The Taranaki Herald. DAILY EVENING MONDAY, APRIL 26, 1920. THE FROZEN MEAT TRADE.

Taranaki Herald, Volume LXVIII, Issue 16723, 26 April 1920, Page 2

The Taranaki Herald. DAILY EVENING MONDAY, APRIL 26, 1920. THE FROZEN MEAT TRADE.

The outstanding feature of the past year's history of the frozen meat trade wets, in the opinion of VVeddeTs Review, the unlooked for retention of control by the Imperial Government and its employment to maintain prices at an artificially high level instead of reducing them. Consumption as a consequence had fallen off to the extent of thirty per cent, from its pre-war standard, and there were large stocks on hand at the close of the year which could not be marketed for lack of demand. Since this opinion was expressed prices have, been twice reduced, though only slightly, and the people are still labouring under the disability of high prices rather than of short supply. Apparently the authorities consider it necessary to maintain prices of imported frozen meat at a high level in the interests of British farmers, to whom a fresh guarantee was given a few months ago. The masses of the people wonder why they have to pay excessive prices for meat in spite, of an accumulation of supplies _ so great ,that stores are blocked and many ships are hung up in the ports waiting to discharge. The position is no more satisfactory from the New Zealand producers’ point of view. The cold stores here are so full that killing may have to be suspended before the season is over because there are not sufficient ships to carry the meat away. The immediate future is therefore full of uncertainty. All this seems to he due tcT the reluctance of the Imperial Government to “cut its loss” and distribute the meat in its possession among the people who are hungering for it at a price they can afford to pay. No ope can find fault with the Imperial Government for during war time, making contracts for the purchase of meat so that supplies for both the army and the civilian population might be assured. Nor was it any fault of the authorities that the end of the war found them with large stocks and uncompleted contracts. These contracts might have, been cancelled, with compensation if necessary, hut they have been renewed, itiiWould_ seem, as already said, in the interests of British producers. A grave, error of judgment was thus committed; the masses of the public in England are still short of meat, prices are still very high, while producers everywhere are. hampered and perplexed as to the future because of the huge accumulated stocks. Had the Imperial authorities “cut the loss” a year ago the market would have steadied itself by this time. As it is the loss will have yet to be borne, for stocks are still accumulating, and in some cases deteriorating. There is no sign of diminishing production, for the aggregate weight of meat shipped by the world’s freezing works in 1919 was 1,078,000 tons, a little less, it is true, than the 1918 figures, hut substantially more than in previous years—nearly fifty, per cent, more than in 1913. Considering the. shortage of refrigerated tonnage it must be concluded that steady _ expansion of the frozen meat industry As going on and that there need he no fear of any great shortage of supplies iu future. Producers on the other hand need have no anxiety lest consumption _ should fall short of supply, provided of course control is remove's soon. Weddol’s reviewer thinks the outlook is full of menace for the producer, and taking the present statistical position as a guide, it certainly seems to bo so. But he does not allow for the great increase of consumption that will take place when prices are so reduced as to bring meat upon the daily menu of the masses. British consumption has shrunk during the past five years from 720,000 tons annually to about 500,000 tons, .Viewing the

world as a whole there is not apparently a greater increase in the flocks and herds than is commensurate with the growth of population. The greatest menace is the continued control, as limiting’ consumption by maintaining l high prices. The removal of control might cause a temporary disturbance, but the market would soon settle down again and the natural law of supply and demand resume its operation. A matter which concerns New Zealand suppliers greatly is the provision of refrigerated tonnage to carry the meat to the markets. Unsatisfactory as the position has been for a long'time the future is 4 fnll of promise. At the end of last year there were 251 Eritish-ownod refrigerated steamers, with an aggregate capacity of 50,379,183 cubic feet, or about half a million tons of frozen meat. There were building at the same time 51 steamers with an aggregate capacity of 16,885,000 cubic feet. Thus within a few months the tonnage available will be increased by fully a third, so that there should be little or no difficulty in rapidly getting rid of the stocks accumulated in the freezing works and in spreading supplies fairly evenly over the whole year. Indeed there is every prospect of the position that has obtained during the last two or three years being entirely reversed within a year or two, of refrigerated tonnage being in excess of the supply of meat to fill it. Then freights will be reduced and producers will be relieved of one of their chief anxieties.