THE SLUMP IN MEAT

Otago Witness, Issue 3495, 8 March 1921, Page 14

THE SLUMP IN MEAT

A GLOOMY REVIEW. WANGANUI, March 1. Farmers are now very mucn concerned over the collapse of the meat market, and in following up the proposal of an arrangepient between the Government and the freezing companies regarding the storage in Now Zealand of the new season’s meat. Mr W. J. Poison, the Wellington provincial president of the Farmers’ Union, suys that America is at present using Great Britain as a jumping-ground. This meat was bought in New Zealand, and from other quarters, and they were unable to dispose of it. Eight hundred and fifty thousand Carcases of New Zealand lamb had been dumped into Britain from New Zealand last week, and a good deal of meat was

being returned to the si ores from France, which it was hoped to have disposed of there. On top of that, there was a good deal of Imperial meat in New Zealand, and that was holding up the shipment of free meat. The congestion of meat at Home, coupled with a good deal of inferior meat, had upset, the market. The rapid fall in prices was also most disconcerting. A few days ago wether meat was 6|d to sd, one firm doing business with Vestey and Co., who might bo presumed to have their finger on the pulse of the market, fixed the price of wether meat at 4jd. The next day information came to hand which caused the company to fix the price at 3j}d to 4d. Further information came, and the price fell to 3d. At present prices were:— Wether, 3d; ewes, 2d; lamb, about 6Jd to 7d. Beef was unquotable, as there were no buyers. A little wfiile ago cow beef was quoted at £l.

The position was most 6erious. It meant a curtailment of income, and that v>as serious from the dominion’s point of view, because the balance of trade was strongly against New Zealand, and on account of the low prices it was going to bo more strongly against her. As a result of the tremendous fall in meat and its by-products, the banks had just been able to make ends meet.. Four or five millions of difference in tho balance of trade would mean the dislocation of business and the appallng consequences of a land slide. lie did not think that it would be allowed to get so far as that, arid hoi estly thought we had struck iiottom, and would shortly see a recovery, but to obtain that it would be necessary he considered, for tho Government to assist the freezing companies in some way or other as already suggested. The shipment of Imperial meat obviously curtailed shipping space, arid the Imperial

Government was not anxious to remove it rapidly. The freezing companies made their sales o.lff. The practice was to test the market in London by selling a few thousand carcases, which set the price, and the companies bought in conformity with prices that would pay them. Under the existing circumstances they were unable to tell Eondon when they could get shipment. Therefore, the contracts made could not bo fulfilled, because ships were not available, and that meant that they were cancelled. Some companies were finding themselves in a mess, with contracts cancelled and meat slumped 100 per cent. .M r Poison was opinion that the situa.tion was bound to be prolonged, if meat went Home in conjunction with Imperial meat, which was older and damaged. It would be used to “flog the market,” and to keep prices down. If they could get rid of it and have a free market for their own meat, prices would come bock. Unless they could make some arrangements by which freezing companies could do that, he did not anticipate much success. Such arrangements could be made only by the Government. Mr Poison maintained that the main trouble was the grossly unfair attitude of the Imperial Government in putting up the price of shipping 5 per cent. It had promised to irduce the price to a shipper 5 per cent., but instead had put it up 5 p.er cent—a difference of 10 per cent.., or id to id per lb. A recent cable stated that there was much more shipping to-day than before the war, and ships were tied up all over the world ; yet the farmers had to pay more to get their meat Home, because of the Imperial Government controlling the shipping. Wether pelts were worth about 30s per dozen, but the total charges were 16s a dozen. The freight alone tvas about 5s 6d or 5s 7d. Mr Poison is of opinion that the best plan would be to hold the meat until the Imperial meat was cleared. Vesteys did not mind what freights went to, as they had their own line of steamers. The whole business at the other end was wrapped in mystery, and filled New Zealand farmers with suspicion. He had read in a Home article that the colonies were putting up with conditions which caused the Americans to get their independence. It was not fair treatment for New Zealand after her share in the war. There should have been some protection from American lamb and stale meat, which had been in foreign hands, and they should have seen that New Zealand was not left, in the lurch after her sacrifices in the war. It was such a serious situation, and fraught with such disastrous consequences, that they had to seek some avenue of escape. The Government had assisted w-ith the butter, and should assist in a matter that was more important. As soon as the arrangement with the Imperial Government was over, butter would drop 6d a pound. Wool was practically worthless, and most farmers -would be faced with a huge deficit next year. PRICES COMPARED. WELLINGTON, March 2. The present meat prices per pound in the Wellington and Taranaki district, which, however, are subiect to reduction, compare as follows w ith the prices paid by the Imperial Government last year:—Ox beef—Today 4-d, last year 5d ; cow beef —to-day 2Jd, last year 4Ja; lamb—to-day 7d, last year 6d; prime wethers—to-day 4d, last year s|d; first quality ewes —to-day 3d, last year 4£d. THE BUTCHERS’ SIDE. A Times reporter who made inquiries last week into the retail price of meat found the butchers all reporting a general decrease of ljd to 2d a lb since the beginning of the ;y»ar. The butchers, it may be explained, are free to charge whatever ginning of the year. Below are given current retail prices as compared with those about the beginning of the year. It will be seen that they show_ a general decrease of to 2d a in on ail classes of meat. The figures were supplied by a butcher who has been in business for Dunedin for many years, and whose shop and prices may be taken as typical of the better-class butchers.

Though sausage and mines prices have been quoted above, they are only approximately correct, as all small goods vary a great deal in quality, according to how the butcher makes them up. Every housewife will be able to bear out the truth ol this statement. The butcher whose prices are quoted above gave it as his opinion that consumers are at present getting a fair advantage of the decline in the stock market. He pointed out that while tho market is down, everything else that tho butcher uses is up. “Since last August,” he said, “we have had to hold our hides, because we cannot ship them and nobddy wants to buy them. When the commandeer ceased on September 30, wo could not sell our skins, except at a greatly reduced price, and we have been obliged to hold o*er tremendous quantities. There are large quantities on hand now. lor tallow we got £lO5 a ton nine months ago; now we got £35. My sheepskins do not now realise sufficient to pay my killing expenses. Before the skins and offal used to pay rny expenses for killing, inspection, and carting, and I used to receive a respectable surplus as well. It is not only the loss on the by-pro-ducts, however, that seems to be keeping up the price of meat, but the greatly increased cost of running the business. The butcher who was interviewed stated that whereas the highest wage he paid six years ago wag £2 11s, and 5s worth of meat, the lowest wage he pays to-day is £4 12s 6d. “And they need it,” he admitted. Salt, which he used to get for £3 10s or _£4, now costs him £lO 10s, and for twine, which was lid a lb, he now pays ss. Brown paper has gone up from 2ld to 9jd a lb, and white paper from 2d to 7d. The butchers will not risk forecasting future prices in the unsettled state of the market. “But if there is a further drop,” the trader said, “tho public will certainly get the benefit oi it.”

Current price. Old price. Mutton, leg ... 7d to 8d 9id to lid Mutton, forequarter 4£d to 5d 7d to 7jd Chops 7d to 9d 9d to lOd Steak, stewing ... 7d to £d lOd Steak, rump ... lOd Is Corned roil ... 8jd lOd Corned round ... 9J.ti nd, Hid Roasting beef, prime rib 8^1 9id Roasting beef, sirloin 9id 10id Roasting beef, boiling 5id 7d Sausages 5d 7d Mince 5d, 6d 7d