MEAT PRODUCERS BOARD

Waikato Times, Volume 98, Issue 15289, 16 July 1923, Page 6

MEAT PRODUCERS BOARD

FIRST ANNUAL REPORT. GOOD WORK ACHIEVED. I REVIEW OF OPERATIONS. The following is the first report of the New Zealand Meat Producers' Board. It covers 15* months from March 14, 1022, to June 30, 1923: Statement of Accounts. The Board possesses investments totalling £17,000 (which have returned £436 in interest) and other assets bring the total to £25,593. The accumulated fund stands at £24,355. Levy. To enable the Board to function properly the Governor-General in Council made a regulation fixing the maximum charges to be paid by way of levy In respect of meat exported as follows: —(a) Lamb or mutton, 2d per carcase; (b) beef, Id per quarter or 2d per side. By gazette notice on the same date the Board fixed the amount to be paid on meat shipped after the date of such notice at half the above charges. The revenue from this source up to June 30, 1923, amounted to £42,542 or £42,117 net after providing for collection. As a result of a complaint, the Board sought an opinion as to whether a purchaser was en-titled to deduct the levy when -settling for the purchase of Tat stock. The Board has now been advised that such action is not legal, as the levy is payable upon the exportation of the meat, and as a matter of fact, dn some cases such fat stock purchased may never be exported. Multiplicity of Marks.

A problem which has given great concern to those interested in the frozen meat trade for many years past is the multiplicity of marks comprised In shipments. The Board decided that this state of affairs must be remedied, -and brought in a regulation fixing the size of shipping parcels of mutton and lamb at a workable minimum of 300 carcases. It is anticipated that this regulation will reduce the number of shipping parcels by about 75 per cent, and will result in better prices being obtained and a reduction in freight rates and insurance when the savings effected in handling charges are realised during a season's operations. Grading. Along with its action in regard to the reduction of shipping parcels, the Board set out to deal with a further difficulty, which was this: The factories throughout New Zealand had all •their own kinds of grade marks for various qualities. Freezing companies also had different brands to indicate particular qualities at each works. The Board laid down a system of grade marks which should apply to every factory, and this scheme was adopted after consultation with the freezing companies. To-day there is only one mark for first quality lamb for New Zealand, and the same for other grades. New Zealand mutton and lamb holds a unique position in the world's meat markets, a position which has not been challenged by any other country; but we cannot afford to have our supreme position threatened by competitors who are Increasing the quantity and quality of their mutton and lamb exports. Further, we must aim to give an unchallengeable guarantee that the whole of the huge quantity of frozen meat sold by New Zealand on the world's markets is strictly according lo grade specified, and thus inspire confidence in the buyer. It is this confidence which will enable the meat to be sold in advance and not after Inspection and delivery with documents, with the accompanying possibility of a quality claim with its many abuses. If this can be accomplished and the Now Zealand grading accepted as final at the other end, it will mean many thousands of pounds to the meat producers of the Dominion. In order to supervise the grading of meat the Board apointed four inspectors to visit all freezing works throughout the Dominion, and these officers are each doing valuable and efficient work. Many farmers are inclined to kill their lambs before they are quite ready, which is against the best interests of the producers of the Dominion. There would be an immenso gain if they would hold them for the short extra period necessary and get the additional quality and weight. If the Board can raise the standard of quality so that a larger percentage of New Zealand meat scores "prime" grade the result will be an Immediate material gain, besides creating a valuable permanent asset in the enhanced reputation of our mutton and lamb.

Handling Frozen Produce. The Board's supervising graders are required to watch the loading of frozen meat, and ■through their reports ■the Board has brought about many substantial improvements which make "for the better handling of our meat and ensure its turning out with an improved appearance. In these reforms the Board has had the full cooperation of the shipping companies and other controlling authorities. The. Board's inspectors also watch the loading -of butter and cheese. In addition the discharge of every steamer with New Zealand meat is watched by 'the Board's representatives at the London end. The Board is convinced that the actual presence of its officers has a very beneficial effect on the methods of operation, and the salaries arc saved many times over. Regulation of Shipments. In order to meet Hie great need of some method of regulating the shipments of frozen meat, the Board inserted a provision in the freight agreement completed with the shipping companies, which provided for the constitution of a Shipping Allotment Committee, on which the Board is represented. This important question is closely reviewed at every meeting and is continually under consideration .by the Board's representatives on the Shipping Allotment Committee. Had it not been for the steps taken by the Board this season there would have been very little meat left in stores at Lhis end long before the end of the season, whilst the consequent additional shipments congesting the London stores could not have favourably affected the market. In regulating shipments the. Board has taken a serious responsibility, but results showthat the action was fully justified. The Board might make some mistakes, hut it will never make the mistake thai was made, two years ago, when the collapse of the London market was accentuated through lack of regulation of shipping. Fat Stock Prices. With the object of keeping farmers advised of what is happening in other districts in regard to prices, and assisting them to market, their stock to the best advantage, the Board made arrangements, to supply particulars of

such prices each week to the press. Evidence has been received showing the immense value which has accrued to the meat producers by this service. Shipping Freights. After lengthy negotiations with the shipping companies the Board was successful in obtaining reductions in shipping freights on frozen meat for The 1922-23 season, as follows:—■ Mutton, from ljjd per lb plus 2i per cent to lid per lb net; lamb, ljd to lid; veal, ifd to ljd; pork, ljjd to Id; beef, quarters, iSd to ljd; boned beef, cases, l§d to ljd; boned beef, bags, 13d to 14; frozen sundries, cases, igd to 3d; frozen sundries, bags, lj-d to |d; mutton, legs and pieces, cases, ljd to 1 7-16 d; mutton, legs and pieces, bags, ljd to 1 7-l Cd. These reductions represent over £575,000 this season to the meat producers, and it should be emphasised that they were obtained only after very lengthy negotiations, and only after previous offers had been rejected. The shipping companies have met the Board in the matter of giving material reductions in respect of the freight rate on pork, frozen sundries and offal, and these reductions are of considerable economic value to the Dominion. Owing to the serious position of the beef producers the Board endeavoured to obtain a further reduction in the freight rate on beef. The shipping companies met the position by granting a reduction of £d per lb on the current contract rate to operate from April 28, 1023, until the termination of the present contract, namely, October 31, 1923. The Board was also instrumental in obtaining reductions in the freight rate on tallow and pelts equal to 22s Cd per ton from April 3, 1922, and a further reduction of 30s per ton from September 25 of last year. Reductions in freight on frozen meat and other produce shipped to Vancouver and San Francisco were also obtained. Handling Costs at Ports of Discharge. Reductions have been made by the Port of London Authority on three separate occasions since the Board took office. The reduction during the 1921-22 season represented 6s 2d per ton in management rate, and Gs 9d per ton in rent after 28 days. A further reduction representing 2s 3d per ton in management rate arid is lid per ton in rent after 28 days, took effect as from January 1 this year. It is anticipated that negotiations now proceeding will result in a further reduction being announced shortly. Reductions have also been made in the charges at the Ports of Manchester, Liverpool and Southampton, including drastio revision by the Trafford Park Cold Stores, Manchester, in the charges from alongside ship for frozen meat and other produce, viz., storing, reduced from 26s per ton per month to 12s per ton per week and 3s 6d per ton per week after the first week. The cost of storing meat in London is still far in excess of New Zealand charges, and the Board has been carefully considering the advisability of erecting or acquiring one large up-to-date cold store on the Thames. Freezing Charges.

The Board has been instrumental in obtaining reductions in freezing and handling charges in the case of certain freezing works, and these in turn have meant reductions in other works to meet resulting competition. To assist the beef industry the Board was successful in inducing most freezing works to make id per lb reduction in their charges for slaughtering, freezing and storing beef as from April 10, 1922. Railway Tariff. As the result of representations made the Railway Department agreed to make a 25 per cent reduction for carriage of frozen beef for export and life fat cattle for slaughter for export. This reduction took effect on April 10, 1922. On November 16 the Board obtained a reduction in railage charges for frozen mutton and lamb. This represented a reduction of 20 per cent. Later in the season with the development of the pork industry the' Board was successful in obtaining a similar concession on frozen pork. The Board has also taken the opportunity on a number of occasions of discussing other matters, and is receiving the full co-operation of the General Manager of Railways in effecting improvements. Pork Industry. When conducting negotiations for freight rates for the 1922-23 season with shipping companies the Board set out to obtain special reductions in the rate on frozen pork in order to encourage and develop an industry which is at present in its infancy. The Board's efforts resulted, in the freight rates on frozen pork to the United Kingdom being reduced from igd plus 2i per cent to Id net per lb, equal to a 40 per cent reduction, and this action has already had most beneficial -results. Further, a concession in railway freight rates, previously obtained in respect of frozen mutton and lamb, has been extended to frozen pork. This is a reduction of approximately 20 per cent. Imperial Preference.

The Board strongly associates itself with the policy of Imperial preference and the ideal of making the Empire self-supporting in all essential commodities. It has given its support to the British Empire Producers' Organisation, an important body in London which exists for the attainment of those worthy objects, and aims "to conserve, develop, and maintain effective control of the resources and raw materials of the Empire." Advertising and the Empire Exhibition. Towards the end of last year the High Commissioner for New Zealand consulted with Mr J. S. Jcssep, vicechairman of the Board, regarding the display of New Zealand frozen produce In the window of the High Commissioner's office in the Strand. As a result a small refrigerating plant has been installed and is proving a most effective advertisement for all classes of New Zealand frozen produce. The Board, fully recognising the immense value of advertising and propaganda \vo.rk, has decided to boar half the cost of this plant, which is readily transportable and can be used at agricultural shows and elsewhere. The Board is also strongly of the opinion that special advertising of New Zealand lamb and mutton throughout Great Britain should be undertaken, and the newly appointed London manager, who has recently left New Zealand to take up his new position, has received instructions on this matter. The Empire Exhibition. 1924, will afford a special opportunity for advertising our produce to the millions of consumers who will visit the Exhibition, and thus further develop New Zealand's markets within the Empire. The Board has made itself responsible for the frozen meat exhibit and is determined that this exhibit shall be second to none. With the Board's assistance and advice the Government is preparing a film depicting every phase of the frozen meat industry' in New Zealand. The screening of this film at ihe. Em- .

pire Exhibition, 1924, and throughout the United Kingdom and elsewhere, should be a most valuable advertisement on behalf of prime New Zealand meat. Retailing of New Zealand Meat. The London office has been closely watching this question, particularly with a view to ensuring that meat that is sold as "New Zealand" shall in every case be genuine New Zealand meat, and steps have already been taken to initiate prosecutions against unreliable retailers. The Board has under consideration further proposals with a view to effectively safeguarding New Zealand's good name in the meat trade. The proposals contained in the Merchandise Marks Bill are also being closely watched by the representative of the Board in London, who has made •strong protests against certain objectionable features. As a result of the opposition to the moasure the Imperial Government has already agreed to certain important alterations. Markets Abroad. The Board is fully seised with the Importance of extending our markets abroad where tariffs and other conditions permit. It has obtained information as to the possibilities of markets in the East, more particularly for beef, but at present the prospects far a profitable trade with China and Japan are not bright. The general manager was recently instructed to proceed to South America with the object of enquiring into and obtaining information regarding the conditions of the frozen meat trade. Mr J. Fraser left New Zealand on May 8 and it is hoped that his investigations will materially benefit the meat producers. Oversea Meat Interests in New Zealand Freezing Works. Very earnest consideration was given to the possibility of the purchase or erection of freezing works in the Dominion by oversea, meat interests. Rumours were recently la circulation that the purchase of freezing works was contemplated by certain oversea interests, and the Board decided that in the event of any such purchase, or erection of freezing works by oversea interests without the approval of the Board, It would take such action as would prevent such interests controlling the meat going through such freezing' works. Insurance. The Board has gone very closely into the costs and conditions of marine insurance on frozen meat, but has not yet completed its investigations. It is quite clear that unjust claims have been made under insurance policies, and surveys called which were not justified, and the Board hopes to secure a remedy for these abuses. If no other way out can be found, it may be necessary for the Board to take over the whole of the insurance of meat seat out of New Zealand. There is no doubt that the Board's actions and enquiries have in the meantime had a most important bearing on the reduction in the rates which are current for the 1922-23 season. Kidneys In Lambs. In furtherance of the policy of the! Board to get for the producer the highest net price, the Board investigated the question of retaining the kidneys and kidney-fat in lambs. Alter taking the evidence, the Board decided that it was in the interests of the grower to have the lambs prepared for the market in this manner. The Board's decision took effect in respect of lambs slaughtered on and after January 8, 1923. Producers' Representatives. Three members of the Board appointed as representatives of the producers will retire on August 31, and an election will be conducted under the regulations contained in the New Zealand Gazette of June 7, 1923. These provide that the various districts shall elect delegates who will constitute an Electoral Committee,

which will assemble and elect tho producers' representatives. The latest official sheep returns, which, are those at April 30, 1922, shall be the electoral roll. Every sheepowner on this list having 100 sheep or over shall be entitled to vote for delegates to the Electoral Committee. Nominations for delegates on the Electoral Committee or for producers' representatives may be made by any two sheep farmers appearing on the official sheep returns as owning not less than 100 sheep. If more .than the necessary number of delegates are nominated for any sheep district, a postal ballot will be held. Conclusion. We think the meat producers of the Dominion will agree that the existence of the Board has been a most effective insurance policy against any actions directed against the farmers' interests. It should be remembered that the Board's work has been all new; it was blazing a trail and has had to feel its way as it went, but it can be depended upon to treat every problem in a business-like way. Already it has carried out important and far-reaching reforms which cannot fail to bring profit to the producers and to the Dominion as a whole. The Boaird fvould emphasise that much which has been so far achieved could not have been accomplished without the existence of the compulsory clauses of the statute. The immensity of the Board's responsibilities in regard .to the control of the whole of the frozen meat exported from New Zealand can be best realised when it is slated that such produce represented 52.88 per cent of the mutton ana iamb which required to be imported into the United Kingdom during thfc year 1922 to feed the millions of people who inhabit our Mother-country—-and in 1921 the percentage was no less than 66.25. Statement of Accounts. The statement of accounts shows: Expenditure.—To expenses of management, head office £6536 is 4d, London office C4OSI 6s lid—£lo,9l7 8s 3d; expenses of meetings, £3817 7s sd; travelling expenses, £SG7 lis 4d; supervision of grading and of loading steamers, £IBSB 14s id; Advisory Committee's expenses. £2S7 14s Sd; donation to British Empire Producers Organisation, £100; "Eat Beef" campaigns, £2lO Os 6d; depreciation on furniture and office, equipment, £lO9 2s Gd; excess of income over expenditure'for period from March 14, 1922, to June 30. 1923. £24,385 15s 7d; total, £42,553 14s 4d. Income. —By levy on meat exported, £42,117 6s 9d; interest on investments, £436 7s 7d; total, £42,553 14s 4d.