THE MEAT POOL

Hauraki Plains Gazette, Volume XXXIV, Issue 4621, 5 November 1923, Page 2

THE MEAT POOL

WORKING EXPLAINED. ADDRESS AT PAEROA. An interesting address was delivered by Mr A. E. Harding, president of the Auckland branch of the N.Z. Farmers’ Union, in the Coronation Chambers on Friday evening last. The chair was occupied by Mr G. Buchanan, who extended a welcome co Mr Harding on behalf of the Paeroa branch, and expressed regret that there was not a larger attendance of farmers. Commencing his address, Mr Harding said that there were many grave misconceptions concerning the operations of the Meat Pool and the Meat Producers’ Board, and he would en--deavour to lay a few facts concerning its operations, before the meeting. The executive of the Meat Pool was composed of seven tried and experienced men, who dealt with matters affecting the producers in a broadminded manner. In referring to the operations of Vestys, Ltd., the speaker said that it was common knowledge that, su’ch works as Horptiu, Whakatane, Masterton, Patea, had been compelled t,o close down, and that no less than five farmers’ companies were on the verge of bankruptcy. The banks were standing to lose something like £500,000 through the mismanagement of the various New Zealand freezing companies. In view of this serious position the Government decided to license Vestys to operate in New Zealand. There was at once a hue anti cry raised that the farmers would be ruined, so the Board got busy and passed a resolution to the effect that it would view with alarm the Government licensing any overseas Company coming into New Zealand without the consent of the Board. The pressure brought to bear on the Government by the Board had the desired effect of fully protecting the meat-growers-In Poverty Bay there had been three freezing works, so Vestys bought one of them (Nelson Bros.), thus leaving two farmers’ works to carry on, which they could not do successfully, for the reason that there was not enoughmeat offering to supply more than two works. There were also five works in the Gisborne district. The result was that the price of meat fell considerably. Vestys stated that if the New Zealand companies would consent to their buying in Poverty Bay they would pull down the existing works and cut up the land. Failing consent being given they would build an up-to-date works and lay themselves out to freeze for farmers and butchers at current rates. The Meat Boai’l held many meetings, and carefully considered the position from every aspect. It was fully realised that the banks would be affected, the farmers seriously handicapped, and the London money market upset. The joint and several guarantees handed by rhe farmers to the banks on behalf of the freezing companies in many instances exceeded the value of their holdings, and it was realised that many farmers would be ruined; so it was obvious that the best thing to be done was to allow Vestys to operate. It was ridiculous for people to turn round now and say that the Board had lost control. Did not the fact that Vestys had to come to the Meat. Board for authority prove that it had the right to control the produce. Once the produce left Vestys’ stores in New Zealand the Board, had full power to control. The Board had appointed a New Zealand manager, and a very competent''man had been secured as manager in London. A system had been instituted whereby it was now possible to have New Zealand lamb delivered to any individual in the British Isles on payment of 33si into the Board at Wellington. New Zealand produce of all kinds was in keen demand wherever it was sent, and very, healthy markets were being opened up in Java, Sumartra, and Singapore. Thore was ample s'cope for everyone, and no need for any one section of farmers to have a particular advantage. The farmers, possibly, had not realised t.hat they had been losing £500,000 annually on their produce on thp New Zealand wharves by careless handling by waterside works. Instances were quoted showing how the produce was damaged at the ship’s side, and after reaching the hold. The system of insurance showing the loopholes for fraudulent, transactions was explained, especially as regards' butter. Mr Harding said that it was not an untommon occurrence for a ship loaded with butter, on arrival at Panama, to be boarded by an arbitrator, who had information to the effect that there was likely to be a drop in 'the price of butter. He would then inspect the butter in the hold and claim, say, £lOOO damages. The insurance company would appoint an assessor, who would certify to the amount, knowing full well that he would be rewarded by a share of the insurance money. The New Zealand Farmers would go on with closed, eyes to these practices, unless they were prepared to band all companies together and present a solid front. It was their only hope of getting redress and a fair deal. To cope with the tremendous loss and damage in the loading of meat in New Zealand the Board had appointed official supervisors, who had the authority to inspect meat from the loading of it at the works until it reached the hold of the ship. Thus it was hoped that many thousands of pounds worth of damage would be saved the producers. Mr Harding said it was anticipate I that if the meat and dairy producers would only “pull together” the benefit, could not be estimated. Some little time ago representations had been made by the butter producer? to secure a reduction of freight on their produce. The Board’s London manager had t.aken the matter up, and after much “battling” with the shipping people had successfully arranged for a reduction in freight of 6d per box. This reduction had meant a clear saving of £150,001) to the New Zealand butter producers. The questino of suitable shipping arrange-

merits and reasonable freights had' ; seriously tackled by the Meat., Boafrd. it had made an . offer to givW shipping companies a monopoly for' 1 ’ five years and guarantee a sum of £34,0C’.0,000, provided’ those companies would, undertake to arrange a fair an i jus> rate of freight. Failing that, the meav producers were prepared to build ships f or their own purposes, and so be inaap en( j eil t of the various shipping combines Through- the Efforts of the Board graders had beeii'.appointed by the Government in and the. meat carefully graded, wifKu»^.. l (. esul t that now only the best shipped overseas. Mr Harding said ; he was prepared to prove that the Meat Pool had saved New Zealand £1,250,000 in the first 12 months of is existence. It had also brought about the stabilisation of the meat output by means of regulating the shipments from New Zealand. Space in ships had been so arranged by the Board that the produce reached London at regular intervals. The arrangement had worked satisfactorily to all concerned, and had saved the producers thousands of pounds. When there' was congestion in London - it was very often necessary to refrosc the meat, which entailed heavy pense, and owing to the London charges being so high it had beenproved that it was far. cheaper to hold the meat in New Zealand. By avoiding congestion in London the barge system of unloading had been practically done away with, and the meat was unshipped in a fresh, clean condition straight into railway trucks. Unshipping meat into barges had been very destructive, and the. Beard had made every endeavour to have the system abolished. The speaker contended that the demand for New Zaland produce had in no way decreased. In 1914, 5,000,009 carcases of lamb and mutton had been shipped into Great Britain, while in 1920 the figures had been increased to 9,000,000 carcases. Of the total meat imoprted into Great Britain it was worthy of record that New Ze.»land supplied 63 per cent, of lamb, 58 per cent, of mutton, and 5 per cent of beef, while the pork imports hail increased enormously. Mr Harding said that in his opinion, before very long the pork trade would become a greater asset to New Zealand than beef. As regards mutton; the speaker said that the farmer with sheep • was the man in the best possible position if he would agree’ to co-operation and do his utmost to produce the best. There was approximately 6,000,000 sheep short in New due, no doubt to the slump in 1920-21, when the banks forped the farmers’ hands, compelling them to sacrifice thousands of sound breeding ewes. There was a serious decrease (n sheep . in Australia also, and yet the demand for lamb and mutton overseas was increasing rapidly every year. He felt confident that the New Zealand sheep farmers had the rosiest future ahead , of them. Asked as to his opinion of the success of the Dairy Pool, Mr Harding • said he felt confident that the dairy producers could rest, assured that the scheme would be a complete success in every way, and he anticipated that a saving of something like £2,00'0,000 would be effected.