LIMITS ON MEAT

Taranaki Daily News, 10 November 1932, Page 5

LIMITS ON MEAT

CRISIS IN THE INDUSTRY i -- ' S. AMERICAN AGREEMENT RESTRICTION ONLY HOPE RESPONSE IN THE MARKETS PRICES RISE HALF-PENNY British Wireless. Rugby, Nov. 8. Announcing the Government’s emergency proposals for the restriction of meat imports, Mr. W. E. Elliot, Minister of Agriculture, in the House of Commons said the Government had been deeply impressed by the desperate straits of the farming industry. He emphasised the importance of agriculture as an employing and a wealthproducing industry, and the national recognition of,the need for saving agriculture. He explained the smooth acceptance of what amounted to a fiscal revolution. If agricultural prices were good people and capital would flock to the land.

The problem of industry was that of price level. In recognition of this the Government began with the wheat quota and horticultural duty, and was continuing other steps to help other branches of the industry. Meat had been reserved until after the Ottawa Conference, but the conditions in the live stock industry had rapidly become worse and emergency measures were necessary to limit supplies which from all sources must be restricted. That meant proceeding by negotiations with all foreign countries with which Britain made or hoped to make commercial agreements. The arrangements for the restrictions, ho said, were to run experimentally for the next two months and ought to put a bottom into the meat market. Mr. S. M. Bruce spent the greater part of the day conferring with meat interests here. Mr. R. S. Forsyth, representative of the New Zealand Meat Producers’ Board, is co-operating. "DUE TO OVER-PRODUCTION.” •Mr. Neville Chamberlain (Chancellor of the Exchequer) said the calamitous drop of commodity prices was due to over-production. The efforts to restrict the quantities of coffee, wheat and rubber marketed had failed because they did not go back far enough to restrict production. The only successful restriction scheme was that for tin, because it curtailed the actual production. Therefore only through the restriction of the actual production of meat would wholesale prices ba, raised. There was no need for undue pessimism at the present position because there were signs in many quarters that the effects of the past year’s measures were beginning to show themselves.

Though forward selling improved by the Ottawa agreement’s limit on imports; Smithfield market was thrown into an erratic condition, owing to the uncertainty of how stocks in cold storage are to be handled. These, as Mr. Elliot hinted, may prove a more difficult problem than the new imports. Tho present stock in cold store include 750,000 earcases of New Zealand sheep, 350,000 carcases of Australian and a smaller quantity of Patagonian. It is expected that the agreements will improve prices for Australian shipments arriving in December and January, usually Australia’s worst months. After the early uncertainty prices for mutton and lamb at Smithfield rose Jd. all round. Australian and New Zealand importers are forming a committee to study the restrictions and their effect on the market in order to avoid undue disorganisation. “Voluntary meat restrictions are the sole practicable method of dealing with the crisis in the British livestock industry,” says .the Daily Telegraph. “The banks can noy extend credits to farmers. The Government’s action is not without risk in the possibility of a price reaction greater than was planned, but urgent action was essential in order to rescue agriculture in the greatest crisis it has ever faced.” NEW ZEALAND’S EXPORT A TEN PER CENT REDUCTION. BETTER PRICES ANTICIPATED. By Telegraph.—Press Association. Wellington, November 9. “The action .that is. being taken .by the British Government with the object of immediately reducing meat supplies is evidence of the serious position of the United Kingdom meat market,” said the Rt. Hon. J. G. Coates this morning. “It is a drastic action, and it* affects New Zealand. The curtailment of supplies for the months of November and December is a matter which is outside the Ottawa agreement, under the terms of which the regulation of foreign supplies of meat entering the United Kingdom is to be made effective for five years, commencing January, 193-3. “After consultation with the meat producers the Government is able to indicate that the New Zealand shipments of frozen mutton and lamb for the two final months of this year will not exceed the quantity now stipulated by the United Kingdom Government, that is. 10 per cent, below the quantities for the corresponding period last year.” Against this, he said, there should be an improvement in the present prices. The Ottawa agreement was not affected by the action which had been taken. He denied the impression that some new authority- for regulating supplies had been conferred on the United Kingdom by the Ottawa agreement. He said that the meat position was being carefully and constantly watched, and he gave an assurance that nothing was being overlooked which could be helpful i to New Zealand producers.

IVI'R. JONES ALLAYS FEARS IMPROVEMENT IN MARKET. EFFECT ON FOLLOWING YEAR. (By Wire —Special to News.) Wellington, Last Night. Fears concerning the restriction of New Zealand’s exports of muttou and lamb by 10 per cent, during November and December were allayed by the chairman of the Meat Board, Mr. David

Jones, in an interview to-night. He expressed the opinion that the, curtailment of supplies should have the effect of materially improving market conditions next year. . “Apparently some people are disturbed at the thought of such a restriction being imposed on the Dominion during November and December of this year,” said Mr. Jones. "We have to remember, however, that the concession we make is trifling compared with the reduction imposed on imports from foreign sources. Further, there will be a material nett gain to the Dominion through the improvement in prices that has already taken place and is in prospect for the future.

“It will be recalled that the recommendation of the Pig Commission in Britain was that a restriction of bacon and similar supplies should be enforced from June 30 next year. The decision of the Government to introduce this restriction almost immediately, although the amount of the restriction has not been indicated, will materially assist the market, particularly when we remember that' imports of chilled beef, which were restricted only to an amount at a given period, are now subject to a 10 per cent, reduction also.” Mr. Jones added that unless some drastic action had been taken, to judge by the prices in prospect, a considerable portion of New Zealand’s lowerpriced meats would not have realised enough to cover the cost of shipment. This would have been a matter of serious concern, both for the sheep and the dairy farmer. “Many people will be wondering what will be the effect on the British consumer of this attempt to increase the level of prices,” said Mr. Jones. “Retail prices of lamb, and more particularly mutton, are still such that they will not be affected to any noticeable degree by increases in wholesale prices.” Mr. Jones concluded by saying that other questions concerned in the restriction of supplies had been well covered by the statement of Mr. Coates, with which ho fully concurred. r