MEAT EXPORT

Dominion, Volume 13, Issue 208, 28 May 1920, Page 8

MEAT EXPORT

NO EXTENSION OF THE COMMANDEER GLUT IN ENGLAND "UP AGAINST A CRISIS" MR MASSEY PROMISES FINANCE SHIPPING AND FREIGHTS

Two very Important announcements regarding the future export trudo of this country in meat were mude by the Prime Minister to a conference of producers meeting in Wellington je3terday. (too was that the Imperial Govsrinient had absolutely refused to (xtend the commandeer beyond June SO, for any period at all, nnd the other was ihat the Government would bo prepared to finance the meat export business for the producers next season, until the stores were cleared of Imperial meat. r This meeting was a conference of producers of ment, wool, ; nd dairy produce, with representatives of the freezing companies, nnd shipping representatives also in attendance during part of the proceedings. The chief concern of the producers and the chief reason for the calling of the conference was the uncertainty of the prospects for the coming meat season. They nil strove now that the Government control of'tho business in England has been a failure, that there has been serious bungling in London, and they know also that the present condi--tion of things, which will involve all cf them to a greater or less extent, has boon due to the mismanagement of the meat control in Britain. The stores in England are reported to be still fairly full of meat, although not so full as they were before the price to tho British consumer was roduced some short time ago, This congestion of stores in Britain was one of the factors which conduced to the congestion in the stores at this end, for shipping was delayed in English ports because there was no cold storage 6pace for frozen cargo. In New Zealand the stores are full of meat betongmg to the Imperial Government. 'Next season will open with millions of carcasses of meat in the stores of this country. The lowest estimate is two millions, ibut it may be four millions. The question arises as to what arrangement tho New Zealand Producer ought to try to make wittii tho British Government about the shipment ot free meat nlonz with the Imperial meat. There is a further moTN serious matter ■for consideration-thnt the glutted state of tho 'British market may bring about uneasiness and unsteadiness in the trade here, or may even cause a heavy break in price, it was to discufs these and othor things, but chiefly .these things that the producers had been called toother. The conference was convened V the tioartt of Agriculture, and the chairman. • or the board (Sir James Wilson) presided. What the Government Has, Done,

The Prime Minister wag asked to infroni the conference as fully as possible of the situation aB he knew it from the point of view of tho Government. Mr. Afassey said that there were many important matters for the conference to discuss. The situation amounted to a crisis, but he hoped for a solution of the problems of the producers. He thought that the best way in which to give tho conference full information would be to read correspondence which he had had by cable from the British Government. This he did, and the reading of the budget of telegrams occupied, with explanations, about half an hour. Many of the ttelegnuna have l>een published in effect in the newspapers over tho past few months. The telegrams detailed .the ..rep'rcsentations made by Mr. Massey to the British Government urging that tho position in New Zealand might be serious, causing financial embarrassment owing to its unsteadying effect on trade, that it was urgent that the New Zealand stores of meat should be cleaTed beforfe the season following the ceasing of the commandeer was due to open, and that to make possible tho clearance of the accumulation of meat in the stores in England the price to the British consumer should be reduced. The telegrams dealt also with the allocation of shipping to New Zealand. As an alternative and as an additional measure of protection Mr. Massey had urged that the meat commandeer should be extended beyond June 30 next; his suggestion was that it should be extended to the end of December.

Another question dealt with in the telegrams was the Imperial control of shipping. Mr. Massey had asked when this was to cease, mentioning as his reason for anxiety the -fact that the New Zealand shipping companies would not quote any rates of freight until they knew when the Imperial control was to ceaso. Probably Incorrect.

Mr. Massey said that a cablegram had boen published in the newspapers to tho effect that the Australian Government had secured an extension of the purchase contract for Australian meat. In reply to his inquiries on the subject of this message the High Commissioner had informed him that he could not got an official reply from the Board of Trade on the matter, but that ho had been informed unofficially that the Hoard of Trade had not authorised the extension of tho contract. He did not think'there • was any truth in the Press telegram. On Wednesday he had received a telegram from the High Commissioner that the control over British home-grown meat would cease on July 4. and that thereafter this meat would bo eold on a freo market. Mr, Mussey remarked that it was impcKsible to say what effect this relea6» of Home-grown meat from control would hove -on the market as affecting Now Zealand, The feneral impression would be that tho ridease of control would let the price up. That had not been what he had observed in connection with control. He had noticed that as soon as control ceased the prices dropped, tho reason being that up to the time of tho free market the market had been supplied only with its bare requirements. More Than Enough Meat, The telegram contained the information also that the consumption of mutton had reached the pre-war level. The Ministry of Food had -150,000 tons of meat of all descriptions to dispose of, and it was suggested that an outlet for New Zealand lamb and somo of, its mutton might bo found in America, and tho hope was also expressed that some of our meat might bo sold to the Continent. Tho quantity of New Zealand ment in sight—in store in England, on tho water, and in store in New Zealand—was 13,400,000 carcasses. The estimated consumption in Britain up to the end of the year was 7,000,000 carensses, and thlis consumption was expected to increase owing to the reduction of prices. Thero was an estimated exportation of 3.500,000 carcasses of lamb. It was calculated that nt the end of tho year there would be 4,450,000 carcasses of New meat in storo in New Zealand and on the water, and Mr. Mussey sußgcsted that this position would compare favourably with that for last year, when there were 4,500,000 carcasses of meat in the stores alono. The High Commissioner said that he could obtain no definite information as to the prices likoly to rulo. Tho Food Ministry thought that it would bo necessnry to retain prico control In order to prevent unduo lowering of prices 'by competition. Mr. Massey thought that what would bo done in tho future depended on what was done from this end to keep the Imperial Government informad of the requirements oftlis situation. His own opinion was that the present prices for New Zealand mil Hon and lamb should no retained, for if the present stocks should be reduced by increased consumption, tho prico should "not weaken greatly. In nnother telegram tho High Connmssionfr advised that tiro congestion nt the docks had been so far removed that there was now sufficient space to mako it possible, to deal with stocks arriving. Only ono steamor had been delayed m Loudon brcausoof inability to discharge. The High Commissioner advised also that the Imperial Government expected to be able to provide 12,750,000 cubic feet rf insulated space in shipning between July and November, equal to 4,200,000 carcasses.

Final Refusal. Tho most important tclejrram of all had been received that morning; it had como as a reply very speedily to a telegram of his own sent on the previous day. In this telegram the Sccretnry of State said that His Majesty's Government felt bound to re-examine the situation. The amount of mutton in store was very excessive and every effort wan being made to deal with' the abnormal situation. Increased consumption was following upon ' the reduction in price, but in spite of that there was no reasonable prospect that consumption at homo would overtake supply, nnd there was even- prospect that tho overstocked state of the market would continue well into 1921. The telegram continued :— His Majesty's Government is therefore reluctant to increase its commitments by any purchases in respect of the 1920-21 season, which would only increase the difficulties in dealing with supplies. Purchase would, in our opinion, only increase the difficulties likely to be experienced in conducting the new season s operations. For these reasons His Majesty's Government does not see its way to depart from the position nn March 13. "We are up against it, said Mr. Massey. "and it is just as welt to know what the nosition is. The commandeer ends on June 30, nnd theTe is not the slightest chance of its being renewed. It is just as well to know it. so that the best arransements can be made. And I hope that tho best arrangements will be made." • ■ Meat in Stores. Mr. Massey gave the following figures to show how matters stood: Freight Carcasses. Stocks on hand at .freezing works on April 30 , 7,010,618 Less certain allowances 420,618 Leaving 6,620,000 Estimated to be loft in June 5,420,000 Less space savings 200,000 5,220,000 Estimate for May, June, and July killings 1,200,000 Total 6,420,000 Tcnnago for July to November loading .' 3,720,000 Leaving in stores 2,700,000 Mr. Massey said that on this estimato tha Imperial Government would hold in the Now Zealand stores about three million carcasses. He hoped that tho position would be better than that. Ho hoped that the actnal amount left in stores would be two million carcasses or two and a half millions. Government to Give Aid.

Mr. Mnssey went on to deal with the problems of finance involved in the handling of New Zealand meat without tho stores cleared. He said that already tho New Zealand producers had received from the Imperial Government .£138,000,000, and there "was probably .£8,000,000 or JJIO,OOO,CCO still lo come. Ho could say without hesitation that the commandeer arrangement had been tho best thing that had ever happened for this country. (Hear, hear.) Jf the New Zealand producers had notified the Imperial Government a year or eighteen months ago that they desired an extension of the commandeer they might have got it, but there was no chance of an extension now. New- Zealand had now to get back to tho pre-war methods of doing business, and would have to conduct its own affairs-. "The Government is not going to let the producers down," said Mr. Massey, and the announcement was received with applause. "I havo not yet had the opportunity of putting 'a recommendation before Cabinet, but I know the opinion r.f my colleagues, and they aro all concerned in the wolfare of the producer. I want you to take the opportunity this meeting gives you of setting up a finance committee which will tell the Government what you want. When we know your requirements, to a reasonable ex. tent the guarantee of tho Government will bo placed behind the producer* until tho Imperial meat is disposed of. (Applause.) I do not think the Imperial Government will insist on getting the last carcass of meat out of the stores before we can send any of our own meat to London. I believe thej will allow part of our meat to go before their meat is totally discharged. I want to assure you that we are in a difficulty. We are all producers, or at any rate we are all interested in production, and if this meeting oi experienced men can suggest anything to ease the position and preserve the interests of the producers, the Government will be quite willing to act up to it." (Applause.)

Question!. ' Eeplying to one or two questions after ho had finished his statement, Mr. Massey said that he did not think the Imperial Government would place any difficulties in the way of the New Zealand producers finding other markets for their produce. ~,,,, , -, Sir Walter Buchanan said that ho hart been told that on July 1 next he would not bo able to ship unless ho entered into a contract with a. shipping cornMr! Massey said he knew nothing of any such commitments. "Replying to another question he said that he did not think there would be nnv difficulty about New Zealand meat going to the United States, lint he said that he did object to vlio Meat Trust (jetting a foothold in. this country, and tho New Zealand Government would place every difficulty in the way of that. He would draw the lino at the trust owning works in this country. Mr. Massey said that ho had endeavoured, as he had stated earlier, to find out when the Imperial Government would release control of shipping, but he had not up till the present been successful. He was of opinion, however, that the control would not last much longer. His information about available insulated tonnage was that there were now 251 British ships insulated, and that 51 other ships were building on December 31 last.

,Tonnage Available. Mr. Jame3 Findlay (Shaw, -Savill and Albion Co.) said that he was unable to give any information as to when the shipping control would end. Speaking for his own company he thought that thoro would bo ample space available. They- had 17 steamers afloat and three building, and with the available tonnage his company should be able to lift 3,786,000 freight carcasses of meat. If tho space usually required for cheese and butter were increased, the space for moat would bo reduced to 3,000,000 carcasses per year. This was conditionally on the vessels making two voyages per year. Mr. Wallis (Federal, Shire Line) said that the ships of his line would bo ablo to lift 3,000,000 carcasses per year, but half of the tonnage would bo allocated to Australia.

Mr. J. It. Roper. (C. and D. Line) said that during tho war his company had lost six vessels. These had beeh replaced with eight larger vessels, and at tho end of the ypar there would bo two more. There would be space for 2,653,000 freight rarcasses, half of tho tonnage being for Australia. He emphasised that these calculations were based, on the assumption that the steamers would make two trips a year, but there were now delays in shipping all over the world which ought fo be allowed for. One of the difficulties was that of being required to coal at Newport News. Mr. G. B. Bullock (New Zealand Shipping Company) said that shipping companies had done their best to dispel nny bad feeling towards themselves on(ertaincd by the producers. Consequently ho was glad to meet the producers. His company also had lost heavily during the war, but it was building more ships. He was sure that if the producers would leave themselves in the hands of tho shipping companies they wciild be all right. Ho estimated that witn [Tie ships now afloat and soon to bo reauy his company would he able to carry 2,801,000 carcasses a year, assuming that two voyages a yoar were made.

Mr. Findlny, summarising, said that after providing epaco for dairy produce there would be space available for carrying 10,400,000 carcasses a year, whereas the production of (he country in meat w«f/ a'boui; seven million carcasses a year. There would bo more space available than could bo filled. Future Freights. Mr. Findlay was aaked for any ia.