FROZEN MEAT CONFERENCE.

Gisborne Times, Volume XXVIII, Issue 2721, 28 January 1910, Page 2

FROZEN MEAT CONFERENCE.

OPENED IN CHRISTCHURCH. DROP IN PRICES COST FARMERS A MILLION POUNDS. f Pi'u Piikns Association. I CHRISTCHURCH, Jan. 27. The Frozen Meat Conference, called by the Canterbury Agricultural and Pastoral Association on the suggestion of Mr. J. D. Hall, opened- at the rooms of the Association at 11 o’clock this morning. Mr. D. D. Macfarlane was elected chairman of the conference. THE, CHAIRMAN’S ADDRESS. The Chairman, in opening the proceedings.. said that- the largo attendance showed that the Canterbury Agricultural and Pastoral Association was justified in calling the conference. The gentlemen present were keen and eager to improve the condition of the meat trade if it was possible to do so. and lie hoped to be able, at the conclusion of the conference, to congratulate them on the good work effected. A brief reference was necessary, .he continued, to th e circumstances under which the conference was convened. The trade had grown from 1,707,3281 b mutton mid lamb, valued at 5d per lb. ooual to £35,000, in 1882, to 269,773,6981 b, valued at £5,624,342. The rate at which the meat was exported in the last two years, a drop of Id per lb. meant a loss of something like *£1,000,000 to producers and shippers. The markets report for the past twelve years showed that the . prices of lamb varied from 42d to 62d, and mutton from 3td to 4£d, or an average of 52d for lamb and 4-id for mutton. The London wholesale prices for mutton during the last season were: February, mutton 3|d, lamb sid; March, 3 l-5d and 4id; April. 3 11-lGd and 4 3-1 Gd; May, 3-Jd and 4-cl: June, 3)d and 3£d; Julv. 2gd and 3id; August, 211-16 d and 3d: September, 3§d and 3gd ; October, and 4id. Owing to the drop which took place, the meat exported last year realised less by £1,500,000 than would have been the case if the previous average prices had been maintained. A large proportion of this loss was borne bv the producers in New Zealand, and the balance by the c.i.f. buvors. Itwas impossible' to accurately estimate these proportions. It appeared safe assume that, the farmers of New Zealand had lost £1,000.030. To prevent a recurrence, of such a drop, it was necessary to ascertain, if possible, the cause of the drop and then to devise and adopt measures as desirable and practicable. It was impossible.for the New Zealand Tanner to give -personal attention to his meat if ho sold it in the local stock market, in which case the ruling prices are governed bv the defective conditions which obtain in London, and low prices followed as the result of the conditions. It seemed eminent ly desirable that the. farmer should gather as much information as possible for the purpose of enabling him to ascertain whether, when his produce is offered for sale and subsequent-lv disposed of, he got a ‘square and honest deal.” Last year, in ignorance of the English market and of what their brother farmers were doing. New Zealand nroducers consigned their lamb and- mutton for sale in London, 525.000 carcases of lamb in May, and 677.000 carcases in June, a total of 1,202,000 carcases, as against 640,000 carcases) for the same months of the previous year. No special arrangements were made for the storage of this -enormous increase, and London buyers, being aware of the position, found it an excellent opportunity to engage every inch of storage space available, and then to dictate prices to the unfortunate shipper, who had nowhere to put his meat, and, naturally, no one to whom to sell it. Consequently, shippers' were absolutely helpless. The blame was hardly attributable to the astute London bn yep,

hut rather to the ignorance of the New Zealand producer, and to the fact that he has no o'lfe to effectively protect his interests at the other end. If the producer was to continue to act in his individual capacity, he was hardly to be pitied if lie found this operation repeated, and that he is deprived of a. fair share of the amount which is ultimately paid by the consumer of the meat. The remedy was for the conference to discuss as to whether the assistance of a paternal Government should be invoked, or whether the blessed principle of co-operation and combination were to be applied. Other matters requiring consideration were such points as rates of insurance, shipping freights and storage, methods of sale (both in the Dominion and in London), advices to consumers as to prices, and the amount of meat in London and in transit, the method of discharging from ships in London, and carriage to cold stores. From small beginnings in 1882, the industry was now the second largest in the Dominion, and during the period the system of farming was quite altered. A better rotation of crops was adopted, and the fertility of the soil was maintained by the application of cheap and efficient manures. Speaking for Canterbury, ‘he could safely say that farms are now in better heart than over, before, but if there was a repetition of last year's prices, farmers would have to put their land to other and more profitable uses. To the larger profits obtainable was due the rapid increase of the dairy industry. During the ten years ending 1908 the exports of dairy produce increased from £534,743 to £1,911,409, nearly three and a-lialf times the amount; whilst frozen meat produce increased from £1,571,468 to £2,910,754, not quite -double. Wheat was also engaging attention from farmers, and it was' expected that the exports of this cereal this year -would be a record. Whilst the farmer could turn h.is land to other uses, lie (the chairman) would be very sorry to sec the freezing industry displaced from its present high position. Continual cropping and dairying would exhaust the soil, and without sheep and freeing works they would find it difficult to maintain the fertility of the soil. The Association that ho (the chairman) represented, consisted of farmers and slieepowners, and it was only reasonable to conclude that the point from which they would view the matter would be that of persons personally and financially interested in the result. He did not overlook the fact that the representatives of the freezing companies were also present, and as indicating that they were willing to co-operate, they were grateful. Notwithstanding this, he thought that meeting must ue really considered as one of farmers, and as having been called for the (purpose of ascertaining, whether some combination cannot be arranged amongst them which will enable them to dispose of their ,produce in future under some more businesslike methods than have been adopted in the past. Mr. Geo. iSheat (North Canterbury Executive of the Farmers’ Union) moved a remit forwarded by the -Scargill branch, proposing that a' Farmers' Cooperative Distributing Association be formed to bring the producer and the consumer into closer touch. Mr. Sheat said that-, to prevent a recurrence of last season’s glut, it was suggested that the producers should combine and that, perhaps, cool stores should be provided at this end, where the meat could .be kept until it was time to place it on the London market. Mr. H. Acton Adams seconded the motion, and said that the shippers really did mot know who sold their meat at Home. There was an idea of storing meat m New Zealand as suggested by Mr. Sheat. At Home there was nothing known as to what meat was coining from New Zealand and. probably, they did not want to know. The Argentine people, however, knew what -stocks were going forward, and fixed their prices accordingly. He favored the grading of meat in the same way that butter and cheese are graded. After discussion, it was decided 'to refer the matter to the Committee of Inquiry set up by the conference. A PROPOSED FARMERS’ TRUST. A- remit from the Nelson Farmers’ Union, that a' Now Zealand Farmers’ Trust be formed to check any foreign combination inimical to the farmers’ interests by controlling a sufficient number of retail outlets in the Homo and Continental markets, to be run by New Zealanders, and ensuring to the' consumers demanding New Zealand produce .a reliable and regular simply of the genuine article, was referred to the Committee of Inouirv. A MESSAGE FROM THE PREMIER. The following telegram was received from the Prime Minister:—“l much regret that public duties prevent my attending tne important conference being held in connection with the frozen meat industry. My colleague, the Hon. T. Mackenzie, will represent the Government, and, needless to . add, that anything that the Government can do to assist in the promotion on sound lines of the frozen meat industry of the Dominion will be most readily, done. The problem of how to obtain the bestprices without undue fluctuation is an exceedingly difficult one, and can. I think, be only helped to a. successful issue by the old law of supolv and demand governing it. Much" I think, can bo done by mutual effort on the part of the number of interests operating in frozen meat in New Zealand, and I am of opinion that freedom of -action, without- Government interference, excepting where it can be exercised with the goodwill of the sheen-growers and sheep-salesmen in order to improve conditions, is essential. When -recently in London, the whole of the meat representatives asked me to meet them in consequence of the extraordinarily low price due to a glut by over supply. After a. full discussion, I expressed my willingness, on behalf of the Government, to do any tilling., at this‘end that was possible to assist the great industry in which the country, as a whole, is bo deeply concerned, -on to a more satisfactory and favorable footing. Of course the abnormal condition of excessively large holdings in England at the time cannot bo given as a reliable condition to guide those concerned in preventing ■a recurrence, as, naturally, if there is an over-siP"Jv at any one time in London from • the various markets of

the world, it can only be relieved bv the gradual absorption of the stock in order to get things back to a normal levei. I am quite sure that the practical men present- at the conference are both anxious and desirous of improving the trade in every way, and should any suggestions as the result cl your .meeting be made to the Government. I can assure you they will be most carefully considered. —J. G. Ward.”