THE BEEF MARKET.

Waipa Post, Volume XX, Issue 1243, 16 May 1922, Page 2

THE BEEF MARKET.

LOWER FREIGHTS NEEDED,

One of the best-known beef stock raisers on the coast informed a Levin Chronicle representative that the price ruling for butchers' beef for some time past was no encouragement to breeders to carry on the business and continue breeding steers. This year, he considered, there would be few bull calves saved, and that next year there

was bound to be a shortage in young steers. In this way the dairymen could assist in regulating the beef supplies. Without doubt the slack state of our export beef trade was affecting the local market, and it did not look as if we could compete successfully with South America in the export business unless we had some concessions in the way of lower freight rates. We were nearly twice as far from, the Home market as .South America, and the latter country had big advantages of direct, quick transit, which landed her produce in the very best of condition. However, South

America was giving some attention to dairying, and if that business increased it would ease the competition in the beef market at iHome, which would he a benefit to the beef-raisers in this country. In the meantime breeders simply had to .ease off until the surplus stock was absorbed, when there might be a reasonable prospect of better prices than those now prevailing. The low price ruling in London for beef is said to be largely due to the cut-throat competition of firms interested in the Argentine meat trade. Whether they can afford to go on with

suuii uestrucuve competition remains to be seen, but so far the losses sustained by the competitors have been exceptionally heavy. Thus the famous firm of Armour and Co., of Chicago, which has close connection with New Zealand, in its report for 1921 affirms that the year just passed has been " the most disastrous in our 'business history, as well as in the packing industry generally." The loss on the year's working is stated to have been over £6,000,000. The company paid no dividend on its common stock, but met that on the deferred stock, and having previously accumulated large

reserves began 1922 with reserves aggregating ©12,000,000. A significant statement by Mr J. Ogden Armour, when commenting on these results, is that " never before has the utter helplessness of the packers to fix prices or control markets been so completely demonstrated."