FROZEN MEAT COMPANIES' COMBINE.
THE AUCKLAND VIEW NECESSITY FOR CO-OPERATION. BENEFIT TO SHEEP-BREEDERS. (Fbom Oub Own Cobhespondent.) AUCKLAND, January 14. There has been much interest evinced in the proposed co-operation of freezing companies, and to-da.y a Herald representative interviewed Mr Stringer, secretary to the Auckland Farmers' Freezing Company, in connection with the proposal Mr .Stringer laugh-ed at the idea of a combine in the generally- accepted sense of the term, Temaxking that the co-operation proposed was in , the beet interests of the sheepbreedeKS. and of the' reputation of New Zealand meat. He went on to say, quoting iafoqi London, that it was well-known that New Zealand nieat .suffered very considerable' lee& 'thSrowtjli the- freezing in-i dustry - not being interested at Home, .At prfesent nearly all the_ agents at Home had no special, interest in New Zealand mea,t— that was, no interest more than in the meat from Australia or the Argentine, and -were not concerned that New Zealand meat should be- sold more than "any of the other, meats. There was no attempt oq the part of the agents to do ' more than simply effect sales at such a price as would command an easy and ready sale for 'whatever article they had at their disposal. . There had never, been any practical interest on the part of-the agents in solving difficulties of the trade or in finding new markets or in placing any brand at a price commensurate with its quality. Contradictory reports were sent out from time to time, especially in regard to duality, end various claims were made oeeause the sheep were of some particular character, such as merino, which had long since ceased to influence the flocks here. There was no one at Home to study and^ opfen up new markets and report as to the various causes which led to the extraordinary fluctuations in price from time to time.- These ;were_ some of the disadvantages that the freezing companies in New Zealand laboured under. . Then again,"-Mr, "-Mr Stringer went on to say, there, was no one to. report on the actual statistical position from time to time, and consequently the Mglr prices which might be "realised, in the market were seldom gained by the shipper, and there was no -one in authority to advise in reference to £ha proper discharge of the perishable goods. . It was well known that the freezing Tjonipanies in .New Zealand took the greatest care in the slaughtering, dressing, freezing, and shipping of meat, and it was put on board in a thoroughly clean condition and well frozen, but some of those interested in the industry who had been Home reported that it was painful to see the carelessness displayed in the discharge of the meat and the filthy condition in which some of the carcases arrived. All these matters could be improved if there was someone with authority to act for the companies. These were 'the arguments for co-operation^ The object of the conference was to bring the various companies together, to sea that New Zealand meat was properly 1 handled and properly placed on the market, 'and to open up new marJrete. v It was not a combine, but simply a co-operation for- the protetcion of the industry. As a matter of fact, the cooperation would be of more benefit to the producer than to anyone else, for it ■would mean that with better markets at Home the sheep-breeder would realise a better, price here. One of the ideas was to have a properly-qualified agent in London for all New Zealand meat to look after the discharging of cargo, new markets, reports, etc. — someone who was more interested in New Zealand meat than the mere commission otl ' -the sale. Tliere -was no idea, of increasing the freezing ch'argjes, and, as a matter of fact, the co-operation i should reduce" the charges, because by ' leading to better trade on the Home market, and therefore increased consumption, it would mean larger quantities going through, and it always followed in freezing- that the .larger the quantity handled the cheaper the freezing could be done. THE. PRIME MINISTER'S VIEWS. (Fboie Oub Own Gobkespondeht.) \ CHRISTCHURCH, January 16. "I have no official intimation from the High Commissioner in regard to the dealings of the American Meat Trust -with our frozen- mutton and lamb at Home," Sir Joseph Ward stated to a Press reporter this morning. " Neither has the matter been brought directly under my notice as head of the Government. Further than that, I do not know anything more than the man in the street in reference to the proposed combination of New Zealand meat export companies suggested by representatives of North Island freezing organisations. ' If you were to ask my personal opinion as to the advisableness of such a step I should certainly say that, on broad principles, competition at this end is essential in the general interests of our sheep farmers. If we had one centralised organisation as the result of intense com; bination there_ would be a danger (which in practice might not arise, but which on the face of it is still apparent) that a great combination of interests at one end would entail 1 " tj^e 'creation of such a powerfullycontrolling factor that it would be hard to predict what it might lead to in the course- of a few years. While I hold this view, I am ako of opinion that numerously- i scattered freezing works overlapping each | other to a considerable extent do more harm than good in fictitiously raising prices to the grower, and thus paving the way to an inevitable reaction. But that is quite a different matter from an amalgamation of interests on the producing side. Three or four powerful freezing organisations ©Derating independently at this end seem
t"> be more suited to the general interests of the Dominion. At the other end there is no doubt if combination for selling purposes could Be secured by one or /two powerful organisations, acting in the capacity of sellers but not of buyers, it would assist matters very materially. The more sellers there are more drastic becomes the competition, and as too frequenty time is eseential in disposing of large shipments of frozen meat haste can be achieved only by the various sellers cutting prices to make sales. But I know enough of its quality to affirm that New Zealand mutton will hold its own in spite of any ordinary or extraordinary competition. The quality of -our lamb and mutton is so good, and such care is exer- ] cised in selecting what is sent out of the J country, that so long as these desirable conditions Tivere maintained we have nothingto fear from outside competition* What ie suggested of the American Beef Trust . is that it undersells our .mutton and lamb in order to secure orders for beef. This possibly ie practised at. Home, but so long as our mutton and lamb is not purchased by members of the- trust- at less than ite standard value, then the thing is not an unmixed evil from our point ofviewC We certainly cannot blame the sellers for taking advantage of high prices if they are available. .Ho"wever, the whole thing is a very big "questi6n, and as the industry is one of our best and most ' profitable, all interests would best _be served by maintaining fair competition.' At the same time it -might -be productive of much good if those < connected with the export trade* were to confer, with a., -view to pushing the" trade to the best poss'ble state of progressiveness.^ It is " doubtful whether a combination on the lines suggested from the ,Nor;th .Island could secure many advantages in regard to 1 , shipping. If the present freights are- fair and not excessive, it stands to Teason that if all the sheep farmers* combined with ■ the object of bringing freights below a paying point that could only be done by the shipping companies becoming interested in the meat in order to recoup the loss on freights. So far as direct steamers from New Zealand are concerned, for some time past no country in the world has enjoyed greater advantages. I am sorry I cannot cay the same of our mail service," Sir Joseph mused sadly. "But that is~ another story."
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Otago Witness, Issue 2810, 22 January 1908, Page 23
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1,380FROZEN MEAT COMPANIES' COMBINE. Otago Witness, Issue 2810, 22 January 1908, Page 23
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