The Dominion WEDNESDAY, OCTOBER 18, 1916. THE MENACE TO OUR MEAT TRADE

Dominion, Volume 10, Issue 2905, 18 October 1916, Page 4

The Dominion WEDNESDAY, OCTOBER 18, 1916. THE MENACE TO OUR MEAT TRADE

The prominence which Has been given of late to matters affecting our meat export trade is fully warranted by the importance of the issues involved. It is not merely the farmer, but the whole community that.is concerned with tho outcome of the situation created by the conditions arising out of the commandeering of the Dominion output for overseas markets. The complications which are the result of the procedure followed at tho request of the Imperial authorities have been so fully explained in repent issues that it is not necessary to recapitulate the details again on the present occasion. The main fact to be noted for the purpose of the moment is that the surplus mutton (and practically all the lamb) not required by the Imperial authorities for the troops at the front and . in "training is handed over where requested to agents of the consignors in London in proportion to the amount shipped by each. This in consequence of the shortage created In London by the quantity taken by the Imperial authorities has opened tho door to a manipulation of the available supply to the advantage of what are believed to bo big foreign meat' trusts or their agents. The process has been explained. Representatives or agents of these people buy from the farmer at full market rates, and frequently above those rates; sell as required to the Imperial authorities, often at a loss, recouping themselves . out of the prices they secure on the surplus of the shipments which they have the right to claim in London. We have pointed out in "previous articles the injury likely to no done to our farmers and the New Zealand export ■ companies through this diversion of our meat exports from their accustomed channels on the London market.' The regular and old-estab-lished customers for our meat can no longer secure the supplies they require from the people who used to supply them. The agents of the big foreign trusts, or organisations associated with them, are gradually gaining a control of the London market which is likely to seriously prejudice the position of the New Zealand farmer and moat exporter after tho war, when the existing commandcering arrangement ceases. We have discussed that phase of the position before and need not now repeat ourselves. Mr. Massey is endeavouring to secure an alteration which may minimise tho danger, and we must await the result of his efforts.

But in the meantime tho farmer who has fat stock to sell requires to give thought to what is happening hero in New Zealand. We published a few days ago an interview with a. gentleman who went from. New Zealand to America to take up farming. He described very clearly the position of tho farmers in the district in which he had selected to settle as tho result of the operations of the big American meat' trusts. Ho found tho farmer to be entirely at the mercy of the trusts. The procedure which had been followed by the trusts was to outbid the smaller buyers of fat stock until such time as they had squeezed them out or absorbed their businesses! and'

then to fix practically whatever price thoy pleased. The restrictions imposed on the farmer regarding the disposal of his stock were so strict and so prejudicial to his interests, that the New Zealandor quoted thought it a very good thing to leave farming in America alone, and returned to the Dominion. The point to be noted is that the trusts' paid higher prices than anyone else until they gained control of the situation, and then recouped themselves at the farmers' expense. What happened in America is to all appear-

auces beginning in New Zealand. Thebig American trusts or organisations associated with them are unquestionably at work to secure control or a powerful hold on the Aew Zealand export of meat. They are at work at both ends. In New Zealand they are paying while it ernls their purpose high prices—in some cases seemingly unprofitable prices for fat stock, and they are using the means thus gained to strengthen their' hold on the English market. For the moment it is a profitable business for the New Zealand farmer, who sells his fat stock at the farm or in the' saleyards to the highest bidder. If the agents of the meat trusts or associated organisations bid higher than seems profitable in view of the prices paid by the Imperial authorities for commandeered meat, then so much the better for the farmer, who secures the extra profits. But what of the i ST'V': t!l6 re S ular buyers fail to £ j , lr S l- °und, and exporters pnd the , market dominated uy the big trusts? The situation is one calling for the most careful thought. Owing to the exceptional conditions imposed on tho meat exporters as the result of tho action of tho Imperial authorities in regard to New Zealand meat, a solution is difficult, if not impossible, to discover, except through a readjustment in the terms under which our meat is taken. < Mr. Massey now has that matter in hand. In. the meantime the farmer should not be led into a false Bon.* 0 f security by the fact that he may be offered fancy prices ior his fat stock from unexpected quarters.