THE MEAT TRADE

Dominion, Volume 13, Issue 259, 27 July 1920, Page 8

THE MEAT TRADE

AMERICAN BUYERS. • THE PETITION TO PARLIAMENT. (To the Editor.) Sir,—l seo that a petition - has been ■ presented lio Parliament signed by lflo Canterbury farmers in favour of the granting of a meat export license to Messrs. Armour and Company of Australasia, Limited, and also that Mr. u. TV. Forbes, M.P., has given notice to ask' wliother tlio Government will remove the present embargo on American meat buyers wishing to operate in the Dominion. Mr. Forbes's question implies apparently thnt unless American tmyers operate in the purchase of our live stock here the Dominion cannot liavo the advantage of a. demand from America for our meat in addition. to the demand from the United Kingdom. So far as'l can seo, the Dominion can benefit by this demand just the same whether American operators are allowed to purchase live stock and exporf from here or not. There is nothing to provent American firms purchasing'our meat on delivered U.S.A. terms in the same way as thev and many of -the large' British operators at Home purchase the supplies they require for their, trade inthc United Kingdom. To my knowledge' several English firms have opened offices iri America during the last year or two wliich! are available for precisely this purpose, so thnt so far. as obtaining supplies is concerned, Messrs. Armour and anybody else in America can obtain them without difficulty, and are under no necessity to come here for them. The cost to tho producers' of the exporters' intervention would be offset by the expenses of flTe. American firms' organisation here If they were buying stock instead of meat, delivered in the United -States or the United Kingdom. Regarding this petition above-mention-ed I "would' -like to suggest that this should ■ have serious consideration, as it involves elements of a far-reaching nature. The reasons advanced in support of, the petition appear to be concerned almost solely-with matters affecting ithe position of the moment, and not the more permanent features of the whole Tneat industry, which are really involved. For some little 'time before the war there was a growing' apprehension felt by producers and others concerned in' the frozen meat trade ns to, tlve increasing power of the American /packer firms on the English market. Producers feared their consuming market might lose its freedom, nnd at 'the time were strongly in opposition to the idea of extension of the American' firms' powers by means of their operating in the producing countries of New Zealand and Australia. • Then camo the war, and a long period during which the control of tho meat market in England was in tho hands of ' the Imperial Government. During this period Messrs. Armour .and Company came to New Zealand., Prior to'tho commandeer the Dominion producers had unsurpassed freedonr of action in regard to the disposal of their stock, and enjoyed tho keenest competition both on the .spot and in the United Kisfdom for it. The producer could sell his live stock liero' or kill_ on his own account; and carry the risk on the meat—or wool—or pelt right Home to •' the consume " he wished, with full facilities at lowest, cost. If-American firms come to this market nnd operate oil a large scale,, as they undoubtedly would, it seems to me inevitable that the trade at Horn* m »st fall considerably info their power, with the inevitable weakening of the elements which have hitherto provided much of the keen competition and frc» dom of the marketing, available to the Producer. Bear in mind the enormous financial resources of these big firms nnd the power that gives them over' the 6maller but not less efficient operator. I hand you herewith an extract from the report of the Committee on Moat Supphes appointed by the British Board of Trade Inst year, . which deals with the. situation in the-Argentine, It is too long to include in this letter, but y ou/-will soe from it that the development in the, Argentine has been that since 1907, the year the first American Packing Company entered the Plate, tlin British and. Argentine companies haw been either absorbed or steadily reduced to comparative impotence by means of a price-war, alternating with periodi; of •conference" working, during which each Tf.TM a P« rc entagc of the export, allotted to it rendering competition unnecessary. You see the gradual decrease ox British and Argentine proportions nf , the meat export trade and increase of ;h« American until between 1909 and 1916 the difference is as follow*: -

1909 1916 ; rer per British owned companies 37.0 26 4 Argentine owned companies 27.7 14,6 American owned companies 35.3 ' 69.0 . . ■ . 100.0 ' ICO.O It was generally thought that but for the situation created by tho outbreak of war the remaining British and' Argentine companios in South America would hite been unable to resist tho competition of tli® American packers much longer. What will happen initho future there wo cannot say, but as you eeo the Amorican urma have already a dominating inllu. ence. I have no desire, in fact am particularly anxious to avoid, • prejudicing Messrs. Armour and Company or other American firms by . any "biased arguments, and merely urge that this matter be looked at from the point of view nf ['8 ultimate good of the trade and- in the light of its 'bearing upon' the meat industry throughout the Empire. Messrs, Armour omd Company assert that thero is no Meat Trust, i do- not 6ay there is. To me it were a to make little difference. One need have no objection : to Biese hrni6, as firms, and one cannot possibly 'find, fault with Armour and Company tor trying to come in here. However, V? D f. m ' u ' on > f considers it inadvis""l® that these firms should be able to buy stock here in the country, can quite frankly say, "We think vou are big enough and already enjoy quite enough ■jower, in our selling markets without our giving you more. You can have our meat by buying it from u», but we will deliver it to your door.'' It is urged that American firms be permitted' to operate hero, an it were, under safeguards or on trial. That seems to me to be playing with them, and with the position, I am. aware tliat it will be at onco objected mj; opinion is biased by reason that American firms' operations here might be detrimental to my interests in business. Jean only say that my feeling that this, matter should be _ dealt with by receiving the most serious consideration is my honest individual one, as presumably the petition of the 10b' petitioners is their honest opinion. If the ultimate world-wide control of the meat trade by large interests only is for the good of the world in general and the Empire in particular, lot it come about as soon as it can, but I think human socioty is not yet so organised that the'time to decide for this has come. Thanking yon for tho courtesy of your space for this- letter,—l am, fete., . F. H. SAINDALL. Christchurch, July 24.