SHIPPING SHORTAGE

Dominion, Volume 10, Issue 3086, 17 May 1917, Page 6

SHIPPING SHORTAGE

THE PRODUCERS' PROBLEM HEAVY STOCKS OP MEAT AND CHEESE The seriousness of the difficulties arising from the shortage of shipping space is recognised in shipping and commercial circles in Wellington, but there is a tendency on the part of the business men to deprecate anything in tho nature of alarm at the present stage. The shipping arrangements made by the Imperial authorities, who now control practically all the vessels trading to New Zealand, have yet to be announced, and exporters are hoping that the responsible men in London will make a special effort to lift the heavy stocks of Imperial produce— meat, cheese, butter, and wool —now lying in this country. If the visible supply of shipping is not increased, the outlook will be very grave indeed. There is no room for difference of opinion nn that point. The official figures show that at tho end of last month there were 2,655,000 carcases in store in New Zealand, for which no allocation of shipping space had been made. In addition there was a certain quantity of meat for which space was expected to be available within a short period. The cold ■stores were capable ofholding 4,870,071 carcases, so that there was a substantial margin of storage; space still at tho disposal of tho farmers and the freezing companies. In regard to dairy produce, the cool stores contained last week nearly 150,000 crates of cheeso, and about 260,000 boxes of butter. Theso I stores, also, were not full, and it was estimated that'they would not bo taxed beyond their capacity during the present season, which will close in the ordinary seasonal course during the next few weeks. The immediate problem of tho factories and producers in relation to the stocks in store is that of payment on- account. The, produce represents an enormous amount of capital, and as the Imperial authorities make their payments f.0.b., difficulty is being felt in many quarters. But it appears that the Government is making an arrangement that will assist the , sellers by providing money on account.

The crux of the matter is the outlook for the coming season. If additional shipping is not provided the stores will not be" empty when the new season opens, and they are likely to be filled before the se-ason has run many months. Then the freezing works and tho dairy factories will have to refuse to handle supplies', and the farmers of Now Zealand will bo -up against a problem that they have not had to face- in a. serious form for a- generation. They will not bo able to sell their meat and milk. A reporter who made some inquiries on the point in Wellington yesterday gathered that exporters andjshipping men are not inclined to believe that a crisis of tho dimensions indicated is going to arise. But they assume that preference will continue to bo given to, meat-and wool in the allocation of the available shipping space, and this may mean troublefor the dairy farmers, particularly in respect to butter. The Imperial authorities want cheese for the Army. They appear to regard butter as 'a luxury. \

"No exact information regarding the prospects for the coming season, is available," gentleman. "We cannot tell how much spaco will be available, and in the absence of figures bearing on that point it is impossible to say what difficulties are going to confront the exporters. My own impression, based to some small extent on private: advices, uift mitre' generally on ! the known needs of / tho United Kingdom, is that arrange'ments will be made to movo our meat, wool, and cheese. Britain would be dra-wing her supplies from points nearer home than •New Zealand if she was able to do so, but I think that the situation will demand the use of all the availablesources of supply. New Zealand among the rest. There is a. world shortage of meat, wool, and cheese. If Britain could not get our stuff, of course, she would have to do without it.' But I believe ehe will be able to get it. Tho submarine campaign is at a period of maximum intensity, and experience suggests that it will decline in effectiveness presently, while-the active cooperation.of America is bound to ease the shipping problem. I rn'ay be wrong, but the alarmists have no more information than I have."

A /gentleman representative of pro-, ducing interests said that he thought the farmers could await the development of the situation without very much anxiety. They had enjoyed two very good seasons, and they were- uow finding increasing difficulty in maintaining their full output, owing to tbo shortage of labour. If they were required to relax their efforts during tlie coming season, owing to lack of shipping space, they would lose some money, but the check would not be disastrous, '-provided that the farmers met it intelligently. There would' be a definite ultimate advantage in the increase of flocks and herds. This gontlamau added that ho felt sure Mr. Massey a.nd Sir Joseph Ward were Uoln;; their utmost to relieve the position, and ho had high hopes of a substantial increase in New Zealand's share of the ships during the second half of the present year.

The suggestion that additional cool storage should bo provided in anticipation of a shortage of shipping next season does not meet with much favour in any quarter. The Dominion's capacity for storing frozen meat and dairy produce has been increased substantially during the last two jears, but fcljis has been done mainly in the way of ordinary development. The construction of cool stores specially to meet a passing difficulty would involve a permanent charge against the industries concerned, and moreover it would be a speculative .venture. If the shortage of shipping continued beyond a certain period, the extra stores, filled with perishable products, would become merely an additional embarrassment. The farmers would be worse off than if they had kept their stock of beef on the hoof and reduced the production of the dairies.