FROZEN MEAT CONFERENCE

Gisborne Times, Volume XXVIII, Issue 2732, 10 February 1910, Page 7

FROZEN MEAT CONFERENCE

REPORT OF GISBORNE SHEEPFARMERS’ CO.’S DELEGATES.

The following! report upon the Frozen Meat Conference recently held .at Christchurch has been issued by. Mr. C. A. de Lap tour (chairman of directors) and Mr. W. F. Cedenvall (manager), the delegates from the Gisborne 'Sheopfarmers’ Frozen Meat Company: ‘ ‘The conference was convened by the Canterbury Agricultural and Pastoral Association. At first it had been proposed to confine the meeting to farmers only, but the chairman stated that wiser counsels prevailed. He, however, in liis considered opening remarks, thought it necessary to state £ it was a farmers’ meeting.’ The statement naturally established a cleavage among the members of the Conference which the progress of discussion rather widened.

“The principal questions directly or indirectly under consideration were: “1 Regulation of sh'ipm/onts from New Zealand. “2 Regulation of distribution in England. “8 Provision of cool storage in New Zealand. Provision of cool storage in or near London. “4 Damage, to meat. “5 Insurance. “6 Pooling. “7 Better organisation of freezing companies.

“It was impossible in listening to the debates to avoid an impression that the farmers attributed their losses last year to the want of organised protection, which they thought the freezing companies might and ought to have pror vided in the regulation of outward shipments and of distribution in London.

“It is, however, clear that the companies could not regulate shipments. Nor is it possible for them, except as to their own produce, to control distribution. It was true a proprietary company might hold back its output and cease buying for a time or times. It is impossible to suppose such a company would so act in favor of its rivals, or that it- -would be in the interests of the farmers that such a company should at uncertain times cease its normal operations. There appeared to be a common agreement that the farmers’ stock must be marketed when it is ready, and that his profit would depend upon the. conservation of his feed. The London season for lamb is favorable to New Zealand, in competition with other countries, and the farmers can materially improve the oosition by doing all in their power to have their lambs forward early to take advantage of the climatic advantage. It is the lo.te shipments—not the early ones—which are liable to be bold back in London, become stale, and are sacrificed. —Regulation of Shipments.—

* “After hearing all that could be urged in discussion —necessarily limited by the watch—we are of opinion that regulation of shipments by holding back supplies in New Zealand would be disastrous to the farmers. The proportion the New Zealand export bears to the meat imports of London would render protracted deliveries almost inappreciable. To the. extent to which such regulation contracted supplies below demand, the void would immediately be filled from Australia, the Argentine, or the Continent. With advancing: quality among foreign rivals Now Zealand cannot afford to educate the purchasers of its meat jn the acquirement of foreign meat at lower prices.

—Regulation of Distribution. —

“The proprietary companies, the speculative buyer, and the farmer who consigns, all have to bo considered. The first have their own agencies, which they would not readily forego. The buyers depend for their returns upon their individual relations with established distributing firms and the personal skill'and judgment of themselves and their aaents jn buying and selling. A uniform method of regulating supplies must impair their individual activities and probably put a stop to their trade. It is questionable whether the consignee can afford to look upon the withdrawal of the competition of the speculative buyer from New Zealand fields with complacency. This very difficult question is not to bo disposed of by the discussion or resolutions of a short conference, hut will demand the most careful ascertainment and marshalling of facts—which at present are not- available, and the fullest consideration which the ablest men can bring to its solution. —Additional Cool / ’ Storage.—

“We think it is incontrovertible that early shipments from New Zealand should be encouraged, and will be the most profitable to the farmer. Such early shipments would materially relieve the pressure of supplies from January to May, and such storage as might be asked for in New Zealand by consignees who wished to hold their meat could be found by the principal companies. So far as could be ascertained at Christchurch such storage has never been refused

“Cool storage provided in London by the farmers could only be justified if a sufficient quantity of free meat to be consigned on owners’ account could be relied u]>on, and if an independent scheme of -practical distribution, or distribution through some existing organisation could be AVorked out to the satisfaction of the farmers and their supporters. This 'has, in our opinion, to be found out by further inquiry, and must at present be considered to be an open question. , —Damage to Meat. —

“Very strong allegations were made as to the large amount in claims for alleged damage made against consignments in London. It was admitted that these claims are made with an increasing ratio to a fall in price’s. It was also stated by the Minister of Agriculture as facts, within his personal knowledge, acquired some years ago in London, when acting in the dual capacity for consignees and for an insurance company, that improper claims were proved to have been made. Quotations were also made of particular lots of meat against which a very high percentage of value was claimed as damage. On the, other hand emphatic denials were given as to these instances being a fair average of claims made on the whole output. We think that it is established that the damage to meat by carelessness and undue exposure after arrival of the ship is very serious. In part this damage is attributable to the multiplication of brands and spb-markg which makes it a task of great difficulty to sort the parcels between the barge and the cool store, and involves a protracted exposure, partial thawing and/ discoloration. It is suggested that, this might be improved bypooling all small lots. “It ivas. not shown what proportion of the claims made, were covered by insurance, and the Conference was wholly without information to enable them to judge' out -of whose pocket the losses for improper claims had fal-' len.

—lnsurance. “The insurance companies have not sufficient interest in resisting unfounded or excessive claims. It is far easier to pay out and raise the premiums than to contest claims. It is said, too, that the insurance companies do not care about the business. Relief to the farmer may be found in his pro-; viding through a farmers’ association or through the freezing companies his own insurance. This could be done upon a limited liability and reduced rate. Reliance upon a total loss cover hardly meets the difficulty, as total loss means total loss of a ship—not of the ■ article insured. The farmers’ insurance would involve the appointment and support of an agent in London, to watch claims and generally to protect i the interests of the consignees. Such an agent for other reasons is much required. —Pooling.— “Mr Waymout-h, whose experience is undoubted, strongly urged the pooling of all small consignments. This is not a new 'suggestion, but it came wit'u weight from the speaker. We think this could be done, and is what should bo striven for. It would undoubtedly give the Gisborne farmer better results than he can now obtain. The question can only be successfully approached by an organisation of farmers or freezing companies, as the sympathy and aid of the banks and mercantile houses must be obtained.

—Compulsory Grading.— “We are unable to recommend the introduction into the factories of the Government grader. Climate, local conditions and circumstances have all to be considered. These are remarkably divergent throughout the Dominion, affecting class, condition, and quality of meat. Uniformity of grade is impossible and undesirable. A district grade is an evolution. A high grade is a gradual result only reached by patience and high farming. The grade of any factory or district is perfectly known to the buyer. He knows what he wants and what he will get. and what it will cost him. Any comparison between butter and meat is obviously fallacious.

—Organisation of Freezing Companies.—

“Dominion organisation cf tile freezing companies is to be welcomed. Later it may lend itself to sub-organisations for the North and for the South for the regulation of interests not common to both Islands. That a Conference of all companies is to be held to be in touch with a Recess Committee of Farmers is matter for much congratulation, and should be the first stop towards acquiring and recording actual facts, the absence of which was so much felt at the Conference.”

INTERVIEW WITH MR. W. D. LYSNAR. The Mayor, Mr. AY. D. Lysnar, who returned from South yesterday morning, gave a “Times” representative an interesting account of the conference which lie attended as delegate from the Gisborne branch of the Farmers’ Union. He said that- he feared the direct benefit of the conference would be very little, but the indirect benefit would be great, as it would ultimately assist the farmer by the faeti that so much had been made public that it would probably reduce the disadvantages under which the farmers are working. It was perfectly iilain there were two distinct parties at the conference—the mercantile find freezing interests and the farmers. The attitude. of~the former representatives was to decry any need of improvement or change, and to show that the difficulty was really caused by the big slump of last year. Nevertheless, by the expressions of those able to speak with authority on the subject on behalf of the farmers, it was clear that the position had undoubtedly been accentuated by the slump; but, on the other hand, there was a grievance of long standing. It- had, in fact, been going on without the real knowledge of the. producer. The effect of the conference was to bring this before the mercantile people present, and sonip, of the statements made showed plainly that matters were .not satisfactory. There were many matters discussed wliicli were not published, as in a long conference the necessary space was limited. He was pleased, however, to find that tlie Agricultural Society had had a verbatim report taken, which he understood would be -duly printed.

—The Hon. T. Mackenzie’s Remarks.—The Hon. T. Mackenzie had made a most clear statement, in which lie said that he did not think the producer had so much to complain of in regard to the astuteness of his London representatives as the farmers’ own ignorance on the subject. Mr. Lysnar was satisfied that many of the wrongs they were enduring in connection with the handling of their inoat at tlie London end would be remedied immediately the London agents realised that tlie producer in flit- Dominion knew what was happening at the other end. . This had been emphasised by the assurance of the representative of a large London firm, given him after the conference, when lie stated that he was satisfied that tlie damage they were so much complaining of would be put right, and that ho was going to make very strong representations on the subject. Mr. Lysnar went on to state that he knew of others who were corresponding with London on the matter, which could only have the one effect—that was to reduc c , the cause of complaint. There Avas an attitude Avhich lie regretted to notice at the conference, of the repudiation of statements, Avliich Avent to fairly expose the position and cause- a complaint from the farmers’ standpoint. ' This was made very apparent when he quoted some figures showing damage- to meat from the North Island that averaged from 6 per cent to 18 per cent. —Losses Through Damaged Meat.— The people in tlie south held that that condition of affairs did not prevail with them, but oil looking into the matter lie ascertained that ivitli shipments made by four of the largest freezing companies in the South Island their damage ranged from about 6 per cent, to over 20 per cent., and ivas, in fact, a' higher ratio than the figures affecting North Island meat. The figures lie quoted from Gisborne district were 1452 sheep, 208 damaged (12.8 per cent.), 2579 lambs, 339 damaged (12.13 per cent.), 1196 mutton, 70 damaged '(5.6 per cent.), 553 lambs, 70 damaged (12.8 per cent.) The nett return of these lines to the producer after allowing for everything, pelts, wool, freezing, etc., was as follows:—For 1452 sheep (shipped in 1906-7) 2.7 Cd per ■pound, 2795 lambs, (same season) 3.63 d per pound, 1196 mutton (1908-9 season) 1.43 d per pound, and 553 lambs (shipped 1908-9 season) averaged 2d per -'pound. The damage allowed on the South Island sheep referred to was" as follows: —No. 1 company, 365 sheep, 39 damaged (11 per cent. 1 ), 173 lambs, 26 damaged (14 per cent.), 549 lambs, 80 damaged (14 per cent.). No. 2 company, 257 lambs, 59 damaged (over 20 per cent.), 69 lambs, 14 damaged (over 20 per cent.). No. 3 company, 646 sheep, 63 damaged (under 10 per cent), 584 lambs, 130 damaged (oyer 20 (per

cent.). No. 4 company, 112 sheep, 12 damaged (10 per cent.), 126 sheep, 8 damaged fG per cent), 191 sheep, .30damaged" (14 per dent). These, said Mr. Lysnar, were not picked cases, as had been alleged, hut were the first returns he could lay his hands on to in Christchurch They were entirely distinct shipments. The only attempt at disproof, beyond a general denial that was made at the conference, hut not after tlie publication of tlie figures, was made by a representative of a freezing company, when it was stated that the figures were practically of no value unless one knew the number of carcases contained in each hold of the ship, and the average damaged on the whole shipment. This being put forward by a representative of a freezing companjg he considered, showed great weakness, for it suggested two questions, which it was impossible, to answer. No one but the .ship’s officers knew what number of carcases were put into each hold, nor was it possible to obtain an average except by going through the account sales of every one who shipped by that boat. He quoted from information obtained in Christchurch, during a luncheon adjournment of tbc conference, eleven instances which showed a high ratio of damage. "Why, he said, had not the representatives of the companies, who had hundreds of account sales at their disposal, produced .their papers and shown that the figures he had quoted were not a fair average? The account sales lie had quoted from were available for the chairman of tlie conference to examine if they were questioned, but they were not.

—The Question of Freights.—

The question of freights was also considered at the conference, and Mr. Lysnar said that he mentioned what had been done by the Freight Reduction Committee in saving over one million pounds, wlncli on an allowance of 12-1 per cent., had meant a loss of over £200,000 to the shipping firms in the matter of commission. Mr. Lysnar also told the conference that at the present time there were important negotiations in .progress for the introduction of a new and reliable line of steamers for the carriage of produce to London that would mean a 50 per cent, reduction on the summer rates charged by the present companies, and on the meat actually shipped from Gisborne hast year it would mean a saving of £37,043 to the farmers of the G : sbor:ie district. Allowing that tlie shipping merchant obtained 124 nor cent, commission, it would mean a total loss to them of £4625 for the district alone. For the whole Dominion the figures would mean a saving in freight upon last year’s meat export of .£247,368. and allowing the same 124- per cent, commission it would mean a total loss to them throughout New Zealand of £30,875.

In conclusion, he expressed his regret that the members of the mercantile community should endeavor to throw cold water on the efforts, made on behalf of the producer, to remedy existing and legitimate grievances. It was reall.v for the mercantile firms to cmne to the aid of the farmers and assist them in every way, instead of acting as they were doing, in the opposite direction.