The Gisborne Times. PUBLISHED EVERY MORNING. FRIDAY, JANUARY 28, 1910. THE FROZEN MEAT TRADE.

Gisborne Times, Volume XXVIII, Issue 2721, 28 January 1910, Page 4

The Gisborne Times. PUBLISHED EVERY MORNING. FRIDAY, JANUARY 28, 1910. THE FROZEN MEAT TRADE.

The problem which faces the conference that has just opened in Christchurch is a very grave and an ex', tremely difficult one. Mr. D. D. Macfarlane estimates that the slump in the trade lias cost the farmers at least a million pounds; And there is no reason to suppose that he has over-estimated the loss. For more than twelve months now prices, both of mutton and lamb, have continued at a very low level, and nothing but the firmness of wool values has ’saved the situation for the pastoralist. About the middle of October there, wag. a temporary spurt, and, without warning, the market literally “jumped,” but the rise was due merely to the manipulations of speculators, and was not long maintained. Since then it has been very weak, and present prospects, are by no means hopeful. Last season the exports from New Zealand constituted a record and, landing as they did on a market that was essentially weak because of the depression in England, and in conjunction with heavy supplies from. the Argentine and Australia, prices were bound to suffer. The position might have been ameliorated had New Zealand’s heaviest shipments not followed each other in quick succession, hut it is not easy to remedy this defect. W hen farmers have their stock in prime condition they naturally want to get them off their hands. The freezing'works, in their turn, do not exist as storage agents, but expect to slaughter the stock promptly and despatch the earcases by the first Home boat that calls. Storage can, of course, take place in the cool chambers at London, but the accommodation is limited ; and owners naturally desire to have their stock disposed of as quickly as possible. In other words, unless there is a keen and steady demand for the whole quantity which comes forward, the “bears” at Smitlifield will always have the best end of the stick in fixing prices. That they utilise this advantage to the full will be recognised by most people who have personally observed the sale of fi-ozen meat in the Old Country. Even when prime New Zealand mutton was selling at twopence per pound and under, the consumer in London and the provinces was being charged almost the same prices as before the slump. Had an organisation representing the (pastoral interests of New Zealand been in existence at that time, and able to handle a- retail trade, it would probably' have been good business to have disposed of the whole of the stock of New Zealand mutton and lamb then stored in London, even at the low prices ruling. The opportunity would have been

a good one to push the consumption of our frozen meat in parts of the United Kingdom where it is at present little known; and the advertisement thus obtained would have tended to compensate farmers for the low prices. More important still, the market would have been cleared, and would have been better able to deal with t’..-- new season’s supply. As events have turned out, the stocks of last season’s lamb are not .yet quite cleared. Present indications are that both Australia and 'New Zealand will have heavy supplies of mutton and lamb to dispose of this •year, and the Argentine shipments will also be heavy. Speaking in Canterbury a few weeks ago, the Minister of Agriculture figured it out that there •would be from 12,000,000 to 15,000,000 carcases of lamb on a market able to absorb only 10,000,000 carcases. If that be the case, it is obvious that no regulation of shipments can appreciably improve the position for the growers. What is really wanted more than anything else is an expansion of markets. If we could only induce the Governments of France and Germany to permit their workers to enjoy wholesome and tasty mutton and lamb, instead of the tough flesh from the bro-ken-down cab horses of London, we should have 'no difficulty in selling at a reasonable rate all that our country could produce. In England we are catering to a population of 4-0,000,000 people, but there are 60,000,000 in Germany who are almost confined to a vegetarian diet because of the restrictions placed upon the importation of foreign meat. Even the American workers arc made to suffer, if not hardship, at any rate a good deal of inconvenience, from a similar cause. The United States is not k good sheep producing country, and during the winter months mutton and lamb are at such prices that the masses .of the people cannot afford to buy it. Just at that season of the year we could supply them conveniently, and to have this market of 50,000,000 (people opened would be of tremendous benefit to our pastoral industry. Unfortunately there seems little prospect at present of obtaining any change of prolicy on the part of the Governments concerned,:, and all that can be done is to make the best of the English market. In this connection we do not like the idea of the State going into the business on its own account as a purveyor of meat, and yet it is difficult to avoid the feeling that private enterprise is not doing the best that can he done to popularise the use of frozen meat. There is too much centralisation in London, and too much is sacrificed to that policy to make for the proper encouragement of the trade in all parts of the United ■Kingdom. This is an aspect of the question which is sure to receive a deal of attention at the present conference. So far as regulation of supplies is concerned, it may be possible to do something in seasons when the aggregate output does not substantially exceed the demand. In this connection a shining example is provided by the Danish farmers who supply the London butter market. Each week they meet and fix the price at which they will sell their butter for the ensuing seven days. They do not try to override the law of supply and demand, hut having estimated the strength of the market, they act accordingly. Occasionally their judgment is at fault, and their business suffers, but on the whole it is sound, and in practice the system works out admirably. Their ■position is scarcely analogous to that provided by the meat trade, for they have a monopoly of a high grade butter that the public of England demands in regular supply, but the principle adopted is worthy of consideration. It .is to be hoped that something tangible will result from the holding of the present conference, which appears to represent very fully the pastoral interests of the Dominion.