FROZEN PRODUCE LETTER.

Press, Volume L, Issue 14975, 23 May 1914, Page 4

FROZEN PRODUCE LETTER.

MEAT MARKET TALUES, AMERICANS DOMINATE BEEF. (FROU OCB SPECIAL CORRESroNDENT.) LONDON," April 17. Considering what hopes were entertained at the beginning of the present frozen meat season, one must suppose that the present progress made occasions some disappointment in the trade. Whether this shonld or should not be, is another matter, but there remains tho fact that the initial epurt gave bigger promise. It was all very well for people to talk about 7d lambs; the trade hero knew that it would take time to get the retailer into position to be able to pay such a price. Many are likewise of opinion that 6d and a shade over for Canterbury, and a trifle under for North Island lambs, is, after all, not a bad price—but, as I have said, this season it* is disappointing. Bona fide shippers, at any rate, have not done badly on such a basis, but then there are, perhaps, few » bona fide shippers, so much speculation having characterised the trade this year. Further, New Zealand supplies have been earlier than last year, and the present level above 6tated has been maintained, in spite of the early rush and despite Australia's big coup at the start. Reverting to the present complexion of \ tho market, lamb is making a fair sale, but with the heavy arrivals, London stocks are becoming -very heavy; in fact, people say the stores are full. Mutton is a poor sale, and heavy nmttpn may be said to be unsaleable. With regard to this, it is to bo noted that South American and New Zealand ton seems to he getting consistently heavier again. I would be the last one to advise the New Zealand farmer wh it pays him best; whether so much a lb on a cheep 101b heavier than another one is policy or not, he knows best, but I must say that the market here is consistently refusing to pay decent prices for heavy mutton, and when I add that there is all tho difference between 32<i and 4|d for heavy and light New Zealand sheep respectively, the force of my remarks, at any rate as concerns tliis side, may be appreciated. THE BEEF SITUATION . Hie frozen as well as the chilled beef market seems to be entirely dominated by American operations. The weekly avalanches of about 80.000 quarters of Argentine chilled beef, which have vow been regularly appearing for the past five or six weeks, have reduced both chilled and frozen prices to n minimum. Just now I see the nominal quotations are chilled hinfs, 4id; chillod fores, 3sd; frozen hinds, 4 7-16(1; frozen fores, 3Jd; but trade"is almost n dead letter, and lower rates are frequently accepted. The most disastrous phase of this market is its forward business. As a matter of fact, forward business is nil; buyers seem completely demoralised by Yankee operations.- No one eoems to care to make forward purchases of beef, in view of the uncertainty as to what the Americans may do with the market in June. There is certainly good reason for much apprehension, seeing how prone the Beef Trust firms are to slump the market again and again, even when they would seem to be the biggest losers by so doing. THE LA PLATA REPORT. Now that the Nelson-River Plato combination is. au fait" accompli, one wonders what next new feature of in;terest will develop in the strife.among the South American moat exporting companies. We have not yet got the records of all the,companies' results during 1913 j but the period could riot have been quite such a difficult one as =ts predecessor for these parties. One of tho most interesting balance-sheets so far to hand is that of the La Plata Cold Storage Company, the Swift-own-ed concern which is making records and outstripping all others as a big Argentine meat exporter. The report for 1913 records a profit of 1,114.659 dollars gold, and this result is thought ; iy the directors to be satisfactory, "taking into consideration the conditions which prevailed during the year." I confess I myself have wondered whether the figures as given really represent the exact course of normal trading during the year under review. It would seem riot an impossible thing for meat to bo invoiced forward at 'a price which would represent a margin on cost and if poor sales resulted at the selling end. the deficit would,' one would imagine, be set right out of the unfathomable exchequer of Swifts. Of course, I do not say that this is done; in fact, if it were so' there would be nothing untoward in the matter. But I rather fail to see where these big promts come from, and it might be useful, after all, to dress the shop window in such a way as to strike terror into the hearts of competitors. My read 7 ers can accept this theory, or not, as they choose. * PRODUCTION COSTS. I notice that a contemporary on the spot, '"The Review of the River Plate,'l--goes in details into the question of Argentine beef production costs, and the argument is interesting. At the present time, we are told, the works are paying for good animals for freezing of 2 J years old giving about 7501bs dressed beef, a price which works out at 23 cents per lb, and for three-year-old animals giving 8301bs dressed beef, 22$ cents per lb. Prices to-day for this class of stock show an increase of 40 dollars over those ruling a year ago, and an of 60 dollars on those ruling two years ago. 170 dollars to 180 dollars, is now a common price for good stock , on the farm, and it is expected that before long this price will reach 200 dollars. This, says the Review, is all very satisfactory for the breeder, but in view of the low prices ruling in theconsuming markets.' it is not satisfactory to shareholders.although., their situation is not so bad in view of the fact that prices for by-products continue to steadily increase, and it is out of these by-produots that any profits in the business are being made. ARGENTINE v. AUSTRALIAN CONDITIONS. In considering tho effect of the Americans' operations as meat producers, one must not forget that in Argentina, at least, they have undoubtedly been responsible for doubling the price of livo stock. The Queensland Premier, Mr Denham, pr6bably has this in mind when he expresses bjs opinion that Americans will bring increased prosperity to his State. Another thought occurs to mc in this dir<?ction, and that is that the Americans, clever as they , may be, may not find the geography of the frozen meat production in Queensland suit them'as well as in Argentina, where all export practically converges on the one base, Ayres. With meat works at distant points along an extensive coast, it would not be possible to switch stock supplies from one place to another, and so exercise an important governing factor in freezing works control.