WELLINGTON NOTES.

Hokitika Guardian, 26 November 1924, Page 1

WELLINGTON NOTES.

■SOARING AMvAT PRICKS. (Special to “Guardian”.) IVF ISLINGTON, November '2l. I hose interested in the frozen meat trade are not surprised to see prices rulin'; high in the Loudon market. As a matter of fact it is chilled hcef and land) that are really soaring, and the upward movement in prices is due to shortage of supplies. If we east our memories hack it will he recalled that hcef was a drug in the market. During the war there was an extraordinary demand lor hcef for the armies and places were high. This led to considerable development in tho beef producing indust iy in the South American Republic, and when the war ceased, and the demand cased these Republics were carrying heavy stocks. Prices fell and kept, “n falling and tho Argentine Government went so far as to lix minimum i’rbes lor fat cattle. Chilled beef was being sold in London at ruinously low prices and the frozen beef trade of the Argentine and New Zealand was seriously affected. In the Commonwealth the federal Government endeavoured to help the industry with an export, bounty, in New Zealand we developed the Heat Producers Hoard. The socalled trusts were blamed for the then existing condition of affairs. Tnteiest in the cattle industry in the Argentine was deadened, and all efforts were made to reduce stocks. In addition to this the countries of Continental Kuropo flail cultivated a taste for frozen beef, and regular shipments are now being sent to Italy. France, Germany, Belgium and Holland. During the fortnight ended Nov. 11. the Argentine shipped 227,000 quarters of frozen beef to the Continent. Chilled beef is in short supply and at tile close of last week chilled fores were selling wholesale at od per lb. as compared with .Tjd a year ago, and chilled hinds at 7.U1 as against bjd a year ago, while New Zealand frozen fores are now at I’d against .‘P.il a year ago. and frozen hinds at od or the same as a year ago. The advance in price is really due to the demand exceeding the supply, hut this can only he temporary. AVitli respect to mutton and hiinli the same factors that have operated to cause the wool to advance have caused mutton and lamh to rise. At the best of times lamb is a luxury, and there are plenty of customers wlm will have lamb whatever the price. The demand for all classes of moat has been good recently that stocks are very low. But new season's meat from Australia and the Argentine will he coming on tho market in increasing quantities and Inter on New Zealand will add her quota, when there will follow an adjustment of prices. The trusts that were blamed when prices wore ruinously low are now accused of manipulating tho market and it is obvious that the trusts are being blamed for more than they deserve.

THE POSITION LOCALLY. The high pi ices ruling for frozen meat are rather tending to check business. The freezing companies and the meat exporters are quite certain that values will drop. They can scarcely go higher and must go lower when supplies expand. Meat bought on the hoof justnow at London parity cannot possibly he marketed until about the end of January and who is to sav what the prices will he at that date. It i.s pointed out that the high prices will draw supplies and in a strong market buyers wink at quality. Moat will he rushed to London from the South American Republics and the weight will bring down prices. Then again there i.s the financial aspect of the matter to l>c considered. A rise in the Bank of England rate now would upset calculations in all markets and dearer money is justone of the probabilities of the near future. Exporters of meat and freezing companies are acting with extreme caution. No schedule of prices have been issue by any of the companies, but they are buying whatever lots that can Ik? pic-lcecl up at reasonable prices. Tt is generally agreed that the freezing companies will experience a very trying year by reason of the violent fluctuations in prices, and exporters arc in tho same predicament. Those interested in the trade are rather curious concerning the proposed inquiry by a Royal Commission ill Britain, finch an inquiry it i.s considered will do a vast amount of good by clearing away a good deal of the misconception that exists even in responsible quarters. Tlie Trade here i.s also anxious as regards the new developments likely to arise front the lightning strike in the London cold storage warehouses.