CONTROL OF MEAT.

Sun (Christchurch), Volume VI, Issue 1810, 2 December 1919, Page 11

CONTROL OF MEAT.

THE IMPERIAL CONTRACT. NO EXTENSION EXPECTED. The announcement by the Imperial Department of Food Control that the removal of control over homegrown and imported meat was contemplated early in 1920 in the United Kingdom has given rise to speculation here regarding the present Imperial contract for the purchase of the Dominion output. This contract expires in June, 1920, and the message referred to is taken as an indication that there will bo no extension of the commandeer. A movement had been on foot in the Dominion to s-ecurc a renewal of the contract, and the Prime Minister (I£t. Hon. W. F. Massey) has agreed to forward the representations to that effect. But, as far as the proprietary meat export companies are concerned, they largely desire a return to pre-War trading "conditions. The commandeer, on the other hand, has suited the farmers' co-operative freezing companies, which have had little competition from the powerful proprietary concerns. These, under normal trading conditions, possess a big advantage in having selling organisations in lingland.

Opinion in the trade appears to be that it is difficult to imagine control being lifted in England and retained here. The present scheme is that meat is bought at a fixed price, and where the export company has selling organisations in the United Kingdom the meat is released through this organisation by the Government, which pays the firm concerned 2 per cent, selling commission. There would be obvious grounds for complaint if there were a fixed price operating here and a free market in London. Even if the Imperial Government were prepared to resell to the exporting firms at the landed cost in London, this might not suit these traders, for the position on the Home market might not warrant the commandeer rates being paid. For these reasons it is considered likely that the Home control will last until the end of the commandeer in June, 1920. It has been urged that it is desirable that an extension of the contract should be made, because much of the Imperial meat will be in store after Juno next. However, according to a representative of one export concern, it is considered that the freight position will be appreciably better next year, and the commencement of the 1921 season should find the stores reasonably clear. The works throughout the Dominion will, roughly, be half-full for the season just commencing. By June there will be little space, if an3 r , but between then and the 1921 season there should be a considerable clearance. As yet it is difficult to speak with any certainty regarding the position, and, in fact, a .recent conference of exporters- has decided, for this reason, to defer any action in the matter. Private advices received are to the effect that there is an undoubted glut of meat on the Homo market. Space there is at a premium, and for this reason many shipments cannot be discharged without long waits. A big reason for this is because prices are too high for the public to pimhaso freely. The trouble is that the Imperial Government is compelled to keep rates up in order to clear itself on dearlypurchased American supplies. Once tnese supplies are worked off," and normal conditions are restored, many in the trade say that it i 3 likely that the New Zealand farmer will receive a lower rate for his stock than at present. But the situation at present is rather indefinite. It is quite likely that the Incorporated Society of Meat Importers will evolve some scheme of trade control in order to keep the distribution of supplies in British hands as far as possible. Certainly, it is stated, British companies will work together to a much greater extent than they did before the War.