The Wanganui Chronicle. "Nulla Dies Sine Linea." "FRIDAY, MAY 9, 1919. THE FROZEN MEAT TRADE.

Wanganui Chronicle, Volume LXVI, Issue 7566, 9 May 1919, Page 4

The Wanganui Chronicle. "Nulla Dies Sine Linea." "FRIDAY, MAY 9, 1919. THE FROZEN MEAT TRADE.

The annual review of the frozen meat trade supplied by Messrs W. Weddel and Go., Ltd., of London, has come to be regarded as one of the most comprehensive and informative expositions of the industry. The firm's thirtyfirst annual xeport, copies of which are just to hand, relates more particularly to the abnormal conditions under which the meat business was earned on during the Jast year of the war period. It is noted, to begin with, that there was virtually no "trading" in beacs m 191S*—but merely distribution under c fficial regulations so designed, as to control absolutely both consumption and prices. The introduction of compulsory meat rationing in March marked the final stage in the Imperial Governments acquisition of the eontiol of the trade. As a measure of national necessity, rationing was welcomed by the general community, though many of the methods adopted to put it into force were severely critie-if-ed. Now that its course has nearly tun, and its\results can be seen, a Inrge measure of success may be fairly claimed for it. By forcibly checking consumption, the Government certainly adopted * very prudent course, and their action may be justified by the maintenance of Home flocks and herds; but inanifeatly many of the official forecasts published from time to time, as to an impending meat famine, v.-ere of an unnecessarily alarmist nature. The dispersal of queues may ye j claimed as another important benefit ! secured- by rationing, because in all [ rrobability it would have been imposj sible, under ordinary trading condi- ; fcions, to have forced consumers to take \ whatever quality was given to thorn, s-t j fixed prices. Rationing made that I course both necessary and possible, i Although it was intrinsically unfair, the nation realised that there was an [ element of rough justice in the arj rangement, and patriotically accepted jit for lack of better, just because it was imposed (Upon them by the Go?- ---; eminent. There is this further \o j the great credit of the Ministry of Food, that from the outset ,the weekly i "ration" was obtainable by everyone ; and this, perhaps is the best justifiea- | lion to be found for the extremely con-, servative attitude adopted in estimating supplies generally. A comment ;-f some significance made by Messrs Weddel ia that "having regard to the prices at which much of the imported meat was secured by the Government, the prices charged to consumers for same must have left some very lams margins of profit—anJeas expends were incurred far in excess of what would have been incurred by private distribution, or losses in other directions were used to absorb these gains." The firm assert, however, the char-so ot undue profiteering sometimes made egainst British traders never had any substantial foundation, even (during tho period between the outbreak of war and the time when the Govern-ment-took over importations early m 3915. Since that time, the whole of the Australian and New Zealand tra-de, f.lso the great bulk of the South American exports have been entirety in the hands of the Government. In Marc'i, 1918, the remainder of the Argentine cutput, also the whole of the South African, Canadian ixnd L'nited States trades were taken oi-er, so that private trading, and therefore any possibility ofpri vate profiteering, have been -Ainnnated almost altogether. If the Treasury had not profited greatly ;.y these transactions it will cause tivj greatest possible surprise to expert trades, accustomed ns they were in I re-war times to carry on the business on a margin of 1-Sd to \d per ib., v. here'as the margin.? left to the Gov-

eminent cannot have been less than ?d to 3d per lb. in many cases, and rs much as 5d per lb. in some. Official quotations .in 1918 were appreciably higher than in 1917. The course if valuer since 1914 shows a raoe of advance under Government control which, conceivably, might have been exceeded under free trading; but :n Messrs Weddel's contention it is hard to Relieve that any greater increase than the 200 per cent, established for imported meats under official management could have taken place under any commercial method of handling supplies. The world's output of frozen beef, mutton and lamb in 1918 ■was about 1,300,000 tons (plus an undisclosed quantity shipped to France by the United States Government, <n crder to feed their own soldiers), ;is against 965,000 tons m, 1917, 915,330 tons in 1916, 881,075 ton s in 1915, and 800*375 tons in 1914. The year just closed shows the most substantial increase of any, despite the great difficulties attending transport The American group handled more than 1 alf of last year's production, their txports from all sources being estimat|ed at 630,000 tons, made up of United States, Argentine, Uruguayan, Bra--15-ilian, Patagonian, Canadian, South African, New Zealand and Australian shipments. That total represented 55 per cent, of the world's output of iiozen meat, without allowing for their share in supplying the States beef * hipped to France for the use of the American army, and. was nearly onothird more than the total quantity ct nveat imported into the United Kingdom from all sources. The review ?how.s conclusively that despite all difficulties, the world's frozen meat trade has continued to expand m volume and i* value during the war; and 1918, the yea* of largest production, has also been the year of the highest prices ever recorded in the history of the trade. As to the immediate outlook, Messrs Weddel remind colonial producers that the dominating factor of the near future is the policy of the Government as to releasing it control of the trade m the Mother Country. Invfche opinion of many, a definite decision might well have been arrived at ere now in favour of an early reioase. The nature of the guarantees given to Bn- ! tish farmers may make it difficult \o I clear Home supplies from official -re- | yulatiotts before the late autumn; but imported supplies might be wholJy released by midsummer rrom the restrictions which prevent British traders from handling their own produce. Distribution may have to be carried cut subject to some agreed scale 1 1 maximum prices, and the registration or customers may have to be retained, so long as Home meat.remains und;n* any State control; but freedom to import, to select markets, to discriminate .as regards quality, ought, in Messrs Weddel's opinion, to be permitted iv\mediately. If even these corcessions were made, tlie statistical pontion is sound enough to bring about- an altround reduction in prices; and if control were completely removed, and \t trading conditions m\re allowed to return to normal methods —modified as these must be by the new conditions in Europe—the reduction in prices might well be quite substantial. Two c'ifficulties whioh may be allowed to stand in the way of removing control at once are (a) the high prices pnv« mised to British farmers until September, and (b) the fact that for some reason whica is not apparent, the Government has recently extended its ownership of the New Zealand export until June, 1920. Messrs Weddel tegard it as "difficult to see how that very recent purchase can be justified a> a war measure, seeing it was made after the Armistice was signed. .As a, speculation in meat it has been en« tered upon at too high a cost for safety; and, in order to protect their tosition in the market, there ''s considerably temptation for the Government to purchase the outputs of other countries. The small Patagonian output C: frozen mutton and lamb for 1919 has already been secured. If this course .should be adopted with any other ivources of supply, the position of t^ic Government must become so compromised that they will, find themselves constrained to try to retain oompleta control of the whole trade, long alter the conclusion of peace. It is doubtful, however, if American producers will agree to remain indefinitely under the restrictions now in force, these having been quietly submitted to only us a war measure. If, on any grounds, foreign traders were allowed to securefreedom of action, while -British producers and distributors had to remain vnder control, the last of many unfriendly "blows would have been struck ft the interests of British traders by their own Government." Messrs Wedoel's final comment is that "the whole situation demands reconsideration, and it is hoped that all official control may be quickly removed from the British market, so that freedom of contract may be restored at all stages be- j tween the producer and consumer. Only thus can full advantage be takesn of the world's capabilities for production, and of the traders' very completa ptrangements for cheap and effective distribution."