OUR MEAT IN LONDON

Dominion, Volume 9, Issue 2627, 24 November 1915, Page 6

OUR MEAT IN LONDON

QUESTION OF PROFITS

ITEMS IN; HEAVY: COST

'A' great? many .people! iflfcresteS in the meat export irado as producers have been under the impression that very large profitß are being made, by somebody out of the sale in London of New Zealand meat, purchased by the Government. An interesting' letter on this subject, received from 'their' London agents by'a meat exporting company in New Zealand,'has'come to the Prime Minister. .This letter refers to a hitherto uncounted item in the cost of meat to the Board of Trade. It'appears that the' Army authorities require a big reserve of 300,000 carcasses to be perpetiially maintained,' and fiho storage charges ; on'this big amount make o heavy addition; to the cost of all the meat. An extract from the letter follows : ;

"We were under tihe impression at the time that the prices fixed for Government meat for the first few months must have resulted in large profits, but wo now begin to doubt whether this has really beon the case, owing to the ■ enormous charges incurred through inorease in freights, demurrage on vessels awaiting discharge, storage difficulties, etc. If we are right in our conclusion that demurrage has been paid the amount must have beon enormous owing to the difficulties of discharge, many vessels being held up for weeks. Thero.is no doubt also that storage expenses must have been very heavy as it was wie policy to fill all stores as a huge reserve before releasing any meat to the public. . The arrivals have been all alont; ample to keep this large reserve always intact, consequent,lv old cargoes only have been released to nuke room for new. These storage charges have accumulated to .» considerable extent on all meat realised. We gather also that considerable storage charges must have; accrued on. your side. . ■

"On the whole, the early months must have been remunerative to the authorities, but not to the extent at first estimated, while the present prices can little more than clear the cost, if they do that.

"At the present time no New, Zealand mutton is being realised, and only limited' quantities of New Zealand lamb. ■With regard to Australian meat large quantities of ewes and lamb are being offerod for sale, but only modorate quantities of wethers.. Stores are heavy and arrivals large, and on all-round .reduction in values may occur this autumn, although we are inclined to "tliink the'present prices should, if possible, be maintained."