WELLINGTON NEWS

Hokitika Guardian, 4 December 1925, Page 1

WELLINGTON NEWS

FIiOZEX .MEAT TRADE. (Special to “Guardian”.) WELLINGTON, Dee. *2. The latest reports from London regarding the frozen meat trade are rather discouraging, if not alarming. The meat trade is very depressed and for some time past prices have been steadily reduced without, in the least .stimulating consumption. For a little while during the earlier part of the shipping strike the market was inclined to firmness, but the moment that some of Iho ships were enabled to get away the market again resumed its falling tendency. The fact seems to he established that supplies are for the moment in excess of the consumptive demand. There is said to he fairly heavy stocks in Loudon particularly of medium and heavy weight New Zealand lambs, and large supplies of cheap chilled beef from tile Argentine. And according to reports heavy shipments are on the water, comprising .">00.009 carcases of mutton and 'I.IWi.OOO carcases of land) from New Zealand and the Argentine :ind in view of this buyers are showing considerable indifference. Obviously there is no confidence in the stability of prices, and it is difficult to see what, is lo give confidence to the trade. The position is really a serious one for the sheep farmers as well as the freezing companies. Wlmf a great change has come over the market as compared with a year ago may he seen by taking tlu- prices cabled lo the .Meat Control Hoard. The quotations as at the 28lfi November. 1921 and November 28th. 1020. for Canterbury quality mutton and lamb show that, mutton ofilb and under was lasi year selling at 9d per lb wholesale, while this year the price is 7.'|d, a drop of 1 ;Jcl for .Will to til lb. last, year 9d, this 7',d, also a drop of I ;|d ; for (iolb to 721 b, last year S.td. this year 7',d. a drop of I'd. Ewes (illb and under, last year 7Jd, this year -tjd. a drop of 2Jd. For lamb 301 h and under, last year’s quotations were RRd. this year lid, a fall of 2Jd. and Hill) to 501 b last year I2:|d, this year Sid, a drop of t.pl. This confirms the statement that medium and heavyweight lambs are in excess supply just now and almost unsaleable. When the henvv shipments now on the water reach their destination prices must go lower, and the uncertainty of the position must he very trying to flic freezing companies that are just about ready to resume operations. This collapse in values must have far reaching effects one of which is that, the cooperative freezing companies will again find a contraction in turnover. It is not likely that many farmers will, under the circumstances, run tin; risks ot (lie market and ship on their own account. They will most likely prefer to sell and let the exporter accept the risks. It is difficult to suggest, any remedy for the present, awkward situation, still the Control Board cannot lie absolved from blame. Shipments could have been hotter regulated notwithstanding the disturbance to shipping caused bv the strike. ■FARMERS’ MEAT COMPANIES.

Complaints continue to he made by the officials in control of farmers’ meat companies at (lit' lack ol support given to such concerns by those who hold the shares. There is no doubt ample justification for such complaint : at the same lime the fact that the farmer shareholders ol these companies arc nimble to render full support is an indication that, they can do better in other ways ami aiier till they earned he blamed tor doing the best tor themselves. The co-operative companies onlv freeze on owners' account, while proprietary concerns oiler similar services and are also prepared to purchase stock outright. There are eomnarat ivc|v few farmers who can aflord to take the market- risks. A farmer who has just about a thousand sheep anti lambs or even double that number to sell during Ihe season would ntd find it enliven iollt ol’ even jilulUaUin to ship.nn own aecount. Tlierc is the long wait for returns and the uncertainly ol Ihe market. To such men a straight out sale and prompt cash is infinitely supevior. Il is a well known laid that many sheep larmecrs in a large \in\ avoid shipping frozen meat on own act mini. While conditions remain as tliev are there will he keen competition bet ween the (w.. classes of freezing companies, and the proprietary concerns are hound to win because they can offer better terms. There are too many co-operative freezing companies in the country.