FROZEN MEAT TRADE

Dominion, Volume 8, Issue 2361, 18 January 1915, Page 7

FROZEN MEAT TRADE

GILBERT ANDERSON & CO.'S ANNUAL J REPORT t 1 i FUTURE PROSPECTS ; 1 Reporting on the frozen meat trade for ] the season ending September 30, 1914, 1 Messrs. Gilbert Anderson and Co., 0010- j nial agents, London, say:—ln order to J bring out report into closer line with the ; season in the Dominion, we are issuing ■ it ono month earlier, in the hope that it j will be of greater service to the growers as a guide to the new season's operations and values. From the growers' position , the season 1913-14 must have been ex- ' ceedingly satisfactory. The high prices anticipated by the trado led forward buyers to offer prices much in advance of ' former years. This resulted in a basis ] Of values being established in the colonies ! which made business difficult. Supplies ■ during the last months of the season 1913 ' were restricted and stocks were exceeding- , ly light. ; At the beginning of the new season, Australian lamb, which opened at 5 3-Bd., '■ rose to 5 7-Bd.; mutton, 3 7-Bd. to 4 3-16 d. : Canterbury mutton and North Island lamb were off the market. North Island ■ mutton was selling at 4 3-Bd. to sd.j ' South Amcriau mutton and lamb at proportionate high pries. New Zealand beef fores rose from 3 3-Bd. to 4d.; hinds, 4Jd. : to 4jd.; Australian, at l-Bd. lower. River : Plate, siune as New Zealand. Chilled beef, ' fores, 3 3-Bd. to 3 7-Sd.; hinds, 43d. to sjd. 1 Home-grown beef was fully id. dearer, i while English, Scotch, and Dutch mutton : was Id. to lid. higher than in October, • November, December, 1912. ! Australian Lamb. Australian lamb Tiad been off the rnarkot since June, 1913. The new seasons stock, which Was of excellent quality, < went readily into Consumption. Arrivals were in excess Of corresponding month's 1 shipments. ' Importers met the market and sold steadily as shipments arrived, being satisfied with the prices. The highest price reached was. in .December, prime selling at 5 7-Bd. ( with seconds and inferior at s}d. After this prices eased 6omewhat, but sales of the large regular shipments from Octolwr to April were continued at 5 3-Bd.-5Jd. By July stocks were practically exhausted. The quality and weight of' Australian latnbs suited the requirements of the trade, and as the shipments greatly exceeded those of the previous season, Australian lambs governed the prices of New Zealand. The highest price reached, 5 7-Bd., was in December; the lowest, 5 D-Bd., April and May, the average price for. the season being Sid. The shipments for the Season total-led:—l9l3-14, 1,662,784 carcasses; 1912-13, 1,379,825 Carcasses; an excess of 282,959 carcasses. Australian Mutton. Shipments of mutton were made on an increased scale early in the season, and oame to a good market. Prices in October were 3 7-Bd., and rose to'4Jd. in January. After February, shipments declined, but with, heavy supplies of all olasses of meat in April and May prices fell to 3 3-Bd., but recovered in June to 3 7-Bd., selliiig at the'' same' pfico as New Zealand North Island. The lighter weight of Australian mutton found a market against the New, Zealaifds, .which were extra heavy. War. Tho declaration 6f war had the effect of enhancing the price of meat, especially beef, whioh was taken in large quantities by tho Army. Mutton benefited, and prices advanced to 4Jd. and sjd during August and September. The average price of Australian mutton prior to the war was 3 13-16 d. Tho shipments for the season totalled:—l9l3-14, 2,172,946 Carcasses; 1912-13, 2,705,150 Carcasses; a decreaso.of. 532,204 oarcasses. Autraliart Beef. . Shipments were in excess, of the previous season, only to the extent of. "71,618qr5., tho shipments being :—1913-14, 1,i74,066qr5.;. 1912-13,, 1,102,450qr5. ■,'■ Prices were on a higher level than previous season and Without the extreme fluctuations. The lowest price for crops was 3W., against last year s 2}d,; i l-16d. was reached in January, the highest last year being 3 746 d. For hinds, the lowest was 4 1-Sd., as against 3 1-Sd., and the highest 4id.; last year, 4 l-Bd. Since the war the price has advanced :--Cropß, 6id. to sjd.; ninds, 6Jd. to 6Jd. New Zealand Lamb. The season opened with excellent .prospects, although the previous year'from August had proved disastrous for buyers. Canterbury lambs had fallen from <i}q. in June to 5Jd. in August; North Island,, from 6 15-16 d. to 5 l-16d., yet buyers were prepared to operate on a higher basis than former. years. Some extremely high.- prices were Offered for first shipments, sales being effected at ,7d, and 7 3-Bd. o.i.f. This information being spread about in New Zealand, a false basis of. values was established. Buyers, however, were prepared to give prices equal to Jd. to 3d. above normal rates, and on the equivalent adVance on Australians lambs. Considerable sales were made on that basis. The persistent efforts Of the grower and shipper in insisting on extreme prices brought about a deadlock. Forward buyers retired from the market. With heavy shipments and roports of supplies being larger than usual, the good!' market was lost and fell away. New season's Wellington's were on the market the last week of January, and wei'o sold at 6|d. to 6£d., but fell to 6Jd. in February and 6Jd. in March. Canterbury's arrived in March to a weak market, the price being 6|d.) 1,448,100 Australian lambs had arrived Up to this date, and wore readily sold at sjd. to 5Jd. New Zealand shippers endeavoured to hold up "the market. Stocks commenced to accumulate in a dangerous manner, especially where farmers had shipped large quantities of unsuitable grades.' With arrivals in April of 572,000 New Zealand lambs. 138,000 Australian and 153,500 South American, a total of 863,500 carcasses in one month, the position became critical. South American lambs were sold at sjd. to Sjd-. Australian 5 8-Bd. to 51d.. New Zealand North Island at s|d. to 53d., Wellington's 5 13-l6d. to 6d., Southland's at same price, Canterbury's u/36 6Jd„ 36/425jd. to 6d., o/42 sfd. to 5Jd. _ Prices continued at about that level with slight variations to the close of the season in July. If it had not been for the early sales on a o.i.f. basis to the 1 numerous shopkeepers On a high level of values, and whose interest it was to pro--1 tect the market, prices would have fallen lower. There was every prospect of tho Collapse of 1909 being repeated. : The highest market price for New Zealand North Island lamb was 6{d. in January, the lowest s|d. in April-May. For Wellington and Southland lambs the highest point reached was 6Jd. in Janu- ; ary, the lowest 5 13-16 d. The average [ price for the above prior to the war was 5 13-16 d. > Canterbury Lamb. Highest 6}d. January, iowest 5Jd. for ■ 36/42, 5f 42/50, the average price prior to 1 tho war being, u/36, 36/42 5 15-16 d. ' The total shipments from New Zealand '. of lamb were:—l9l3-14, 3,456,000 carcasses ; ! 1912-13, 3,474,000 carcasses; a decrease of 18,000 carenssos. After the declaration of war the stoppage of chilled beef shipments, and - frozen beef being taken for war supplies, lambs recovered from id. to 3d. and close * at 6Jd. Should tho war bo continued, ' there is no appearance of lamb prices ' being much above normal, .the public in all instances showing signs that the ' cheaper and most economical articles will bo purchased. Should the war tormiflnfe speedily prices Will bo governed by tho , financial conditions resulting therefrom. > Thero are no signs of any shortogo in - the supply of meat generally. Lamb prices for next season will be governed j by thfi supplies and the purchasing powers . of the public. It will not bo wise lo . look for extreme prices, but rather to . meet the market demand by slcady and persistent selling from day to day. New Zealand Mutton. ' From various causes New Zealand muti ton was not so suitable for the markets . generally. The delay caused by the s strike' is credited with tho putting off of ' tho shearing, this resulting in the sheep . growing to too heavy weights when , 'killed, • , -■. ■ , : . flffin Ps!tojißr r: .tq .ife^r- 9 : .""H

was firm, prices rising from 4 3-Bd. to sd. for North Island mutton, Wellingtons commanding little or no premium at these prices. Canterbury mutton wa6 not quoted from November to March. After January the total weight of meat arriving was very great, chilled beef in particular dominating the position. By February, prices for North Island mutton ranged at i 3-Bd. with an eighth premium for "Wellington's. As this was very different to the sd. promised to farmers who shipped on consignment, stocks were held for a better market, in sonic instances for three months, with the usual" result, that lower prices had to be taken. In April, 541,000 carcasses New Zealand mutton arrived to a market overstocked

with meat, along with 242,000 carcasses ' from Australia, and 185,500 carcasses from ( South America—total, 968,500 carcasses. These, with heavy arrivals of lamb and ( especially of South American beef, broke the market. Prices fell to 33d. for North Island mutton, 4d. for Wellington prime weights; Canterbury's selling at 4*d. to 3jd., according to weight. With lighter arrivals the market recovered slightly to the extent of an ) eighth to three-sixteenths, when the de- ' claration of war depleted the stocks of , beef, sehdihg the trade on to mutton. Prices for New Zealand mutton advanced ■ to sd. and s}d. ] Prior to the war the highest price of ] North Island mutton was 5d., lowest 33d., ; the average price for the season being ; 4 3-Bd. ■Wellington mutton, highest price ■ 5d., lowest 4d., average * 7-16 d. Canter- ' bury mutton, highest prioe 4{d., lowest 3Jd., average 4id. New Zealand eweß: Considerable quantities have been imSorted, aDd owing to the general igh price of meat, were in demand, the latter running for light-weight ewes, not fat. Prices ' were on a, par with Australian mutton, And reached 4id. in January, falling to 3}d in May. The shipments of mutton from New Zealand for the season totalled: -1913-14, 2,307,000 ■ Carcasses; 1912-13, 2,321,008 carcasses; a decrease of 14,000 cafcaesa. New Zealand Beef. This has been in much' greater evidence, being almost double that of the previous eeasOn. The quality wae excellent, and there Was an almost total absence of "bohe taint." Neither the dressing of the beef n6r mutton id yet up to River Plate standard. The price of fores, which was BJd. in OotobeT, rose to id.iii January and February, when moat in demand, falling to 3 3-Bd. in the Bummer months. Hinds have kept at a steady price through the year at about 4ld. This is all the more satisfactory when compared, with the fluctuations of chilled beef. Shipments of New Zealand beef" were:—l9l344, 248,400 quarters ; 1012-13, 130,000 quarters') ah inorease Of 118,400 quarter^. South American Lamb. Contrary to expectations, the shipments Of lamb were on a liberal scale, the total for the season being 781,374 carcasses, as against 746,330 carcasses for the previous season. Following the usual Methods of not holding stocks in store in this country, they wore marketed at satisfactory prices, the price for light lambs opening at sid,, the lowest being 5 3-Bd., heavy lambs, old. down to sd. Shipments from Uruguay WW6 made in Increased quantities. The quality is of the poorest, but llhe light-weights and the low price enable them to be readily sold against Australians. South American Mutton. This was in reduced quantities, the total shipments amounting t0:—1913-14, 1,793,763 carcasses! 1912-13, 2,35?,526 Ca'rcastesj a decrease of 563,760 carcasses. There was a great scarcity of light sheep, which Were sold at 4Jd. Heavy South American sheep varied in price from 4 3-8(1. to 3jd., the average price, however, was 4d., which was more satisfactory than other Countries. South American Frozen Beef, Supplies were considerably curtailed, the. developmenit of the trade being in chilled beer. Shipments only totalled!— 1913-14, 1,106,771 quarters; 1912-13, 1,041,590 quarters; a decrease of 834,81(1 quarters. Prices for fores varied according to the season's demands, viz.: M to 4d„ the average' being '3 11-16 d.' Hinds remained steady. ■ prices ruling at 4Jd. to 4jd, Chilled Beef. This again dominated the market, shipments reaching the great total Of 3,226,993 quarters, as against 2,768,000 quarters in 1912-13. When it is borne in mind that these figures are equal to 1 about 13,000,000 oarcasses of mutton and lamb, the preponderance of chilled beef may be realised. The quality was excellent. The dressing and marketing of ' the goods left nothing better to be desired. I'he quantity was more than i the market could absorb at normal prices. Chilled fores were sold, frequently below, the price of frozen, prices varying from 3d. to 4Jd; Honds sold better, but with much variation, viz.,'4fd. to 53d. Chilled beef has not benefited to the same extent as' frozen, and since the outbreak of war prices Oven on a bare market have been frequently lower. Shipment* of beof from South America are mow resumed, but a large percentage is being seat forward frozen hard. PROPORTION OF CATTLE IN VARIOUS COUNTRIES TO SHIPMENTS. Exports to U.K. only, Oot„ 1913, PorCattle at to centlast census; Sept., 1914. age. S. America 36,692,602 1,087,709 2.96 Australia 11,577,259 339,512 2.93 New Zealand 2,020,171 65,260 3.22 50,290,032 1,492,471 2.96 Future Prospects. While the war lasts there will be a great demand for frozen beef, but supplies from all quarters are large, and the high price will bring' forward all available supplies. There dofid not seem to be any indication that the demand will exceed the supply. Beef will continue firm at present prices from Sd. to Bid. c.i.f. The demand for beef on account of the war will relieve the market. Mutton Will benefit, and prices will during the period remain on a high level. Higher qualities will not benefit to the Same extent, the lower qualities and commoner parts having already advanced to a higher proportion than best joints. A more or less level of prices has been established. Lambs may. be slightly higher, but extreme prioej will put these out of consumption, as has been the case with all 1 the moro expensive artiolcs of food. ! Home Supplies. Home supplies, according to the latest • advices, show an increase for Great Bri- \ tain and Ireland, viz.!— Cattle ... 12,143,638—an increase of 247,160 Sheep ... 27,882,668-an increase of 330,528 Pigs 3,604,312-an increase of 726,341 From October to. December the general , scarcity of supplies, including HOtne- . grown, had the effect of increasing prices , of beef from Id. to Jd. pec !»■ Mutton 1 advanced from Id. to lid. per lb. From January, 1914, this advance *as lost owing to increased supplies, and prices from January to July have only averaged par of the previous year, frequently ' being a shade lower. 1 Live stook, cattle, sheep, pigs, all show considerable increase, and with favour- ' .able seasons and abundance of feed eup- [ plies have been fully, equal to the de- : mand. . Since the war prices have not advanced ; in proportion to frozen, and with abund--1 aucc of winter feed there is no indication • that high prices will rule. Late quota- ( tions are:—

English beef, 7d. to 7}d. A year age— sjd. to 6d. Scotoh beef, 7}d. to 7jd. A year ftgo6jd. to6}d.. . ', Irish beef, 63d. to 71d. . A year ago--63d. to-73d. English mutton, 71d. to BSd. A year ago—fijd. to "Id. Dutch supplies came on the market earlier and 111 increased quantities; prices now are:— Dutch mutton, "d. to 7Jd. A year ago— 63d. to 71d. The future poinls to abundance of supplies from all quarters. Should tlio present high level of prices be maintained, growers will take advantage of this, and it will be safe to estimate that liiore than the averse available stock will be marketed. High prices invariably increase supplies. It is hoped that growers will recognise these facts, Present markots are good. The distant markets will be governed hy conditions At. .present bejond the postimlity of Afiy forecast,

Great Britain will be the best market for some time. America, •■■:- : , • • ■<:.■ ■■ ■ •"■ The opening up of the American trade ■has been disappointing, and does not promise much for New Zealand. It has already been proved that Great Britain is a better market on the average, and that the TLS.A.'oan only buy when prices ire low. A better trade, which is likely to expand, has been done with Australia, the lower price and the earlier season falling in with American requirements, The large trade with the River Plate, where the tJ.S.A. have their own houses, has not come up to cipeetations, the total shipments for the year being:—River Plate to TT.S.A., 600,000 quarters beef, 104,000 carcasses mutton. 61.000 carcasses lamb.