres of | Great Britain other than London; and | at the same time, having a very strong "

suspicion that we were not being treated l as we should in London itself, that certain measures should be adopted to protect ourselves there. I suggested that our meat should be branded with an indelible brand on the loin, leg, and shoulder, and that it should be graded here by the Government, in the order of first, second, third, and fourth grades, as the case might be. I further suggested that one man should be sent Home from New Zealand to take over the sole conduct of the distribution of the frozen meat on the Home market. My reason for suggesting that this distribution should be undertaken in, the main centres other than London was to get away from the Smithfield ring, which is composed of salesmen who sell to butchers, and butchers who buy from the salesmen, and in nine oases out of every ten the butcher and salesman are partners in the business. This ring was, of course, too strong for New Zealand exporters to hope to fight against, and that was why I advocated leaving them alone. In those days there were no thawing or cool chambers in the provincial centres, and therein lay our chance. It was there that we had the opportunity of stepping in. But again delay lost New Zealand the day. The tentacles of the octupus took in the provincial centres also. The reason of my advocacy of Government grading of mutton was that the butchers at Home could send out to any buyer here or perhaps direct to the shipping firm, and ask how much, and ascertain precisely what he was going to get. If a Home butcher were to simply give an order to a grower out here, without beino- given a guarantee, what would he get? Probably all the old ewes and rubbishy stuff procurable, which, of course, ■would be considered at this end smart business. Then, the appointment of one for New Zealand at Home to represent the freezing companies would mean dispensing with the services of a number of ayents. At the time of my moving in this matter there were 17 different companies in New Zealand, and each had one or more salesmen at Home. Supposing, for argument’s sake, that the Home agent, of a New Zealand company had 200,0 UT carcases on hand, and he saw in tne cable news that a steamer was loading up at Wellington with 150,000 carcases for different other firms, what was he to do. He would immediately force the mutton he had on hand on to the market, and unnecessarily drop the prices in order to sell and get his commission. This, brxelly, was the position as set out by me i 2^ years ago.” „ . , ‘‘ Seven years ago, said Mr Uunmngham, “ I revived this matter, and when I got home to England just recently! made it my business to go to the bmithfield market. I then satisfied my sell that the scheme which I had first propounded over 12 years ago was the correct thing, but the time for bringing it into operation had passed. Ihe bmithfie!d ring had anticipated that we might possibly go into the main centres of Great Britain, and has now established cool chambers in all the main centres. New Zealand is very much behind. I understand that a conference of New Zealand freezing companies is to take place shortly, but it is now obviously too late for anything tangible to be done. The unlimited millions behind the meat ling would defy fighting.” Continuing; in regard to his observations when at Homo a few months ago, Mr Cunningham threw some light on the operations of the London meat ring. Going through the Smithfield market his convictions as to the ring s operations were amply confirmed. The New Zealand companies were bled to the last degree. For instance, one big company, with unlimited capital at its back, which has now actually extended its interests to New Zealand, had recognised that there was a possibility of the New Zealand concerns establishing cool chambers in the provincial centres, and promptly stepped in beforehand. They thus secured the market in the main centres. Shops were .established all over the country, and many others brought up. meaning, of course, that these establishments were supplied solely by this huge concern. Now, as already stated, they had invaded New Zealand, and an awakening must come to the freezing companies of ths Dominion some time. At Home they can practically fix the market as they choose. Prices ca.n be brought down with a rush, everything available bought up, and then the market rushed up again. They reap the profits, and the freezing companies stand the losses. There is another matter : An allowance which is termed “ freezing weight,” is taken off the weight of the carcase at this end. but the London ring deducts 21b and the odd ounces off every carcase on its own account. For example, to place the deduction at 21b on every carcase, 1,500,000 carcases would mean 3,000,0001 b, and with the price per carcase at as low as 3d per lb. New Zealand is robbed by the meat.ring of £37,500. First, there was the warning given in regard to the methods in operation on the London market. That was unheeded here. Then the same warning note was sounded in regard to the provincial centres. That was unheeded also. The meat ring had netted both, and now New Zealand was confronted with an invasion of its own. home preserves by the very same ring against which it had been so repeatedly but fruitlessly warned.