AMERICAN BUYING

Wanganui Herald, Volume LIII, Issue 160731, 18 August 1920, Page 4

AMERICAN BUYING

NO NEED FOR MEAT COMBINE. (By Telegraph—Special to “Herald”); WELLINGTON, Aug. 18. In the course of his remarks at the annual meeting of the Wellington Meat Export Co. yesterday, the chairman (Mr E. Elgar) said in reference to American proposals, that there were sufficient works in New Zealand, providing they were run at full capacity, to deal Avith a year’s output of meat in two months, and there were other works being erected. The suggestion that producers could make use of an American monopoly in this respect was of little use. It was also one thing to make use of a monopoly and quite another to have it make use of you. By selling c.i.f. as in the past, producers would be benefiting themselves, but to give a monopoly the license, it asked for would only be to have more machinery and plant provided in a direction that Avas already done. “I notice with regret” added the speaker “that the present condition of trade is being used as a lever to induce the Government to alter its policy in reference to large American packing interests. The sale to America of last season’s output of prime grade lambs has led some people to believe that America offers an unlimited market for all grades of meat. Such is not the case, and I am satisfied from advices we have received from London, that the demand for our lambs from there will be just as keen as ever, notAvithstanding the large accumulation of stocks, which, by the way, are mostly mutton and beef. It must be remembered that our prime New Zealand lamb is without rival in the world, and does not enter into competition at any time with courser grades of frozen meat. No practical benefit can therefore be obtained by alloAving large American companies to establish expensive stockbuying organisations in New Zealand. Their very size alone would soon give them control of the bulk of the fat stock available, thus enabling them to dictate their oAvn terms to the industry. On the other hand there is no reason why any company, American or British, should not buy its requirements direct from freezing companies or their agents. This would save the cost of expensive buying organisations, which eventually must fall on the producer and would have the effect of retaining the control of meat in the hands of, producers who own the greater portion , of the freezing industry, Avhile, at the same time, pro Adding the fullest competition for our goods.”