FROZEN PRODUCE LETTER.

Otago Witness, Issue 3085, 30 April 1913, Page 17

FROZEN PRODUCE LETTER.

NEW ZEALAND AGENTS’ ASSOCIATION. {From Orb Own Correspondent.) LONDON, March 14. The spring frozen, meat market is in its early stages proving an exceedingly healthy one, and the crisp weather is adding to the good tone. The backbone of the trade is the strong position of Home supplies. Fat cattle supplies are far below the average in most markets, and fat sheep have been 56,000 short in English markets in seven weeks. The present prices of both mutton and store sheep are responsible for the holding back of lambs. As a commentary on the situation, it is curious to note that there is actually being carried on just now an export trade in English mutton to the Continent. In frozen meat there is firmness all round, and this is a good check on speculative buying. The future, that is what one would call the after-Easter trade, lies to some extent in the hands of New Zealanders and other producers. If supplies come forward steadily with an avoidance of any huge shipment to swamp the market at any particular time, there is no reason statistically, so far as one can see, why the remainder of the season should not continue first class for the seller. The labour troubles that threatened —the Midland railway strike and the London bakers’ strike—have collapsed, so that there is no immediate prospect of the demand falling away through poverty. Beef is better, frozen New Zealand hinds making 33d, fores 3Jjd. The general demand for frozen meat from the provinces is good and is developing •well. THE RETAILER’S POSITION. Although everyone knew the frozen meat retailer had had u stiff time last year, the fact that Eastman's, the great retailing concern owning 1400 shops in different parts of Groat Britain, had decided to pay no ordinary dividend on its past year’s working comes as something of a shock co those who arc familiar with the average good fortune of this well-managed concern. If Eastman’s cannot, do well, no frozen moat butcher can, is an axiom, and when Mr JJ. Thomson, the chairman and managing director, told shareholders the other day that the 136,960,4331 b weight of fresh moat they had handled in their English and American businesses had cost them .47d per lb more than in 1911, an increased cost of £268,214, he was stating a position that had meant complete ruination for many smaller businesses. It would seem that in this screwing up of meat prices the butcher has got to go, or many of them have, for Mr Thomson said to Eastman s shareholders “ Thero are far too 'many retail butchers’ shops in the country at present. I have no doubt the balance will be adjusted in time by the closing of superfluous shops and the survival of the fittest, and we are well able to hold our own until conditions are more favourable. It has always been the case in this trade chat conditions some years favour the wholesale businesses and other years favour the retail businesses. To Mr Thomson’s remarks I will only add one comment. If moat prices are to remain dearer permanently they have to bo raised co the public. Tac survival of the fittest, as Mr Thomson puts, it. is evidently to be the process which will help- the retailer to pass on the burden. Buc there are more balance sheets to come yet. There is Fletcher’s, for instance. Then (here are also the rest of the Argentine freezing works to report on last year. The River Plate Fresh Meat Co. has made 10 per cent, dividend, 5 per cent, more than last year, and 5 per cent, less than for 1910. its profits being midway between that of 1910 and 1911. Deaf stock must limit the profits of most of die works, and never more than now. PORT OF LONDON’S EXTENSIONS. The Port of London Authority has “ got a move on ” with its cold storage extension scheme at the Royal Albert Deck. I learn privately that the plans have now been completed, and that tenders will in a few days bo invited. It is calculated that the cold store contemplated for tike northwest corner of the dock will be ready for receiving goods by December, 1914. as well as two thirds of the projected insulated sorting shed's between the stores and the quay. The ground has already been -cleared for this b : g undertaking; my readers will remember that the store is to have a capacity of 250,000 carcases, and the three sortng sheds will he 15C0ft long. Bv the way, I have heard no news of the store the Authority stated it intended to erret over a railway cutting in Charterhouse street, right at the gate of the Central markets. The scheme appears to have fallen through; at least, the acknowledged “ hitch ” seems a permanent one. LONDON CHARGES. The other frozen meat topic, which is very much alive just now in connection with the Port of London Authority, is its sliding scale of charges, which the trade is strenuously opposing. There was a rare scrimmage to propose fresh names for the annual election of members of tkp Authority the other day, which is an indication of several trades being with London charges. Mr William Weddtl, who was already a member, has this time been nominated by a member of the frozen meat trade as well as the wool industry The result of the election is not yet knc.wn. The Incorporated Society of Meat Importers has been proceeding with its opposition to the sliding scale, and from what I hoar 1 gather that the Authority liiei* been thoughtfully considering its portion in this matter. In fact. I hear from a reliable source that it has actually decided to return to a flat rate of charge, though I can obtain no confirmation of this, and mention the rumour with all due reserve. AN AGENTS’ ASSOCIATION. Some little time ago I recorded the proceedings of a small conference of representatives of Now Zealand frozen meat interests, who wore summoned to discuss the question of the preference accorded to Canterbury meat in public contracts, and kindred matters. That meeting was called by Mr W. V. Robinson, the representative of the Associated North Island Freezing Works’ organisation, and it is greatly to the credit of New Zealand exporting interests generally that the outcome of that mooting has actually been the formation in London of i a body designed to watch over the common '

interests of New Zealand frozen meat exporters. In the New Zealand Agents’ Association, of which Mr Robinson has been appointed secretary and treasurer, the first chairman being Mr J. N, Newman, of the National Mortgage and Agency Company, and the vice-chairman Mr Gilbert Anderson, dominion frozen meat producers have for the first time an organisation which can fulfil its task of protecting their interests with three natural advantages; (1) A complete knowledge of the London trade; (2) representation of all the leading New Zealand interests (o) a close proximity to the scene of operations. As Mr Newman himself tells me, the N.Z.A.A. is to be first and last a practical body. It will meet to take definite action on definite questions, and it is “to promote the interests of New Zealand producers, exporters, and importers.” The members ara as follow'; —Gilbert Anderson and Co., Bank of Australasia. Christchurch Meat Go., C.C. __ and D. Co., Dalgety and Co., Gordon,' Woodroft'e, a,nd "Go., James Morrison and Co., National Bank of New Zealand. National Mortgage and Agency Co. of Now Zealand, Bank of New South Wales, Bank of New Zealand, Now Zealand Farmers’ Cooperative Association, Now Zealand Loan and Mercantile Agency Co., Nicoll Bros., N. British and Hawke’s Bay Freezing Companies, W. V. Robinson, R. T. Turnbull and Co.. Union Bank of Australia. William Weddel and Co., Wright, Stephenson, and Co. The address of tho association is Cecil House, Ho!born Viaduct, Loudon. E.C.