THE FROZEN MEAT INDUSTRY.

Star (Christchurch), Issue 5258, 14 May 1895, Page 2

THE FROZEN MEAT INDUSTRY.

The following letter appears in the Otago Daily Times:— The low prices for New Zealand frozen mutton and lamb now ruling in London are causing considerable anxiety and comment amongst all interested throughout the colony. Many explanations are volunteered, and many remedies are suggested, but there is one explanation of the position that has not been Bet before the public. In all previous years, at any rate from 1889 to 1894, there has always been an advanoe in the London market during the months of February to May. Knowing this, London agents this Beason made, daring December and Janu* ory laet, very large contracts for forward delivery extending as far forward as May | shipment. These contracts were in turn | disposed of to the meat distributors, who ; are now, and have been for three months I pact, taking delivery of these shipments, ! costing fully 25 per cent more than the | prices current in London. The only | sufferers at present are farmers who decline ! to aell in New Zealand and participate in j the above contracts. These farmers have ■ shipped to London for sale in the open ; market-, and as the distributors are fully supplied by tbe;e forward contracts there are no buyers for what few lines are for Rftlo except at veiy low prices. From I these facts it will be toen that present prices ruling in London are not a fair criterion of the value of mutton and lamb, and that the present posi'ion is attributable to forward contracts having been j made sufficiently extensive to cover the ' deinacd.