The Daily Telegraph. WEDNESDAY, MARCH 14, 1883.

Daily Telegraph (Napier), Issue 3641, 14 March 1883, Page 2

The Daily Telegraph. WEDNESDAY, MARCH 14, 1883.

The little item of news that we published yesterday anent the formation of a rcfrigeratiug meat export company in London to operate in Hawke's Bay may mean a big thing for this town and district. Hitherto wo have not been strong advocates for the establishment of the new industry that has been found in the exportation of frozen meat. We were inclined to think that, as in nearly all infant enterprises, there was very much yet to be learned before thy best and cheapest methods had been discovered to ensure its success. We ventured to think that, however selfish it might be, wo could better afford to gather wisdom from tho experience of others, than to offer ourselves as an example and a warning. The places at which the refrigeration of meat has as yet been undertaken in this colony have had the very great advantage over us of having a safe harbor, or at least a harbor in which vessels can load from a wharf. This, we take it, is one of the essential conditions of success, and, in the absence of it, we thought it better to preach caution rather than to encourage rash enterprise, which, resulting possibly in failure, might choke at its birth perhaps the most promising industry that we have in prospect. We do not know whether the company, which we hear is being formed in London, is the resuscitation of that with which Mr John Chambers was associated, and which apparently fell through on the establishment of the Hawke's Bay Meat Export Company. But, any way, we arc of opinion that spare capital invested in England is far better employed in the development of the resources of 'this colony than that colonial capital already engaged in that work should be diverted into a new though somewhat similar channel. What we mean to say is this, that the shcepfarmers here have none- too much capital to spend outside the improvement of their estates and flocks, and that the export of meat has no more to do with their legitimate business than has the retail butchering trade. The meat export trade should bo to the sheepfarmer what the business of a butcher is— an outlet for fat stock, and nothing more. There is no necessity for the grazier to run any risk in finding a market, and, as showing what the risk is in the exportation of meat, we quote the following from the Ashburton Mail:—"New industries are easily depressed. When a few mouths ago the news arrived that frozen mutton from New Zealand had only realised 5d a pound in the London market the hearts of our graziers sank within them, and those who wore not graziers modified the opinion they held a few weeks previously as to the rapid progress of the colony. When the balance sheet of the Duncdin's cargo showed that the enterprising exporters had netted about a guinea per carcase of mutton a vista of something better than a gold field or a diamond field was opened up. Sheep of a similar cla*ss to the Dunedin's shipment were at the time realising from 11s to 13s in Christchurch and Dunedin. Companies for the export of ' frozen meat were started at various places in both Islands. The companies did not require much paid-up capital, so even in a time of close money there was no difficulty in filling up the share lists. But a chill came over the shareholders before their enterprise could take practical shape. Intelligence was received that the second shipment from 'Port Chalmers had hung firo in the London market, and that the mutton was slowly being disposed of at a trifle over -Id per pound. It afterwards transpired that Reuters quotations wei-c not correct, and that tho mutton realised about a penny per pound higher than tho price first telQgraphed. Still od was not a paying figure, and the Mataura's shipment was a monetary failure, although the mutton reached Home

in excellent condition. One result of that failure was that some of the embryo meat exporting companies were promptly wound up, the low prices obtained for several Australian consignments hastening the process. First losses ai'e generally considered the smallest, but the companies were not even so unfortunate as to incur a first loss. It was well, perhaps, that the drop in value took place at the time it did; had it occurred at a later period there might have been pecuniary loss to add to disappointment. Nobody's fingers have been burned and consequently there will be no undue amount of shyness in again entering upon an industry which promises to do so much for the colony. The latest quotations for frozen meat in the Home market are 7d and 7id per lb. When it is considered that 6d would be regarded as a paying price, it is needless to add that the addition of a |)enny or three halfpence per pound must leave a veiy largo profit indeed. There is good reason to believe that the present or higher values will bo generally maintained in the future, and that any depreciation will be only temporary. It is only a matter of prejudice to overcome, and even John Bull's prejudice can be conquered in time. At Birmingham in the centre of England Australian mutton was sold the other day at 8d per pound. In a short time there is little doubt that Australian beof and mutton will penetrate to every centre of population in Great Britain. At present the frozen meat industry depends too much upon the demand in the capital. If it is often advisable to send cargoes of grain to other parts besides London, it is surely advisable to consign meat to other places. The London grain broker buys for consumption over the United Kingdom, but the dealer in meat only buys to supply the local demand. That demand is enormous, but so also arc the supplies constantly coming to hand. It would be interesting to loam whether the largo storage recently provided for frozen meat in London has had a good effect on the price, by obviating a forced sale when there was a'glut in the market, It is a remarkable fact that those gluts rarely lower the price to the consumer. With regard to the future of the frozen meat trade, returns year after year show a steady decline in the number of live stock in the United Kingdom, whilst at the same time the population is increasing. Every year England, so frequently pointed out, is becoming inoro dependent on outside sources for her meat supply. At one time it was thought that America would meet the demand. At present beef and mutton in New York are within a fraction of London prices; in fact, with the rapid increase of population in the United States the supply in the future is not likely to exceed consumption. Everything- point.-) to Australia and New Zealand as the sources from which England must make up the deficiency in the homo meat supply.