WELLINGTON NEWS

Hokitika Guardian, 4 May 1926, Page 4

WELLINGTON NEWS

FROZEN MEAT TRADE

(Special to “ Guardian.”)

WELLINGTON, April 30.

The frozen meat trade continues depressed. There have been occasional improvements with values holding for a few days, but the general tendency has been downwards. The position of meat is one that is easily understood. During the war enormous supplies especially were drawn from all possibly sources and high prices were paid. This gave a stimulus to the production of beef. In the season of 1924-25 there was an extraordinarily good demand for mutton and lamb, with prime quality New Zealand lamb selling at as high as 13jd per pound at Smithfield. The high prices checked consumption and consumers turned to the beef which was in ample supply. Contintcntal countries were also forced to take frozen beef owing to the shortage in domestic supplies and Italy, France, liclgium. and Germany were all importers of frozen beef. Now there is a steady growth in the domestic output. In 1923 the imports into Continental Europe contracted appreciably. The ,position to-day is that there is an ample supply of meat and particularly of heel'. According to \V. Weddell and Co's annual report on the frozen and chilled meat trade there is no evidence of any shortage of meat supplies in the near future.

Home supplies of beef are expected to be normal. Argentine beef shipments may lie heavier than last year; they arc not expected fo be less. Now, it must not be overlooked that the consumption in Britain lias swung round to beef. With respect to mutton and lamb the report of Weddell and Coy. states that the outlook is uncertain. In tlie present state of public sentiment, and with available and prospective supplies more than ample, producers should realise that the British market cannot he expected to pay the high prices ruling during the past years. “ With regard to mutton and lamb.” the report continues, “in view of the increase that is taking place in world production, owing to the large profits that the recent prices of moat and wool have afforded the growers, a lower average of prices seems a reasonable expectation. Britain and the neighbouring countries are building ii|) their flocks, and the same thing is happening in South America and the Dominions. There are now no new markets in sight for mutton and lamb in any quantity. The producers in our Dominions, however, if they maintain and if possibly improve the quality of their meat and take every care to deliver it in the best condition in this country, may depend upon a continuance of the active consuming demand.” Producers of mutton and lamb in New Zealand must rely upon their efforts rather than on the Meat Board. Production must be increased and quality improved to get' the best prices (going. LONDON WOOL SALES.

The'tliii'd of the series of London wool sales which commenced last week will cause some disappointment to growers of crossbred wool, for values show an easier tendency. The tone displayed by the market is just what was expected. Fine wools have again come into some prominence, owing mainly to a demand from the Continent, where stocks are said to be low. Bradford is always ready to buy every grade of wool at a price, but will not repeat the blunders of the previous season when fancy prices were paid for the staple. It is very probable that the opening has been under the influence of the coal crisis, and when this is definitely settled one wav or the other the trade will know how to act. At the current London sales about 37,000 bales of New Zealand woo! is to be offered, and it is. to be hoped that the market will show some improvement. The decline in the price of crossbreds was not, expected for Bradford advices a lew days ago indicated that best quality crossbred tops were cheaper than at the close of the March sales, and the raw material had to lie brought into line with the tops market. Merino wools . appear to be in strong general demand, and have advanced. This movement was foreshadowed at the sale in Australia wlievo the markets have been very firm.

The past wool season in Hawke’s Bay lias been a very bad one when compared with the previous season. In the season just closed the 90.72-1 bales sold at the Napier sales realised 91,534,9-12, while in the previous season 88,695 hales realised £2,796.577. Thus notwithstanding the larger quantity sold, the return was less by £1,255,035. But it must not be overlooked that the season 1924-25 was an abnormal one. when the buyers blundered badly, and paid fancy prices. Tf the season’s returns are compared with those of 1923-24, the position is not so had as it appears.