BEEF PRICES

Dominion, Volume 8, Issue 2422, 30 March 1915, Page 6

BEEF PRICES

GRIEVANCE OF PRODUCERS

AGAINST MEAT COMPANIES

SHORT SUPPLY OF SHIPS

Some of the grievances which growers of meat for export have ill mind at present concerning the working of the Imperial meat supply schemo were laid 'before the Prime Minister by a deputation of beef producers from the Manawatu Rangitikei, and Horowhemia districts yesterday. The Primo Minister also explained the position very fully from the point of view of the Government. The deputation was the outcome of a meeting held in Palmerston last week.

Mr. D. Buick, in introducing the deputation, said that it consisted of producers of beef, who considered that the.y had a decided _ grievance against tho freezing companies. The producers considered, in effect, that they wero being exploited. Since the little agitation of last week, lie had been informed that one of the Wellington companies had raised their prices by 2s. por hundredweight. The deputation also thought they had a grievance against tho Government, in that there was no representation of farmers at the conference held regarding tho Imperial meat supply scheme. The Prime Minister said that tho conference was arranged days before tho Imperial authorities took over the meat supply. The conference . was called, not to consider the prices of meat, but the shortage of shipping. Later, when the Imperial authorities asked lor all 1 the meat exported from New Zealand, this matter was brought before tho same conference. He read the names of twelve farmers present at the meeting, and added: "Now, if that was not a good representation of farmers, I don't know ivhat I am talking about. You would not find a more representative lot of farmers at any couferenco in New Zealand." Companies' Share Too Large. ' Mr. J. Coring Johnston, the first speaker 011 beiialf of the deputation, said that they were not objecting to tho prices fixed, which they considered fair and reasonable, but they thought the freezing companies were exploiting the farmers, and endeavouring to get someI tiling more than they were entitled to have.

Mr. Massey: Are they charging more for killing and freezing than they were before?

Mr. Johnston said that they were not, but since the schedule had come out, they were offering less for beef than they had been before. Tho farmers were satisfied with the schedule prices, but if there was any advantage to be gained as between what the Imperial Government paid and what tho farmers received, this gain should go to the Government, and not to the freezing companies. The companies were not offering as much as they were due to rcceive, and the difference iu. the prices would amount to as much as £1 a head on fat cattle. In reply to a question from Mr. Massey, ho said that lie had not this season put meat through the works on his own account, but he had tried to get space and failed, and finally had sold to a company's buyer at a less price than he would have got under tho schedule. The producers which the deputation represented wero prepared to freeze on their own acoount 2500 head of cattle during the months of April, May, and June, if they could get space for them. Mr. Massey: Hive you applied for spacer 1

Mr. Johnston: Individually we have applied. He added that the result of tho applications would show whether the freezing companies were not refusing space to farmers in order to make bigger profits for themselves.

In Thsir Own Hands. Mr. Masse;: Does not this occur to you—that if you farmers refuse to sell to inidcllo men you will get the use of the freezing works instead of tliem. Ho added that ho had communicated with all tho freezing companies in New Zealand, and of twenty companies who had answered his inquiry nineteen had stated that they were affording facilities to farmers to freeze meat on their own account.

51r. Johnston: Would it be possible to ask the freezing companies how much meat they have purchased at 38a. per hundred since the schedule of prices came out, why they were purchasing at 38s. when, they had not space .for farmers' stock, and why since this agitation had arisen one company had advanced its price by 2s P Mr. Massey said he was quite willing to ask the companies how much beef they had bought since the schedule was published, and aft what price. Cood Prices. Mr. R. A. M'Kenzio said that beef producers were faced with the necessity of getting rid of their cattle in the fall of tho year, and this war and the Government scheme had. struck them at a time when they had all a lot of fat cattle on hand.

Mr. Massey: What would you have dono if this war had not happened? Mr. M'Kcnzie: Wo would have done the same as we are doing now, I suppose. The same amount of space would have been available. He went on to saythat growers were in favour of tho Government prices. The Government price of 4-3 d. for prime ox beef worked out at £16 12s. Id. for, a TOOlb.-weight bullock.

Mr. Massoy: Did you ever get £16 12s. Id. for a TOOlb.-weight bullock before ?

Mr. M'Kenzie: No, but we never had a war like this before.

Mr. Mas6ey: There are very few farmers who want to take advantage of the war in order to make money and I hope you don't. _ • _ Mr. M'Kenzie assured him that the beef producers had no such desire. He went on to explain that sundry charges incidental to sale and freezing amounted to about £1 19s. sd. on a. beast worth £16 12s. Id., making the not price to the farmer £14 12s. Btl. This worked out at £2 Is. lOd. per 1001b. for prime ox beef. But the companies were only offering 38s. He would suggest that they ought to pay £2 per 1001b., which would leave them a fair margin of profit over and above freezing charges. Mr. Massey: Very well. What do you want me to do ? Mr. M'Kenzie said he would suggest that the Government should direct the companies to give prices in proportion to the amount paid by the Government for the meat, or to give farmers a reasonable chance of freezing their own •stock.

Mr. \V. B. Pearce said that ho had been trying to get some cattle frozen for three months. Before the Government scheme was in operation ho was offered £2 2s. per 1001b., contingent on the buyer being able to get space in the works, but as the buyer could not get space the stock were left on his hands. Since tho operation of the scheme the best offer he had received was 375. Gd. per 1001b. A farmer had no chance of getting stock away.' lie did not think ho would get any of his stock away for two or three months.

PRIME MINISTER'S REPLY. THE ROOT OF THE TROUBLE. Mr. Massey said he was very glad the deputation had come along,, as it would uivc liiffl " iwrnaldr. clmuw of clcufiiijj HP poiuts about which some of ths »ro-

ducers seemed to be misinformed. As to the first statement that there was no representation of farmers 011 the conference, the fact was that two-thirds of the men present were farmers. Many of the producers did not seem to realise that the whole of their trouble _ arose through tho scarcity of ships owing to all tho German and Austrian mercantile marine being out of action, and to the commandeering of 10 per cent, of the world's shipping for war purposes. He explained what the Now Zealand Government had done to ovcrcomo tho difficulty about getting our exports away. As tho result of what liis Government had done tho supply of ships up till tho end of .February had been ample, and this was shown by the fact that up till that time our exports had been a million freight carcasses more than for the same period of last season. This extra million carcasses would load ten extra ships. However, 110 had to admit that in this month enough space had not been _ available. The.y had sent away two ships loaded to the hatches, and there were six ships on the berth loading. Next month they should have at least two ships more than for the month of March. The Imperial Board of Trade had taken the matter in hand. Ho had urged on (them repeatedly that they should find more snips for the Now Zealand trade, but even they were not able to do all that they wished. Higher Freights, "I think a mistako was mado at the beginning of the war," he said, "in not ! granting increased freights for meat from New Zealand. 1 didn't say so at tho time, and I didn't think so at the time. The New Zealand shippers refused to agree to increased freights. Now, vou have to remember that the shipping companies are not philanthropists ; they are out to make profits where they can get them. In Australia the freights were raised 25 per cent., and in the Argentine about 50 por cent, or more. From the Argentine there does not seem to have been any fixed rate. Shipowners could get pretty well what the;? liked. The consequence was that shipowners showed a tendency to send their ships to Argentine or Australia in preference to New Zealand. Whatever we may think a,bout it that is the fact. The Board of Trade saw the difficulty, and decided that if they were to get ships to carry our meat the.y must pay extra freights, even if the extra rates seemed exorbitant." He said that now the extra freights were offered ho hoped that the ships would be offering. Tho difficulty under which producers and shippers wero working would, however, last for two months longer, but after Juno 1 tho supply of ships should be ample., He explained that since the deputation had been in the room his secretary had telephoned to the Wellington Meat Export Company and tho Gear Meat Company asking what prices they were paying for prim© ox oeef. Iu both, eases the prime was £2 per 1001b. "in the paddock." Mr. M'Kenzio: We feel quite pleased about thati.

Mr. Massey said that if there was anything he could do to make the meat business run smoothly lie would do it. He explained, also, that the freezing companies were in this way losers by the operation of the Government scheme —that they would have to break connections at Home which they had worked at for six years to mako. Mr. Buick and members of the deputation expressed satisfaction with Air. Massey's reply and explanation.