MEAT EXPORT SEASON

Wanganui Chronicle, Volume LXXXI, Issue 19049, 30 June 1924, Page 5

MEAT EXPORT SEASON

A COMPREHENSIVE REVIEW SERIOUS COMPETITION FROM ARGENTINE In view of the serious, and gradually increasing, competition from other countries, and the Argentine in particular, in regard to the exportation of meat, it is obviously essential for New Zealand growers to improve the quality of their produce, if they desire to maintain their position on the London market. Apparently the South American exporters have absolutely captured the beef trade, and arc prepared to sacrifice payable prices in order to find ready markets for their produce. NEVER-ENDING SHIPMENTS. “The Argentine is New Zealand’s most serious competitor in regard to the exportation of beef, and their shipments to London seem to be never ending,” remarked a gentleman who is prominently engaged in meat export business, when approached by a ' ‘ Chronicle ’ ’ representative on Friday. “From appearances, they have absolute control ©f the market. Their’s is such a wonderful cattle country that th?y have to find a market for their produce, and they are prepared to accept low prices to capture the market,’’ the informant continued. He instanced how the South Americans were reducing their prices to achieve this goal, and produced a recent cable from Home, advising that Argentine beef was being sold wholesale at 3,}d per ]b. “While the wholesale prices arc low,” he said “the unfortunate part about it is that the consumers are not receiving the benefits of them.” He explained that it was exceedingly difficult for the Dominion to compete with these prices, and the only way it could be done was by maintaining a high standard of produce. The Argentine was primarily a cattle producing conutry, and he did not anticipate any serious opposition from it in respect to the exportation of mutton, so long as the quality was here. The informant made mention of South America utilising the Continent as a dumping ground for its produce, and said that it had the effect of accelerating matters for the. New Zealand growers. “Of course,” he added, “every pound of meat that is sold by them in Europe has a reflection on the New Zealand trade, as we take advantage of the London market only.” IMPROVED QUALITY NECESSARY. Touching on the necessity for the growers to improve their produce, the authority said there was a growing tendency in New Zealand for the farmers to quit their stock before it had been properly fattened. “This is quite an important matter for attention,” he said, “but the buyers have been so keen to buy that they have been prepared to take stock before it had been properly developed and finished. This is detrimental to the trade, and, if the farmers’ interests are to be preserved, they should see that their produce is in a fit condition for the market before selling, as they have to compete against such a well-known sheep country as Australia. If the New Zealand producer confines his attention to marketing only the primest, and well finished mutton, the produce will stand out on its own, for there is no doubt that our lamb is the best frozen that goes to the English market. The prospects for the producers of mutton are good providing they continue to ship good quality stuff. The competition, in this connection, is gradually becoming keener from other countries, and the holding of the market greatly depends on maintaining, and improving, the quality of mutton for export. I do not think that the sheepmen are going to get the high prices that they have been receiving during the last two years, and they will have to look for lower receipts in the future. BAD SEASON FOR EXPORTERS. “The export season just about closing has been a good one from the producers’ standpoint, the qualities being dealt with being quite up to normal, although less beef has been treated, at any rate locally,” the informant explained. “The growers have profited during the season, but unfortunately the exporters have come out badly.” He pointed out that when the season opened early in December, the London markets were somewhat bare, and prices for mutton and lamb high. Early shipments were worth: Lamb lOd to lid; wether mutton 7Ad to 8'1; ewe mutton 6d to 6Jd; all ex steamer. These prices had the effect of giving exporters encouragement to go on purchasing. Once quantities reached the Homo markets, however, the prices receded fairly* quickly. In his opinion exporters should then (early in the New Year) have reduced buying prices, but as by-products (wool, pelts, and tallow) were improving in price, they continued at the same prices, and, in fact, for early shorn sheep, gave higher priced. IMPROVED PRICES EXPECTED. Freezing companies were apparently anxious to keep their works going as well as possible, in order to avoid excessive overhead expenses, and so continued to risk the markets. When e.i.f buyers refused to pay the prices demanded, English meat firms issued warning notes, pointing to the greatly increased quantity of chilled beef effecting lamb and mutton prices. They further predicted that with warmer weather at Home, and an easing of shipments of chilled beef from South America, some improvement in mutton and lamb prices might bo expected. However, up to the present, he said, no improvement had been noticed so far as mutton was concerned, although lamb had gone somewhat higher, with a dull sale. At present, lamb was worth approximately from 10 3-8 d to 102<l for prime, and 10 l-8d for seconds, ex-market London. glutton

was realising 6jjd to 7d for prime wethers, down to 6d to 6 3-8 d for second quality, and heavy weights. SHIPPERS’ HEAVY LOSSES. “These prices will leave shipper* with heavy losses to face, and even if the market docs improve at an early date, losses already made are not likely to be recovered this season,” he re-' marked. In referring to the exportation of frozen beef, he said that it had met with unsatisfactory markets right through the season, and on today’s London prices no exporter could pay 17s 6d per lOOlbs for prime ox beef, with a chance of getting his money back. Apparently they hao had a wet, cold spring, and a changeable earfr summer in England, and trade had not been good. DULL TRADE ACCOUNTED FOR. Other factors made for bad mutton and lamb trade had been the continued strikes, and consequent reduced earning power throughout the United Kingdom. In sounding an optimistic note, he said that, after all, meat prices had not been low to the consumers, and considering the fact that the English markets were the only ones open to New Zealand frozen meat, the position might have been worse. “During the past two or three years, too much has been paid by exporters for meat in New Zealand, and the length of time they will continue to do so. remains to bo seen! ” he concluded.