BRITISH MEAT SUPPLIES

Dominion, Volume 13, Issue 123, 18 February 1920, Page 7

BRITISH MEAT SUPPLIES

PRODUCTION IN THE DOMINIONS FUTURE PLANS REPORT OF BOARD OF TRADE COMMITTEE IMPORTANT RECOMMENDATIONS Writing muter date December 24 (ho London correspondent of tho Melbourne "Ase" says There are some mailers which are of considerable interest to the Australian meat export trade in the rcnort of the committee appointed by the Hoard of Trade "to consider and report on the means of securing sufficient meat supolies i'or the United Kingdom at reasonable prices, with special regard to the develomnent of meat production in the United Kingdom and in the British overseas dominion;, and to tho protection of British markets and of producing countries within the Empire from domination bv foreign organisations." Beforo the war the yearly consumption of beef, veal. mutton, and lamb in tho United Kinedom was about 1,811,000 tons, of which HO ner cent, was raised in the United Kingdom and 40 per cent, imported. During the war there was a considerable reduction in meat supplies, both home-grown and imported, and for two years a system of rationing consumers (which was not abolished until a few days ago) was enforced in Great Britain. The rationing system materially reduced consumption, and compelled the neonlo to alter their diet, and find nibstitutes for meat. But the committee do not anticipate that the fact that the neonle have become accustomed to eat less meat than formerly will affect the nggregate consumption. in future years. as the higher wages which the working classes are receiving will probably result in their eating more meat than they did before the war. Meat Exporting Countries.

Concerning the supplies of meat which are likelv to be available in foreign countries. the report states: "South America i is the ervat present source of meat' cudply. In the Argentine Republic there are' about 29,000,000 cattle (the number baring remained almost stationary (luring the war), and between 50.000,000 and 60,000,000 sheep; about 45 per cent, of the cattle are natirc. Uruguay has about 8,000,000 cattle and about 11,000,000 sheep. Chilian Patagonia has.about 4,000,000 sheep. Brazil lias an unknown number of cattle, usually estimated at about 30,000,000, but the great majority of them are not suitable for the British market, though the meat, like that of Uruguay, is acceptable in Continental markets. Venezuela has during the war exjiortcd frozen moat to Prance, and Columbia, though at present undeveloped, offers the possibility of a trade of moderate dimensions. The American meat companies hare also begun to develop Paraguay. Central America has a large number of wild and semi-wild .cattle, but the possibilities of an export trade are very uncertain for a long time. China (Yangtze Valley and Manchuria) has cattle of fair quality,

and lias done nil export trade to Prance and Italy. Madagascar has also a freezing works, from which moderate quantities have been exported to France. The effective meat-exporting capacity of those foreign countries which need to'be taken into consideration at present is as follows, including output from works now under construction Beef. Mutton. Tons. Tons. Argentine and Uruguay 600,000 70,000 Patagonia (Argentina and Chile) - 30,000 Brazil 250,000 — Venezuela 8,000 — Paraguay 5,000 — Madagascar 8,000 871,000 100,000 The report gives the following totals as tho probable yearly surplus meat available for export from the oversea Dominions for the next few years:— Beef. Muttcj. Tons. Tons. Canada 25,000 — Australia 120,000 70,000 New Zealand <10,000 100,000 South Africa 25,000 — 210,000 230,000 Meat Importing Countries. In summarising the world's supply-and demand the committee states: "Oil the assumption that sufficient shipping were availablo the meat capacity of the supplying countries in the immediate future would be about 1,400,000 tons a year, of which about 330,000 tons would be mutton. Tho requirements of the United Kingdom for imported meat may be taken at 750,000 tons a year, those of Franco ftt 250,000 tons, those of Italy at 150,000 tons those of Belgium at 50,000 tons, and tnose of the United States at 100,000 tons—or 1,300,000 tons a year in all. This total exceeds the present carrying eapneity of the worlds insulated ships, even assuming a normal rate of loading and discharge, and though in a. couple of years', time there will apparently be a surplus of shipping space for the supply of new demands, it cannot bo realised to tlu full if the present rato of handling ships is continued. The French, Belgian and Italian requirements cannot bo met in full to-day except with tho assistance of British and American tonnage, and then no steamers will be left for the supply of other Continental countries. On the other hand it is not unreasonable to expect that British ship owners will make a further clTort to cope with the demands for insulated tonnage. "Tho consumption of chilled beef ,nt tho expense of frozen beef was progressing rapidly beforo the war, and unless and until chilled beef can he brought from the antipodes Australasian frozen beef will be at a disadvantage in British markets compared with Argentino chilled beef. Beef from "Brazil and Uruguay, and mutton from the Argentine and Patagonia are best suited for Continental markets, and tho more highly priced Australian and New Zealand mutton and lamb will tend to exclude foreign mutton and lamb from the markets of tho United Kingdom. . Meat will, in fact, tend to bo distributed in tho future as iu the past according to its quality and price, and tho tasto of the consumer. 13efore tho war about one-

third of the beef and veal consumed in tho United Kingdom came from foreign countries, and this proportion can mainly bo reduced by an increase of our home-grown supplies. On the other hand only 12 per cent of the mutton and lamb came from outside the Empire, and tho tendency is that this will diminish." Government Control of Empire Supplies. Reference is made in the report to a nroDosal to extend for a period of five years the Imperial Government's contracts with the Australian and New Zealand Governments made during the war, to mirehaso all their exportable surplus meat, "so that prbducers might come safelv through a time when trading would lio uncertain, and bo encouraged to expand' their production pending the restoration of normal conditions." Tho renort continues:—"Somo of tho witnesses who amicared boforo us even proposed that all importation of meat should be conducted nermanently under Government control. Such plans could only bo carried into effect with tho co-operation of the. dominion Governments, and so far not one of them has shown any desire io eimase in such far-reaching operations, although anv terms which might be as:rced would guarantee nn assured market; nnd a reasonable profit to the producers and the freezing works. The New Zealand Government is tho only one which has asked for any extension, ami that a limited one, of the original contracts. The Government of Queensland is understood to be willing to sell to the Imperial Government surplus cattin from the Government stations on fav ; ourablo terms, but such n salo would, of course, represent only a. very small part of the output of tho State." Tho Government of Victoria has cabled:—"Gov. ernmeniji here, having consulted all produoine jntoiosts, considor tho best moth-

od of increasing meat production will 1)0 oijon market immediately on termination of uresent contract with Imperial Goteminent, three months date after termination of war, provided .insulated snace guaranteed equal what would ho urovided if contract extended for period of Imncrial Government control shipping. Tailing open market with full .shinning facilities, Government consider that anv extended contract should provide liricea in harmony with retail, ralo prevailing in United Kingdom, and with nrices being received in America and oilier sources of supply. Broadly speaking. Victoria could greatly increase meat exnorts if prices enabled producers lo pay cost of cultivating fodder crops." Tho Victorian Government; is clearly apprehensive of .liversion of ships, and only conlcinnlale.-i tho desirability of renewing the contract for the Iscvv Zealand ierm of three months. Tho importing houses in London, many of whom possess freezing works in Australia and Now Zealand, are all opposed to the continuance of Government purchase. The oimikm was also expressed that tho ourchase of Dominion meat while foreign companies wore _ left free in. their trading would be hurtful to Imperial interests, in the absence of illy evidence that fho maintenance of these contracts would be welcomed in the Dominions, we have not thought it advisable to proceed furl her with tho consideration of this plan. The report also refers to a proposal of the Incorporated Society of Meat Importers, composed of firms dealing with meat imports from Australia and New Zealand. These importers are impressed with tho idea that, in view of tho great demand for meat in other parts of the world, supplies may be diverted from the United Kingdom on tho termination of the exist ing system of purchase by the British Government from tho Overs?a Dominions. They suggest that contracts should be entered into with the freezing works ill the Dominions under which a minimum of SO per .-cut. of the New Zealand cutput of meat from these works, 75 per cent, of the Australian output, and 70 njr cent, of the Canadian and Sou Hi Afr'can output, should he sent to the United Kingdom in return for a premium of OJ'l. per lb. on the total Quantity shipped by British firms from Empire sources and consigned to members of an association of British meat importers. But the committee did not take a favourable view of tlv's proposal, though they recommend that it should be taken into consideration "when the _ question of tariffs, bounties, and subsidies is being considered in connection with the general trade policy of Great Britain." Australian Mutton and Lamb,

"Wo aTO impressed," Plate the committee, "by tlie way in which production in the Dominions has developed without any artificial stimulus. Tlio real problems are those of improving quality, extirpating disease and prowling against tlio risk of drought, and these can only bo dealt with locally, and not from tho United Kingdom. As far a* 'egards beef, the future lies wi'h the chilled variety, and the prospect of bringing it from Australia and New Zealand continues to Ik> remote, but Hie possibilities of development of trade from Canada, and South Africa were Inid befora ts by witnesses. As far as Australia (except Queensland) and New Zealand are concerned, the future lies v.itli the proditc't.ion of mutton and lamb, and the dovelopmcnt in the recent past has been continuous and vigorous. The demand in tbe United Kingdom is increasing, and the prosnect? of developing new markets in tbe "United States and on tbe Continent of Europe are bright. The Imperial Government may usefully help by oiplorontic action in securing tlio removal or uninstifiablo restrictions on importations and in obtaining for the Dominions a fair share of the' European anu American "Meat from Australasia is brought to this country in ships carrying not meat only, but also other produce, for which the best market has hitherto-been the United Kingdom. The possibilities of economically diverting suelt steamers (including the'obtaining of profitable return cargoes) is limited, and the greater problem is more likely to bo tho obtaining oi ships for the development of new market.! for meat. These considerations appear to make it certain tlmt a largo proportion of Australasian neat will always come to the United Kingdom; but in any ease, if the United Kingdom wishes to obtain its share of the world a meat supplies, it must bo prepared to pay the world's price." . In their recommendations regarding tho production of meat in the oversea Dominions tho committee state: "J\o regard the control or supervision of meat production in the Dominion as a matter for them alone, but in order to ensure unity of action bv the several Governments tvo advise that there should bo frequent inter-communication on this subject by conference or otherwise. As ail example of action in regard to which general consideration might be desirable wo would refer to the recent New Zealand Act for tho licensing of f cat exporters. Meat production in the Dominions may bo expected to continue to progress rapidly, and the tfxisttvnec 01 a readv market ill the United Kingdom for

tbo bulk of their exports 13 tho best "imranteo of such borne further aid can, however, be given by assisting them to secure new markets, (a) We recommend that diplomatic action he taken to obtain the removal of nil unjustifiable restrictions on the importation of Dominion meat into foieigii Countries', including tho surtax? d entrepot on meat transhipped from the Timled Kingdom. Further, if any action is to 1)0 taken for the feeding of the countries ravaged by this war, wo ' consider that every ellort should bo made to secure a share of tho trade lor tho Dominions, (b) We also recommend that Government contracts for meat should bo confined to British producers in the TTuited Kingdom and in the Dominions." Checkmating the Meat Trust. In regard to "checking practices in tho meat trade, whether by trusts or otherwise, which are inimical to the public interest," tho committee slate: "Various schemes have been, put before us aiming at tho exercise of a certain amount of control and supervision of tho meat trade, so ns to provide a re.ndv means of •intervention to check practices detrimental to the public interest. After cnrefnl consideration of those schemes wo make the following reeommelulations(a) Statutory Licenses. All persons who import or deal in cattle, sheep, beef, veal, mutton or lamb' in the ordinary course of their trade should be required by statute to hold a license from tho proper authority. Farmers dealing in stock 111 the ordinary ccurso of farming opera. Hons should be exempted from tho necessity of obtaining a license, (b) Conditions of Licenses: An applicant for a license should bo required to furnish' such information relating to tho ownerfiliip of his business and other matters as mav- be prescribed. Subject to the prescribed information being duly furnished, the license should bo issued to the applicant as of course, cxcept where it appears Miat n ca«o for revocation of the license would immediately arise on its issue.

"The conditions to lie attached to licenses should 1)0 fixed by tho licensing authority, and in tho ease of importers might include a limitation of tho tities of meat to be imported within * 'itieii lH'vinds. In general, these conrtitions should require:—All licensees to furnish at nil times such information concerning Iho operation? of their business as may be required, and to givo reasonable facilities for tho examination of books and other documents relating to their business. All licensees who are importers to furnish in tho required detail periodical returns as to their past, and cxpected receipts of incut. (c) Meat Department: Tho Board of Trade or such other department as the Government may select should set up a meat department assisted by two consultative committees—(a) consisting of representatives of the British interests ill tho meat trade, including producers and consumers, and (b) consisting of representatives of the owners of British in--6u1."-led ships. Tho duties of the department should comprise the issue, suspension and cancellation of licenses, subject: to an appeal to a court of law; Iho consideration of alleged "nses of unfair trailing anil other ('M.iplati'ts: Ui>> supervision of works Joased by Government, and anv otW'r duties.'tjiSfi"ti/ny from time to iu.m be. assigned meat department should' bo empoA'ai'td to exempt certain classes of trader*'(in particular s tn:ill butchers arid hawkers) from tho necessity of obtaining or liolding a license, and should■•discriminate between different classes in thef information to bojequired and tilt condlbg.fljfay)iod tq lioeuges/A