THE MEAT INDUSTRY

Dominion, Volume 35, Issue 284, 29 August 1942, Page 6

THE MEAT INDUSTRY

The figures relating to the operations of the meat industry, which the Minister of Agriculture placed before the electoral committee of the Meat Board on Thursday, disclosed a much better position than anyone anticipated at the commencement of the season. Last October Mr. Barclay explained to producers the terms of the new contract entered into with the British Government, which provided for a production objective of 275,000 tons of meat, a quantity deemed sufficient “to cover the expected wartime requirements of the United Kingdom Government in respect of the export of meat from New Zealand.” At that time the estimate of the amount of meat available for export in 1941-42 was put down at not less than 350,000 tons, and the application of every possible economy was still expected to leave a surplus of approximately 40,000 tons. In February the Minister reduced the estimate of the 1941-42 surplus to 17,000 tons. In view of the substantial carry-over from the previous season this expected surplus—the combined quantity would have been the sole responsibility of the Dominion —was a problem, but developments during the year brought a substantial measure of relief. Mr. Barclay indicated the source when he mentioned the position in Australia -which had enabled facilities to be increased for the shipment of New Zealand produce. The result is that instead of the accumulated carry-over anticipated the next few weeks may see cool stores practically cleared. Such a position, at the close of the third year of war, was probably not thought possible by even the most optimistic. The fact that the killings for export did not reach the original estimate was, of course, one factor, but the most important was provision of shipping facilities to handle the season’s kill. From the financial point of view the position must be equally satisfactory to the authorities. The carry-over from last season was outside the scope of the agreement, so that the full responsibility rested on the Dominion Government. Had the quantity actually lifted in 1941-42 fallen short of the 275,000 tons, then the balance would have come under the surpluses agreement and have been shared by the two Governments. The position appears to be that, instead of having a direct liability for last season’s carry-over (78,000 tons) plus an estimated carry-over this season of 17,000 tons, together with half of the joint liability for any quantity of meat under the surplus agreement, the Dominion has no responsibility regarding surpluses and has reduced the stocks for which it is solely responsible to only 44,800 tons. Of this quantity nearly one-half will be required for the forces in the Dominion and the Pacific area, so that there will be a balance of about 23,000 tons awaiting shipment. Statistically that is a much stronger position than was at one time expected, and one for which the community in general, and the producers in particular, can be thankful. It means that the storage space available is greater so that, should the run of shipping not equal that of the current meat year, the handling of the coming season’s kill will not create serious problems, There is, too, the satisfaction of knowing that the Dominion has been able to ship the foodstuffs required by the Mother Country and is in a position to maintain the supply.