FROZEN PRODUCE LETTER

Otago Witness, Issue 2978, 12 April 1911, Page 38

FROZEN PRODUCE LETTER

MUTTON TO BE CHEAPER.

IMPORTANT BUTTER QUESTIONS.

(Fbom Our Own Correspondent.)

LONDON, March 3,

The., attitude just now of those who have the greatest influence in moulding the fortunes of the frozen meat trade—that is, on the sellers’ side—is that a strong policy must be exercised to secure that conditions do not grow up to militate against the success of the market throughout the year —in a word, to keep clear of congestion, which spoils a market from the start. It is no use hazarding a guess at the number of Australian lambs in store; the number, doubtless, exceeds half a million, and New Zealand .stocks are heavy as well. But there is a still more sinister influence. The South American importers are simply swamping the market with chilled beef, and this, as I said before, absolutely regardless of the slump they bring about in prices. The result, of comse, is that chilled beef rules the market, because the greatest number of people after all will always buy what bulks most for their money. And the- consequence is that mutton is neglected all round. THE STRUGGLE FOR DEMAND.

Moreover, it would l ssem that there are more than two horns to this dilemma. Australian is more than ever the cheapest meat, and with all the lambs on offer, which go, many of them, I guess, on to the consumer's table as small mutton, there is all the less chance for New Zealand. But the passing of public demand from Australian to New Zealand, which takes place at this time of the year, has quickened the demand for the latter meat. It remains a fact that, in spite of the efforts to make a quick trade in New Zealand lamb. North Islands and second qualities have hung fire, Canterburye, all too scarce, being the only free sale. THE LOWERING OF MUTTON PRICES. Prices of New Zealand mutton have, in view of all the conditions I pointed out ip my first paragraph, been on the wane, and I think I am right in saying—though I am the first to communicate the information—that the big sellers have practically agreed to make a cheaper market with New Zealand to enable it to clear at the present juncture. Its price margin is undoubtedly against its Clearance, and rather than have, as stated above, choked cold stores now, sales l must be forced at easier rates. Tire Coronation must not be relied upon to do too much in the way of getting rid of huge supplies. The tendency on such occasions is always to overstock a market, and I remember how some of those who laid in stocks on a previous occasion of the kind badly burnt their fingers.