MEAT SUPPLIES

Dominion, Volume 13, Issue 130, 26 February 1920, Page 5

MEAT SUPPLIES

THE AMERICAN COMPANIES

SOME INTERESTING REVELATIONS

The meat supplies of the Empire were investigated recently by a British IntorDepartmental Committee, which had been directed to "consider means of insuring sufficient meat supplies for the United Kingdom." Copies of this report liavo reached the Minister of Agriculture (Hon. 'V. Nosworthy), who yesterday handed a Dominion reporter the following extracts as being likely to interest Now Zealand farmers:—

"Swift and Company entered the Plate in 1907 by purchase of the La Plata Cold Storage Company; and in 19C8 Swift, Armour, and Morris acquired the La Blanca Company. In 1911 Swift dropped out from the latter company, leaving it to the other two. The American companies enlarged their works and soon entered on a campaign of aggressive competition. Up till November, 1911, there was no agreement between them and the British and the Argentine companies., but after a price-war in that year an agreement was made which lasted till March, 1913, Morris nnd Company then comphinwl of their share of the trade, and this dispute (generally regarded by the British "rode as engineered) nrodnced another fight, characterised by the forcing up of cattle prices in the Argentine and the depressing of meat prices in Engjand. After fifteen months' fighting the British ♦ompanics were forced tfi accept a strums reduction in their percentage of the \rade. The agreement thfn concluded governed the allocation of tho Government contracts when war broke out, and. further modifications were made in 1916 «nd 1918 to admit of the participation of Armour's new works at. La Plata and Morris's new, works at Monte Video. Tho following table shows the'movement from 1909 up to 1916:—

Conference. Dec, Jan. 1911, No to to limitation. Nov., MaT., 1909. 1910. Mil. 1913. Per Per Per Per British cent. cent. cent. cent. companies 37.0 33.9 30.2 32.5 Argentine 27.7 24.0 25.1 24.9 American 35.3 41.2 4-1.7 42.6 100.0 100.0 100.0 100.0 No limitation. Confrrencc. April, June, 1913, 1914, to to June, July, 1914. 1916. British' Per cent. Per cent. companies .... 24.4 26.4 Argentine 17.6 14.G . American 58.0 59.0 100.0 100.0 "In 1909 there were three British companies, two Argentine, and two American (Swift and La Blanca); in 1914 two of the British companies amalgamated and the works of one of the Argentine companies was taken over by an American company (Sulzberger, now Wilson and Company). During each period of 'conference' or agreement the American companies retained a part of the trade they had taken away during the preceding period of intense competition thus improving their position. "In 1916 Armour and Company's networks nt La Plata wore opened, and in 1918 Morris and Company's new works at Monte Video; on both occasions the associated companies agreed to a re-allot-ment of their shares in the Government contracts and in the private trade, tho result being a reduction of tho percentaxe to which the British companies were entitled. The British Government, in the stress of a great war, were not in a position to insist on the maintenance of the British percentage. Omitting for the moment the output from. Vestey Brothers' new works at Karate (opened in 1916 and not in the conference), and the output from the Las Palmas works (operated since the autumn of 1915 on behalf, of the Board of Trade), the effect of the re-allotment in favour of Armour and Morris was as follows:—

From Aug., 1916, June, to May, 1918. 1918.

per cent, per.cent. British, companies 22.8 21.1 Argentine companies ... 10.1 9.8 American companies ... 67.1 CB.l

100.0 100.0 Taking the total output of «H the Plateworks ire get the following approximate division to-day.—

Original British companies Vestey and Las Ealmas .. Argentine Company

percent. ... 18.5 ... IG.I ... 8.2 ... 57.2

American companies v "The American meat companies have continued in the River Elate territory ; n co-operation, interrupted by periodical fiehts to secure a lamer share of the trade from their competitors; the two original British companies and the remaininpt Argentine company were forced into a 'conference' for the division of the trade, and there is little doubt that had not the war broken out, there would have been another disruption of the agreement to secure a share of the trade for Armour's and Morris's new works.

"The American companies have some 45 per cent, of the capacity of the freezing; works in Patagonia, about 75 ncr cent, of that of- the works built or buildin? in Brazil, and. they are developing Paraguay."