THE MEAT MARKET

Waipa Post, Volume XXIV, Issue 1574, 15 November 1924, Page 4

THE MEAT MARKET

WORLDS POSITION REVIEWED.

FAVOURABLE PROSPECTS IN NEW ZEALAND.

A POLICY OF CAUTION ADVISED,

" Trade prospects in Europe .seem to be steadily improving, and, stth a stable settlement of the pomical situation in. Great Britain and the settlement of the standing dispute of the reparation question with Germany, it may reasonably be hoped that trade will revive and return to normal channels."

Such was the opinion expressed by the acting-chairman of the Wellington Meat Export Company, Limited (Mr J. W. Marshall, of Marton), in reviewing the general position of the fr zen meat industry at the annual meeting of the company in Wellington on Thursday. "It is satisfactory to find," said Mr Marshall, " that the export of meat from New Zealand is well maintained. In the period from Ist October, 1923, to 30th September, 1924, there was a decrease of 78,800 carcases of mutton, but a substantial increase of 242,000 carcases of lamb. Beef again dropped in volume, only 260.000 quarters being exported: : In the same perfod Australia sent away 583,000 quarters, and South America the huge total of 6,500,000 quarters. Though a great deal of the South American beef goes to the Continent, the large quantity of chilled and frozen South American beef put on the Smithfield market depressed prices to a very low level. At one time South American fores were selling for lid to 2d at- Smithfield.

" The export of mutton and lamb from Australia fell off to a remarkable extent. In the season 1922-1923 Australia exported 1,753,000 carcases of mutton. In 1923-1924 AustraKa exported only 176,000 carcases —say, a tenth of the previous year. The export of lamb also fell off from 2,636,000 carcases to 1,047,000 carcases in the last season The reasons for the large decreases are probably two-fold—-the unfavourable season; secondly, the great rise in the price of wool, making it profitable to nold wethers for their fleeces and tjhe ewles for breeding, which when"wool was low were killed for export. As the rainfall in Austra-" lia has been good this spring, an increase in the export of lamb may be looked for. In mutton, for the above reasons, no great increase 'is likely. South America also showed a decrease in the export of lamb from 2,428,000 carcases to 2,118,000 carcases, and from 2.900,000- caTCai.es of mutton to

2,173,000 carcases in 1923-1924. Favourable Prospects in New Zealand. " In New Zealand the prospects for the coming season are favourable to an increase in both mutton and lamb. The winter was mild, and sheep came througth in good condition, and wit.l little loss, hoggets doing exceptionally well. The spring growth was early,, and grass is abundant throughout the-Napier-Wellington districts, which ha% caused a decided rise in store stock, farmers being anxious to buy to keep down the grass. The lambing is supposed to be below the average, but under the favourable weather conditions v. good crop of early milk lambs is expected. An encouraging feature is the steady increase in -numbers of ( our flocks, whiicih have risen tfrom • 22 250,000 in 1922 to 23,775,776 in the return for September, 1924, an 'increase of 1,355,417 in two years. Of the increase of this year of 694,387 no less than 669,354 is in the North Island But we are still much below the maximum number of 26,250,000 m Prospects on English Market.

" The purchasing power of the pie of Great Britain is so largely dependent on the commercial prosperity of the country," continued the act-ing-chairman, "tihat given favourable condatlions there should be a good market for our meat in the coming season. The market for lamb appears to range between lOd and 12d. A rise above a shilling checks the demand. In the past season no doubt the demand for lamb was stimulated by the large influx of .visitors to the Wembley Exhibition. This year it is hoped that the market will be .stimulated by tine solid condition of improved trade and lessened unemployment. In mutton the price has ranged between 6d and Bd, and that is also checked when the price rises above 8d Though there is always a demand for light-weight mutton, thd heavier weights and second grade lhave been difficult to sell on a sluggish market. The wool market continues very firm, with a rising tendency. ■ It will not be surprising if the prices obtained last year are exceeded in the coming season. The first sale of the season in Wellington is fixed for 17th November, when some indication of buyers' ideas of value will be watched with interest.

Meat Business Highly Speculative. " When prices are on a high level there is always a risk of a more or less sudden fall from unforeseen or unexpected cause or causes, such as an increase of exports from other countries. The present policy of pro-i ducers should be one of caution in forward purchases of stock, and not to run undue risks on an uncertain, market; The meat business is always highly speculative. Farmers expect to get the parity of London prices of the day for meat that will not be on the market for, say, three months after leaving the farm. The purchaser has to carry al lthe risk of market fluctuations and to bear incidental expenses, often for a considerjtte time when the market is this past season the c.i.f. man has been very cautious, at one time merely buying from hand to mouth."