FROZEN PRODUCE LETTER.

Otago Witness, Issue 3005, 18 October 1911, Page 20

FROZEN PRODUCE LETTER.

AFTER TilK STRIKE. A FIRM BUTTER MARKET. (Fbom Ofß OwnCobbespondent.) LONDON, September 1. One might well have expected a dump in prices as an aftermath of the strike, seeing that stocks piled up rapidly in the brief days of "war," both in «toro and arriving ship. One of the features, however, helping values to keep up in the admirable way they have done, has been • the extreme, slowness of discharge of the phips during the week or so that their holds have been free to the unloader. Sellers of New Zealand lambs have had the greatest difficulty on market to get their Stuff to band. I have been glad to learn that, as far as New Zealand meat sellers are concerned, the effect of the strike has been inappreciable as regards actual money loss, the main trouble being loss of time caused in getting rid of stocks. Taken all round, a good fortnight has been lost, ana this, of course, might in certain carcumstan'ces be serious to a trade that has just an allotted time—-to the end of September - to clear its stocks on the tide of public demand. However, the general position is fortunately that prices stand just about where they did before the strike., Beef, after its momentary uplift owing to con gestion of traffic, is again a terribly cheap and dragging article Trade generally is very dull at West Smithfield this week, which is only to be" expected at this time of the year, but in London it is much better than in the provinces, where transport troubles still exist. The activity of jobbers after the period when all was shut down" is a feature that is just keeping things moving on market, and prices are reasonablv firm.

AUSTRALIAN BRANDING PROPOSAL. ■ In view of the doubt that has many timos been cast on the possibility and efficacy of branding meat, it is rather curious that Dr Stuart, a veterinary official of New Scuth Wales, who recently came to England on behalf of the Commonwealth, should make recommendations- to the Australian Government for all mutton and lamb oarcases exported from that continent to have a leaden seal attached and each quarter of beef to be branded in two places. This procedure, it was thought, would increase the favour of Australian meat in overseas markets, including, it has been said, North America. The operation would certainly cost more for the exporters, who already have the label tag of the Export Department to pay for, and one need not sco over the whole ground of the branding controversy again to indicate the hazard of an advantage accruing to the meat. Evidently the exporters are against the proposal, as the Victorian Exporters' Association is protesting against the idea and-is getting the trade on this side "to declare against it. What would be the use of the idea in European markets? "-. DEARER COLD STORAGE. In my last letter I announced the decision of the London Cold Stores Conference to advance their management rata of storage by 7£ per cent. —that is, from 20s 9d per ton for 30 days' storage and handling to. 22s 3d. I now' hear that it is their intention to make announcement of a further rise. Whether this is being done on the principle of '"'taking the bull by the horns" in view of the known attitude of the meat trade to protest against the rise I do not know, but the Incorporated Society of Meat Importers has decided to send a deputation to the store owners on the subject and will evidently combat the rise. Moreover, the Port of London Authority ■ is to be reminded of its promi.se to receive .a deputation from the society prior to any revision of the port rates being, made. How long, the Port Authority will remain a party to the London Conference I cannot say, but now that the docks stores—of a total capacity of three-quarters of a million carcases—are under public control the predominant partner in this cold storage combine soexs lifoly to drift away from this business circle

A COMPENSATION QUESTION. I understand that the Incorporated Scoiety of Moat Importers .is practically sure of success in getting from the City of London Corporation consent to render compensation for imported meat seized and condemned ex store or ship—that is, compensation out of the proceeds of the disposal of the meat for purposes other than as food. The corporation will not, I hear, agree to yield up the meat to the owner, but will traffic the meat itself and charge expenses incurred. BUTTER. At the time of ■writing- TcO'ley Street is just congratulating itself on having emerged

from the abnormal conditions and difficulties of the strike. Panic, transport bother, and drought have all heaped up prices to extraordinary figures. Now that two out of three influences mentioned have faded, spot business is coming back to the normal level, and yesterday (August 31) saw a drop of 6 kroner in the Copenhagen quotation. The position of the market, in spite of strike accumulations, which, were very considerable, is quite strong, however, and I anticipate no serious reaction. This could hardly occur with the legacy of the droughty summer in Europe and elsewhere. Germany is a keen buyer, Denmark's output is failing, Dutch, Irish, and other production i© on the email side, and the trade is fully cognisant of these conditions. As far as " colonial" butter is concerned, it is not expected here that Australia's exports will be at all up to last season's in quantity. Drought has touched also that Continent in places, and the exceptional flood of butter that prejudiced values several times last season is altogether unlikely this year. In the circumstances, forward business has baen transacted with greater freedom tharr usual up to now, New Zealanders having evidently been tempted to sell forward because of the higher prices being laid before them. The prices of 114 sto 116 s (c.i.f.) are mentioned as rates accepted for season's outputs. Mr Lowe, of Weddel's, gives it to me as his opinion that 'as regards cheese contracts/ producers have thrown their chances away, having accepted 60s, 61s, and 625, where 65s to 70s would be the probable figures made on consignment.