WELLINGTON NEWS

Hokitika Guardian, 20 July 1926, Page 4

WELLINGTON NEWS

THE MEAT INDUSTRY. (Special to “ Guardian.”) WELLINGTON, July 16. Mr J. S. Jessep, who is Vice-Chair-man of the New Zealand Meat Board, and, also Chairman oi Directors of the Wniroa Freezing Company, a farmers’ concern, appears to view with somo alarm, the position, of the freezing industry in New Zealand, and his alarm is fully justified. 'l'lie position to-day of the industry is serious, still it is the outcome of stupid uneconomic tactics for which the farmers themselves are responsible. The idea took possession of some farmers that if they erected freezing works in their respective districts and confined their operations to freezing only on account of farmerowners of fat stock the capital required need dot be as large as that of proprietary concerns which operated works on own account and risk, buying fat stock in the open market. On* these lines several farmers’ freezing works were planted in various parts,of the North Island without regard to the requirements of the district or the capacity of the farmers in the neighbourhood to furnish adequate stock to keep tlu* machinery in operation. The capi. tal. too" oi| these farmers’ freezing companies was almost in every instance inadequate and finance was arranged by way of overdraft. The mistake made was in believing that the fanners in the locality would be loyal to their own freezing works. Such loyalty was an impossibility for freezing on owners’ account at base means speculating in meat. >mieh speculation turns out well on a rising market, but when values begin to sag there is heavy loss. Many farmers speedily discovered this and the losses soon made them realise that it was better to quit the fat stock on the farm than to take the risk of marketing the frozen carcases in Smithfield. Furthermore the regular exporters of frozen meat, that is those who buy the iat stock and freeze at their own works or have them frozen on a tariff basis have also to be considered. The prices offered hv the regular exporters have been too tempting for the farmers interested in co-operative freezing works and their loyalty to their own concerns has gone by the Board. Mr Jessep admits that there are more freezing companies in tile country than are needed, and that the competition for stock is gradually forcing out of existence all except those freezing companies which are prepared to buy stock to keep their works going only is passing. If that is so then such companies must go into voluntary liquidation for their existence is an economic waste. Mr Jessep think that eventually the control of all freezing compnnie will pass into the hands of a few meat exporters, and adds: “ If the present regulation preventing the free sale of freezing works ■ is maintained and no alternative is provided, in actual fact it means that the large meat exporting firms will eventually gain control of nil freezing works, which do a freezing business only, without the necessity of paying for them,” and the Meat Control Board is helping that movement. LONDON WOOL SALES. The fourth series of London wool sales, which opened last Tuesday, was particularly disappointing to the woolgrowers, especially to those of ■ the 'North Island. Fine wools, that is all grades of merinos and fine crossbreds, sold up to the level of the closing rates of the last series, hut medium and coarse crossbreds, the class of wool produced in the North Island, dropped from a farthing to a half-penny. Notwithstanding a good attendance ot buyers and keen competition, the main, tenauce of the fine wool prices was due to Continental competition. Most -of the Continental countries are suffering from depreciated currencies and exchange difficulties, but in spite of all this they have been forced to make special and strenuous efforts to obtain supplies of wool, which shows that stocks of the raw material must be very small. The wool market will not show any real buoyancy until Bradford conics in. The textile business of Yorkshire has suffered considerably during the past few months i from the effects of industrial troubles. Sooner or later Bradford must come into the market.