MEAT MARKET

Evening Post, Volume CIX, Issue 102, 2 May 1930, Page 11

MEAT MARKET

THE BEEF SUPPLY

PRODUCTION AND PRICES

AMEEICAN PROTECTION

I (From "The Post's" Representative) LONDON, 21st March. In an article, in "The Times" on1 | 24111 February, Sir William Italdanc dealt with the meat situation. Among other things Sir William maintained that it was mainly due to America's' largo imports-of meat from New Zealand and Canada that Britain had. imported less beef 'and at higher prices during 1929. In a letter to '' The Times" of 17th March Sir Edmund j Vested controverts this and othew statements. He writes: — "The reason for the increased c-ost of Britain's overseas beef hi 1929 was the reflex from the. war-time over-pro-duction. South America,- Australia, and New Zealand—owing to the creased production for war 'requirements, meeting the reduced demand for frozen beef, on the Continent, and also to those Continental countries re-estab-lishing their herds on a basis similar to that before the war —had millions more cattle than the world could deal with, and as a result of this vastly increased supply of cattle the. price fell in. 1927-28 on gniithfield Market, for llie finest chilled-hindquarters of beef I that the world . could produce at 4d per )b. The ■■consequence of these unprofitable conditions was that thousands of'cattle-growers iv the exporting countries went out of ,the business of raising cattle, as people go out of any .business that becomes unprofitable, with the result that for the moment the pro-, duution' of cattle was greatly diminished, and prices naturally rose. But even already, with the best Argentine chilled beef being sold on Sinithfield > at about 6Jd per lb sides, no one can 'say that the price is a high one; it cau only be called by those concerned in airy branch of the trade a fair price. AMERICA'S CAPACITY TO PRODUCE. "The war and its aftermath had this same "effect on the United States. When the United States farmers were appealed'to during the war by their Government to produce the utmost possible cattle they responded to.such extent that when the war'stopped tbero were so many more millions of cattle being ■reared than America required that when, they-came to bo marketed the price realised left such huge losses that many thousands' of cattle-raisers in the United-States were ruined and many thousands moro wont out of the cattle-raising' business, find so there came about a shortage in the United States during the last year or, two. But the United States is a protective country, and to show the -cattle-raisers they can proceed,with safety to invest their capital in supplying, their country's needs of meat tho; Government have now not only placed 'an absolute prohibition.on chilled and frozen beef coming from South America and Australia, but on-the paltry amount coming'from New Zealand and. from Canada. They have drafted a new Tariff Act, expected to come into force in April, raising the tariff 100 per cent.—i.e., from three cents to six cents per lb—and if.these duties in practice wore found not to bo high enough to prevent huge quantities- of meat coming into the United States you can be sure they would,-if necessary, at once be raised, a further 100 per cent., as has been done during the past few years, •with-, other agricultural products that compete with the homo '.production. .:.■.■•■ "The United States under normal conditions does not require, and is determined not to have, frozen or chilled, beef from outside, sources. They can themselves produce all they require without the least ~ effort. Whenever cattle prices . reach...a' level "that shows the cattle-growers. a profit in growing cattle, so quickly as they can be produced' their markets will be ' flooded. The capacity to produce, as they showed during, the war, is unlimited, .and no one knows that better than the Agricultural Departments at- Washington. .. ■ ■.'■-.' NEW ZEALAND'S CONTRIBUTION. "Sir William Haldano says:—'The United States to satisfy the hunger- of their people have devoured the surplus cattle and beef Canada fed us before.' The fact is that what Canada 'fed us before' was like a drop in the ocean, not more in recent years than an infinitesimal portion of Britain's supplies, and in the future can be nothing worth mentioning. Canada .cannot compote with. British home-killed in cost; Sir William Haldano further says: 'America has seized the great bulk of our supplies from New Zealand.' The actual position is that America took about half New Zealand's shipments in 1929, amounting to a paltry 2J per cent, .-of Britain's consumption. . ''Again, my criticism on Sir William Haldane's statement, 'America has begun, competing with us for whatever supplies of beef Australia can offer,' is simply- that it is incorrect. Australian beef, either chilled or frozen, is absolutely prohibited to enter the United States. Sir William says: 'America is now seriously attacking the monopoly we have hitherto held as'the one big buyer in South America, the mainstay of-supply we have long leant upon.'i must say again, for the same reason, that this is quite contrary to tho actual facts. Frozen or chilled, beef' from Sft'uth America is absolutely "prohibited to- enter the United States. I could continue further showing ,the inaccuracy of Sir William Haldane's remarks about the prospective shortage of beef. I feel, .however, it is' sufficient to say that the prevailing prices of beef are exceedingly remunerative to cattlegrowers in' all the countries of the world that Britain, draws her supplies from, and most business men know that this condition will undoubtedly bring forward greatly increased supplies as quickly as the cattle can be produced."