MEAT INDUSTRY

Southland Times, Issue 21820, 24 September 1932, Page 6

MEAT INDUSTRY

EXPORT CHARGES CONCERTED ATTACK ON COSTS FARMERS’ DISCUSSION Further reference to the efforts of the meat producers to secure a reduction in charges in the export of meat, these charges, it is alleged, now swallowing up the greater part of the realizations on meat, was made at yesterday’s meeting of the Southland executive of the Farmers’ Union. An interesting report was read by Mr E. Sim, one of the Southland delegates to the Electoral Committee of the Meat Board, which held its annual meeting recently. , - Mr Sim said: “As arranged a meeting of representatives of mercantile companies, freezing companies, and the Farmers’ Union, met the southern members of the Electoral Committee, with the exception of Mr A. S. Holms, who was unable to be present, on Monday prior to proceeding to Wellington to the annual meeting of the Meat Board. Despite a cordial invitation to attend, the freezing interests did not send a representative, which was regretted, and was, I believe, a diplomatic error on their part. Matters of general interest in connection with the industry were discussed, and several resolutions were submitted to a meeting of Otago and Southland representatives in Dunedin on Monday evening. Those present were:—Messrs M. A. Kinney (in the chair), J. Clarke, J. Miller, W. Lee, D. McGregor Reid; and J. D. Revie, representing the Otago Provincial Council, and H. Smith, D. Marshall and E. K. Sim representing the Southland provincial executive. At the conclusion of the meeting several of those present expressed their approval of the usefulness of such combined conferences and hoped that in future regular meetings would be arranged.

“The following questions were considered and delegates of the Electoral Committee were requested to submit them for consideration at the annual meeting of the Meat Board: —(1) Disparity between North and South Island freezing charges. (2) Rebate on railage charges of frozen meat from the freezing works to the ports. (3) Railway freights on live stock. (4) Reduction in freezing works employees’ award. (5) The necessity of passing on all reductions in labour costs. (6) Retail and wholesale prices in the United Kingdom. (7) Damage to carcasses en route to markets. (8) Handling charges on wool, etc. . going through stores. (9) Establishing of new markets in the east and elsewhere. Electoral Committee Meeting. “The Electoral Committee met on August 31, in Wellington, and at the outset a lengthy discussion took place about the advisability of the Electoral Committee having a day prior to the election of new members to consider matters affecting the industry with a view to getting their ideas into concrete form for presentation to the board, and to the candidates. The chairman ruled that this could not be done this year, but a resolution that arrangements be made for such a meeting next year was carried. The board agreed to give full consideration to the question .of transferring the concession on freight from the works to the port to from the railway station and sidings to the works. Mr Begg expressed the opinion that it was not advisable to interfere with existing conditions, but to press for a further reduction in general freights. Freights had gone up 50 per cent, since 1913 notwithstanding an abnormal increase in the volume of stock and frozen meat. A resolution that the levy be not collected this year was lost by a substantial majority. “The abnormal killings this year made the arranging of shipping facilities difficult, but no serious hold-up was experienced and a careful watch is to be kept on this matter in the coming season. Mr Jessup said there was considerable scope for reductions in cold storage charges in K ix>ndon. Charges commence immediately half a dozen carcasses enter the store, and after 28 days if the next period of 28 days is broken charges are paid on the full period. Attacking All Costs. “A prolonged and vigorous discussion took place, and great pressure was put forward for the necessity of attacking all costs in connection with the industry. The acting chairman, Mr Duncan, said that the matter of attacking internal costs was a delicate one, but a promise was given that the board would associate itself with the Sheep Owners’ Association and the Farmers’ Union with a view to making a concerted attack on all costs, and to have all reductions passed on. Mr Acland, president of the Sheep-Owners’ Association, whom I interviewed, is in entire accord with such an effort, and I have written personally to Mr Polson. In the past, there has been a lack of co-ordination in this respect, but it is to be hoped that more concerted action and a more vigorous effort will be made in the future. “There is some difference of opinion on the question of quotas and preferences in the board, but as the actual arrangements made at Ottawa are not yet known, it is difficult to form any definite opinion on this matter. “The question of establishing a market for our meat in the East so far has not met with success, and the tariff wall in the United States and other continents has effectively shut us out there. The British Chamber of Commerce is arranging an exhibition in Hong Kong. The New Zealand Government is sending representatives there to take charge of exhibits and the Meat Board will co-operate and make a further effort to establish a market for our meat. “The matter of freezing costs etc. is more or less a provincial question, and I have drafted a letter to be submitted for your consideration to the local companies. Grave concern for the future of the meat industry is being felt, and was expressed by delegates all over the Dominion. The fact that such a large quantity of old ewe and inferior mutton has been exported and that the reduced purchasing power of overseas companies has compelled them to purchase the cheap article has had the effect of reducing the consumption of our better class of meat. There has also been since 1929 a 43. per cent, increase in exports into Britain of bacon and pork. This, along with increases in exports from other meat producing countries, has created an over-supply, which together with the economic situation presents a very serious problem.” Mr H. Smith, who was also a delegate to the Electoral Committee, said that during the past season the prices of meat had fallen to the lowest level in years. The quantity exported had increased enormously, but there were now more old ewes about the country than ever before which meant that the sheep flocks of the Dominion would take many years to build up again. The board had advised the Electoral Committee that negotiations with the Railways Board for a reduction in freights had not been fruitful and it now devolved on the provinces to make representations with that end in view. Letter to Freezing Companies. Mr Sim submitted the following draft letter which was approved to fee fc®-

warded to the local freezing companies:—

“There is hardly any necessity to draw your attention to the deplorable state of the meat industry and to the heavy losses suffered by producers through the abnormally low prices. We realize that you, as exporters, will also make a loss this year on your buying. While we appreciate fully the facilities your works have provided for your clients who wish to consign on their own account and also for the improvement in quality and preparation of Southland brands with a consequent rise in prices comparatively with other provinces and that Southland lamb is second to none in New Zealand, we feel bound to seek your assistance and consideration in getting all operating costs down very considerably and passed on to the producer of the product. While we realize that your first duty as directors is to your shareholders, we feel that they should not expect to receive the same profit on their investments as was received when there was no unemployment. To-day the producer of frozen meat is not only making no profit but is suffering a heavy loss and most business people are in the same position. We know that much of the too high cost of expox-ting is not under your control, but we respectfully ask you to review what is within your sphere and to assist us to the utmost limit.”