TUESDAY, JANUARY 27, 1920. ENDING THE MEAT COMMANDEER

Dominion, Volume 13, Issue 104, 27 January 1920, Page 6

TUESDAY, JANUARY 27, 1920. ENDING THE MEAT COMMANDEER

Theke care producers in the Dominion nu doubt welcomed the announcement that the British Government has decided not to enter into any further contract for the purchase of frozen meat after June 30 next, when the present commandeer terminates. Even those who are best satisfied to have the matter settled in this way are bound to recognise, however, that the return to normal conditions of the meat export trade raises problems which call for timely and serious consideration. The advantages of the commandeer will perhaps be more apparent to many farmers and exporters in this country after it has ceased than they were while it was still in operation. In some of its detail features the arrangement was admittedly open to ad-, verse criticism, but on the whole it worked well, and conferred material benefits on producers and cm tlic whole population of the Dominion. The commandeer established the only conditions in winch it was possible to give producers an early and assured Return for each sortson's output/ ft has been complained at times that New Zealand .fa/mcrs ought to have received higtier prices for their meat, but these complaints are discounted, to some extent at least, when account is taken of the heavy expenses incurred by the British Government in the way of shipping, freights, and storage charges here and in Great Britain. With its shortcomings, the commandeer established settled conditions of profitable trading at a time when these were hopelessly out of the reach oi unaided private enterprise. It is only fair and reasonable to keep such facts in mind when the less advantageous aspects of the commandeer arc paraded. It is a matter of common foresight, also, to recognise that with the termination of the commandeer a move will be madj! from firm to uncertain ground, and that it is now incumbent on producers to give serious thought to questions in regard to which they were relieved of all anxiety while the commandeer remained in' force.

Now that a definite period is se(tto the Government purchase of meat, it becomes very necessary, as the PniitE Minister observed the other day, that farmers' unions and other organisations of producers should thoroughly consider the very important change they will have to meet and dealt with at the commencement of the 1920-21 season. Such conditions of_meat export and marketing as obtained before the war will not, of course, be automatically restored. One of the most urgent questions raised in this connection concerns the clearance of the New Zealand stores. The Prime Minister estimates that six million carcasses will be placed in the cold stores this year (from January 1 to June 'JO). There were approximately four million carcasses in store at the end of last year, and he is of opinion that of the total quantity of ten million carcasses thus accounted for, eight million at most will bo lifted by the end of the present year. This means that in the most favourable circumstances two million carcasses of Impcrial_ meat —an amount equal to one-third of the annual output of the Dominion —will remain in store when another new season opens at the beginning of next year and the restoration of the export trade to private c-rintrol actually comes into effect. Tf expectations are realised and eight million carcasses arc lifted this year it ought to be possible during 1921 to effect a complete clearance of both Imperial and new season's meat. This, however, assumes a favourable combination of circumstances as regards the supply of shipping and in other respects which is not by any ii-.ans a foregone conclusion. At best, the position is sufficiently serious. If tho Government-purchased meat were given first call on shipping spare the interests of local prodiioers, _ of course, would suffer heavily, s : nco prices of necessity would bo determined with an eye to delayed returns and mounting costs of storage. Farmers who export their own meat would be no better off in these conditions than those who soil in the Dominion. On the''oilier hand the British Government has paid and is paying heavily for storage, and naturally will be anxious to set a period to its cutlay under this head as soon as possible. Tt will be no easy matter in the circumstances to arrive at an arrangement equitable to all parties, but producers clearly ought to press for an early and definite understanding between the N'ew Zealand Government, and tho British Government in regard to the allocation of shipping space in 1921. They will thus ascertain in good time how they will stand when private control is restored, and be enabled to take their- measures accordingly. Unfortunately, the complex questions which centre in thi! clearance of the local stores are typical of the situation as a whole. Even the speediest clearance of tho local stores, for instance, will not necessarily lead to the establishment of favourable market conditions in Great Britain. The British authorities are being accused at present of keeping up the price of meat to such an extent as tolimif normal consumption. Existing difficulties aVe bound to be intensified in this way. On the other hand the market may be disorganiffd very seriously for a time if tho I policy of restriction is suddenly

abandoned. The factor of shipping freights also commands attention. A substantial incrcaso in freights on Government cargoes to Great Britain is reported in one of to-day's cablegrams, and *.inco the increase applies to cargoes of commandeered produce it will doubtless remain in force when the commandeer has been lifted. Such uncertainties as the outlook holds, of course, make it all the more necessary that producers should accept the Piiisir Minister's advice and give timely and thoughtful consideration to the important change they will have to meet and deal with at the beginning of the next export season.