BRITISH MEAT SUPPLIES

Otago Witness, Issue 3442, 2 March 1920, Page 14

BRITISH MEAT SUPPLIES

PRODUCTION IN THE DOMINIONS. FUTURE PLANS. REPORT OF BOARD OF TRADE COMMITTEE. IMPORTANT RECOMMENDATIONS. Writing under date December 24 the London correspondent df the Melbourne Age says-: —There are some matters which aro of "considerable interest to tho Australian meat export trade iri .the report of the committee appointed by the Board of Trade "to consider and report on the means of securing sufficient meat supplies for the United Kingdom at reasonable prices, with special regard to the development of meat production in the United Kingdom and in the British overseas dominions, and to the protection of British markets and of producing countries within the Empire from domination by foreign organisations." Before the war the yearly consumption of beef, veal, mutton, and lamb in the United Kingdom was about 1,811,000 tons, of which 60 per cent, was -raised in the United Kingdom and 40 per cent, imported. During the war there was a considerable reduction in meat supplies, both home-grown and imported, and for two years a system of rationing consumers (which was not abolished until a few days ago> was enforced in Great Britain. The rationing system materially reduced consumption, and compelled the people to alter their diet, and find substitutes for meat. But the committee do not anticipate that the fact that the people have become accustomed to eat les? meat than formerly will affect the aggregate consumption in future years, as the higher wages which the working classes are receiving will probably result in their eating more meat than they did before the war. MEAT EXPORTING COUNTRIES. Concerning the supplies of meat which are likely to be available in foreign countries, the report states: "South America is the great present source of meat supply. In the Argentine Republic there are about 29,000,000 cattle <tho number having remained almost stationary during the war), and between 50,000,000 and 60,000,000 sheep; about 45 per cent, of the cattle arc native. Uruguay has about 8,000,000 cattle and about 11,000,000 sheep. Chilian Patagonia has about 4,000,000 sheep. Brazil has an unknown number of cattle, usually estimated at about 30,000,000, but the great majority of them are not suitable for the British market, though the meat like that of Uruguay, is acceptable in Continental markets. Venezuela has during the war exported frozen meat to France, and Columbia, though at present undeveloped, offers the possibility of a trade of moderate dimensions. The American meat companies have also begun to develop Paraguay. Central America has a large number of wild and semi-wild cattle, but the possibilities of an export trade are very uncertain for a long time. China (Yangtse Valley and Manchuria) has cattle of fair quality, and has done an export trade to France and Italy. Madagascar has also a. freezing works, from, which moderate quantities have been exported to France. The effective meat-exporting capacity of those foreign countries- which

need to be take.i into consideration at present is as follows, including output from works now under construction:

MEAT IMPORTING COUNTRIES.. In summarising- the world's supply and demand the committee states: "On the assumption that sufficient shipping were available the meat capacity of the supplying countries in the immediate future would be about 1.400,000 tons a year, of which about 330,000 tons would be mutton. The requirements of the United Kingdom for imported meat may be taken at 750,000 tons a year, those of France at 250,000 tons, those of Italy at 150,000 tons, those of Belgium at 50,000 tons, and those of the United States at 150,000 tons—or 1,360,000 tons A year in all. This total exceeds the present carrying capacity of the world's insulated ships, even assuming a normal rate of loading and discharge, and, though in a couple of years' time there will apparently lie a surplus of shipping space for the supply of new demands, it cannot be realised to the full if the present rate of handling ships 19 continued The French, Belgian, and Italian .requirements cannot be met in full to-day except with the assistance of British and American tonnage, and then no steamers will be left for the supply of other Continental countries. On the other hand, it is not unreasonable to expect that British shipowners will make a further effort to cope with the demands for insulated tonnage. "The consumption of chilled beef at the expense of frozen beef •was progressing rapidly before the war, and unless and until chilled beef can bo brought from the Antipodes Australasian frozen beef will bs at a disadvantage in British markets compared with Argentine chilled beef. Beef from Brazil and Uruguay, and mutton from the Argentine and Patagonia are best suited for Continental markets, and the more highly-priced Australian and New Zealand mutton and lamb will tend to exclude foreign mutton and lamb from the markets of the United Kingdom. Meat will, in fact, lend to be distributed in the future as in the oast accordinjr to its quality and price and the taste of the consumer. Before, the war about one-third of the beef and veal consumed in the United Kingdom came from foreign countries, and this proportion can mainlv be reduced by an increase of our home-grown supplies. On the other hand only 12 per cent, of the mutton and lamb' oame from outside the Empire, and the tendency is that this will dimmish. GOVERNMENT CONTROL OF EMPIRE SUPPLIES. Reference is made in the report to a proposal to extend for a period of five years the Imperial Government s contracts with the Australian and New Zealand Government's made during the war, to purchase all their exportable surplus meat, "so that producers might come safely through a time when trading would be uncertain, and be encouraged to expand their production pending the restoration of normal conditions." The report continues: " Some of the witnesses -who appeared before us even proposed that all importation of meat should be conducted permanently under Government; control. Huch plans could only be carried into effect with the co-operation of the dominion Governments, and so far not one of them has: shown any desire to engage m such farreaching operations, although any terms which might he agreed would guarantee an assured market and a reasonable profit to the producers and the freezing works. Ihe New Zealand Government is the only one which has asked .for any extension, and that a limited one, of the original contracts. The Government of Queensland is understood to be willing to sell to the Imperial Government surplus cattle from the Government stations on favourable terms, but. such a sale would, of course, represent only-a very small part of the output of the State " The Government of Victoria has cabled:—" Government here,, having consulted all producing interests, consider the b°st method of increasing meat production will be open market immediately on termination of present contract with Imperial Government, three months date after termination of war, provided insulated space guaranteed equal what .would be provided if contract extended for period of Imperial Government control shipping. Failing open market with full shipping facilities, Government consider that any extended contract should provide prices in harmony with retail rate prevailing in United Kingdom, and with prices being received m America and other sources of supply. Broadly speaking, Victoria coidd greatly increase meat exports it prio3s enabled producers to pay cost of cultivating fodder crops." The Victorian _ Government _is clearly apprehensive of diversion of. ships, and only contemplates the desirability of renewing the contract for the New Zealand term of three months. The importing houses in London,, many of whom possess freezing works in Australia and New Zealand, are all opposed to the continuance of Government purchase. The opinion was also expressed that the purchase of dominion meat' while foreign companies were left free in their trading would * ba hurtful to Imperial interests. In the absence of any evidence that the maintenance of these contracts would be welcomed in the dominions, we have not thought it advisable to proceed further with the consideration of this plan. The report also refers to a proposal of the Incorporated Society of Meat Importers, composed of firms dealing with meat imports from Australia and New Zealand. These importers are impressed with; the idea that, in view of the great demand for meat in other parts or the world, supplies may be diverted from the United Kingdom on the termination of the existing system of purchase by the British Government from the oversea dominions.They suggest that contracts should bo entered into with the freezing works in the dominion under which a minimum of 80 per cent, of the New Zealand output of meat from these works, 75 per cent, of the Australian output, and 70 per cent,; of the Canadian and South African output

should be sent to the United Kingdom in return for a premium of id per lb on the total quantity shipped by British firms from Empire sources and consigned to members of an association of British meat importers. But the committee did not take a favourable view of this proposal, though they reoommend that it should bo taken into consideration "when the question of tariffs, bounties, and subsidies is being considered in connection with the general trade policy of Great Britain. AUSTRALIAN MUTTON AMD LAMB. "We are impressed," state the committee, '"by the way in which production in the' dominions has developed without any artificial stimulus. The real problems are those of. improving quality, extirpating disease and providing against the risk of 'drought, and these can only be dealt with locally, and not from the United Kingdom. As far as regards beef, the future lies with the chilled variety, and the prospect oi bringing it from Australia and New Zealand continues to be remote, but the possibilities of development of trade from Canada and South Africa were laid before us by' witnesses. As far as Austraha (except Queensland) and New Zealand are concerned, the future lies with the production of "mutton and lamb, and the development in the recent past ha 3 been continuous and vigorous. The demand in the United Kingdom is increasing, and the of developing new markets in the United States and on the Continent of Europe are bright. • The Imperial Government may usefully help by diplomatic action in securing the removal of unjustifiable restrictions on importations and in obtaining for the dominions a fair share of the European and American trade. "Moat from Australasia 'is brought to this country in ships carrying not meat only, but also other produce, for which the best market has hitherto been the United Kingdom. The possibilities of economically diverting such steamers (including the obtaining of profitable return eaagoes) is limited, and the greater _ problem is more likely to be the obtaining of ships for the dereloprnent of the new markets for meat. These considerations appear to make it certain that a large proportion of Australasian meat will always come to the United Kingdom; but in any case, if the United Kingdom wishes to obtain its share of the world's meat supplies, it must be prepared to pay the -world's price." In their recommendations regarding the production of meat in the oversea dominions the committee state: "We regard the control or supervision of meat production in tie dominion as a matter for them alone, but in order to ensure unity of action by the several Governments we advise that there should be frequent inter-communica-tion on this subject by conference or otherwise. As an example of action in regard to which general consideration might be desirable we would refer to the recent New Zealand Act for the licensing of meat exporters. Meat production in the dominions may be expected to continue to progress rapidly, and the existence of a ready market in' the U mte - d Kingdom for the bulk of their exports is the best guarantee of such, development. Some further aid can, however, be given by assisting them to secure new markets. (a) We recommend that diplomatic action be taken to obtain the removal of all unjustifiable restrictions on the importation of dominion meat into foreign countries, including the surtaxe d'entrepot on meat transhipped from the United Kingdom. Further, if any action is to be taken for the feeding of the countries ravaged by the war, we consider that every effort should be made to secure a share of the trade for the dominions. (b) We also recommend lhat Government contracts for meat should be confined to British producers in the United Kingdom and in th 9 dominions."

CHECKMATING THE MEAT TRUST'. In regard to "chocking practices in the meat trade, whether by trusts-or otherwise, ■which are inimical to the public interest, the committee statefs:—"Various schemes have been put before us aiming at the exercise of a certain amount of control and supervision of the meat trade, so as to provide a ready means of intervention to check practices detrimental to the public interest. After careful consideration of those schemes we make the following recommendation*): (a) Statutory Licenses. All persons who import or deal in cattle, sheep, beef, veal mutton, or lamb in the ordinary course of their trod« should be required by statute to hold a license from the proper authority. Farmers dealing in stock in the ordinary course of farming operations should be exempted from the necessity of obtaining a license, (b) Conditions of Licenses: An applicant for a license should be required to furnish such information relating to the ownership of his business and other matters as- may be prescribed. Subject to. the prescribed information being duly furnished, the license should be issued to the applicant as of course, except where it appears

that a case for revocation of the license v/ould immediately arise on its issue. "The conditions to be attached to licenses should be fixed by the licensing authority, and in the case of importers might include a limitation of the quantities of meat to be imported within required periods. In general, these conditions should require:—All licensees to furnish at all times such information concerning the operations of their business as may be required, and to give reasonable facilities for the examination of books and other documents relating to- their business. All licensees who are importers to furnish in the required detail periodical returns as to their past and expected receipts of meat, (o) Meat Department: The Board of Trade or such other department as the Government may select should set up a meat department by two consultative committees —(a) consisting of representatives of the British interests in the meat trade, including producers and consumers, and (b) consisting of representatives of the owners of British insulated ships. The duties of the department should comprise the issue, suspension and cancellation of licensee, subject to an appeal to a court of law; the consideration of alleged cases of unfair trading and other complaints; the supervision of works leased by the Government, and any other duties that may from time to time be assigned to it. The meat department should be empowered to exempt certain classes of traders (in particular small butchers and hawkers) from the necessity of obtaining or holding a license, and should discriminate between different classes in the information to be required and the conditions to be attached to licenses."

Beef. Mutton. Tons. Tons. Argentine and Uruguay 600,000 70,000 Patagonia (Argentina and Chile) .— 30,000 Brazil ... .. 250,000 — Venezuela 8,000 — Paraguay ..» ... 5,000 — Madagascar 8,000 — 871,000 100,000 The report gives the following totalis aa the probable v earlysurplus meat available for export from the overseas dominions for the next few years : Beef. Tons. Mutton. 'Cons. Canada 25,000 —! Australia: , 120,000 70,000 New Zealand 40,000 160,000 South Africa .. 25,000 — ' 210,000 230,000