WELLINGTON NEWS

Hokitika Guardian, 13 December 1928, Page 3

WELLINGTON NEWS

FROZEN MEAT TRADE. *

[Special To The Guardian.]

"WELLINGTON, December 10

Advices from London are to the effect that an agreement has been reached for the amalgamation of the Union Cold Storage Coy (Vestey’s) which is said to lie the largest retailers of meat in the world, with the London Central Markets Cold Storage Coy. Ltd. Including £8,000.000 in 0 per cent preference shares the Cold Storage Coy lias an issued capital ci" £12,000.000. Some years ago it acquired all the ordianry capital in nine hundred concerns, and in addition to its stores it owns a large fleet of steamers for the transport of meat. I lie London Central Markets Cold Storage Coy., which was formed thirty years ago, has an issue capital of £218.550.

The Smithfield and Argentine Meat Coy., which lost heavily during tin 1 past two years, held its annual meeting in London on October 24th, when the Chairman (Sir James Caird) had a good deal of very interesting information to impart concerning the frozen and chilled meat trade. He stated that the aftermath of the meat wai took much longer to settle than wa; expected. The year 1.028 opened ii the Argentine with a shortage of fa' cattle, and with prices 2d per cenf higher than in the previous year The additional cost reacted on the de maud in the United Kingdom and tin Continent. Germany in March lasi decreed a reduction of free imports ol meat from 102.000 to 10,000 tons pci annum, and other Continental conn tries, in view of their finances, wen doing their utmost to spend as little money outside their boundaries a> possible.

Italy, which had become a good cus tomer since the war, took little this year from the Argentine. The total shipments last year from the Argentine to the Continent totalled 205,<03 tons. This year to the end of August the shipments were only 73,613 tons Output means everything. A smal output means a greater cost of production, as the overhead expenses so heavy in a meat works—have there fore to be spread over a smaller poundage. It was stated that a new fa'do-u-ns looming on the horizon which—when it eventuates —as it will soonei or later-will have a far-reaching effect on Argentina and her present customers. The allusion was to the generally anticipated advent of America into the Argentine for additions to liemeat supply.

Signs of America’s meat shortage are becomingly increasingly evident At present she bars Argentine frozen and chilled meat, hut she is taking considerable and increasing quantitm* of canned meat from there and tieneighbouring countries. In 1925 slm took 10,000,0001 bof canned meat. Tthe end of September this year she liar taken 40,009,00011) of canned meat, ef' In 1026-27 America took from New Zealand -100 tons of fres'cn meat. Tins last twelve months —say up to the year ended September 30th, 1028. sin took 13,500, principally beef. Prices of meat in America are steadily rising.

The Chicago wholesale prices lor sides off beef have risen steadily over this year from lid per lb in April t/ 13d in September. Looking to difficulties of transport and iced ing, prices will likely rise still higher in the winter months. Tn Smilhfield the average weekly price of chilled sulciover the same period was under f -d pc lb. The population of America total* over a. hundred million, and is increasing at the rate of two million per annum, which emphasises her present need of meat supples, lo the lellective man it is a question to he pondered over, whether we shall not have to revise in the near future our piesent ideas of meat values. OUTLOOK FOR RUBBER. The Stevenson restriction plan with respect to rubber ceased to opeiate as from November, and all Government interference with the industry is thu* removed, but the outlook is by n* means depressing. Summing up the prospects of production and eonsump tion in 1929 an authority considers b probable that the quantities to Iktaken by manufacturers during 102woukl about equal the unrestricted production of some 700,000 tons. Looking beyond 1929 it had to he remembered that as the result of the lowprice of rubber little new planting bad taken place during the years 1921-2' and there had been only a moderate extenson n 1925-27. t In the last three years a good dea of “ rough-and-readv ” planting had been done by tlie natives in the Dutch East Indies, but a fair proportion o the new planting was to offset wastage arising from the severe handling c»the trees by natives in the past. Y it the price of rubber at a low level tbo’-i would he less inducement to undertnk' further planting. His opinion wa* that the industry was on the up-sprnr of the pendulum and that the P 101,,u erß of rubber were to receive an adequate return for their enterprise.