THE FROZEN MEAT TRADE.

Otago Witness, Issue 2810, 22 January 1908, Page 6

THE FROZEN MEAT TRADE.

So far as the freezing companies, the shipping companies, and the exporters are concerned, the frozen meat trade just now appears to be running very smoothly, and the farmers at one end and the distributers at the other are making no «ign of trouble. The freezing and shipping 'companies and the -exporters " are -undexr stood to have had a meat successful year's -business, and are, naturally, content to leave well alone m the conduct of their respective brandies of the trade; the London salesmen, .j^oo, -have enjoyed ' a i period of profitable trade, and the "c.i.f." 'buyers canha,ve little to complain of as regards the -past year's operations, farmers have received, good (prices for their stock, and the most serious complaints' are of unprofitable business on the part of l English retailers. "But, acortiing to the Newspapers, momentous changes in the trade tore impending. On the one hand North Island growers are stated to be conferring with a section .of the freezing companies with ihe view to devising means ol selling their meat direct to the retailers, if not to the consumers, thus avoiding the payment of commission or profit to the middleman. This movement is, ko far, nebulous in the extreme — it is ' even doubtful whether it exists save in the imagination of the North Island journals which have made the news. — and it may be dismissed -from further consideration with the remark that- there is already established a. company with precisely the objects which axe assigned to the alleged movement, but which has found direct dealings with -the consumers to be a trade by itself, requiring special -knowledge and attention, and cocsequently has not extended its enterprise in that direction ; it uas also not sought to establish freezing works of its own. The other movement, however, must be taken .seriously, as its inception is attributed to the largest operators in frozen moat in the "United Kingdom, arid ths project as described is revolutionary in scope. The particulars given by the London, .correspondent of the Pastoralists' Review, an unquestionable authority, aTe to .the effect that the, mem-. bers of -the American Meat Trust, having added business in frozen mutton to that in American beef , are taking steps to- obtain the same control of the sources of supply of the former as they have long possessed of those of the latter — Roosevelt 3 s antinot content to "buy from th© importers, trust crusade notwithstanding. They are or even from the colonial and South American freezing companies or dealers, but are determined to eliminate * all agencies -which at presant participate in the profits of the trade freezing companies, colonial dealers, English importers, and Smithfield agents, and secure all the profit at every stag© for themselves. We are, in short, led to fear that they -wdlt^buy from tne farmers at their own jrice, freeze the meat in their 'own works, ship it by their own v«i3sels, aJnd se-U it a-t -tii^ir .owja -p-no& in their own shops. The correspondent J quoted states that three of the four great firms ot companies forming the American Meat Trust have already purchased meatworks in Argentina or acquired interests in them, and that one, if not two, of the firms have extended their operations to New Zealand. Of the former statement there is confirmation from other sources; regarding the latter, it can only be said that although an emissary of the Swift Company visited New Zealand last year that powerful organisation has not yet made its presence felt in the colonial markets, and London reports mention it only as a "c.i.f." buyer. There are, however, . other organisations . owning or controlling large numbers of retail shops in the . United Kingdom which also own freezing works in Argentina, Australia, and New Zealand, and »it is- not likely that the American coiripanies will- allow them to continue long in the' enjoyment -of the advantages in, trade which are thus obtained. Naturally, the Smithfield salesmen and all the agents and parties concerned in Australasian meat interests are agitated by the shadow which is looming over them, the trust being regarded as allpowerful. The nope is expressed, however, that in approaching the New Zealand and Australian meat -producer the Trust will meet some opposition in obtaining its ends; it would be quite fatal to the profitable permanent existence of the Australasian industry if the works got into the hands of the Americans. The correspondent has never been a panic-monger; but in impressing upon his readers the gravity of the. situation he utters the warning : "When the octopus of the American Meat Trust has fixed its tentacles tightly over the Australasian meat trade, then look out!" /It would be more- to the purpose to be told hew to" avoid the grasp oi the tentacles. THe colonial grower is now forew&tued, but he is by no means forearmed. The- farmers' direct finpneial interest in most of the New Zealand freezing works is comparatively small. On the other hand foreign capital is largely employed in the industry, and it is a question to what extent the owners of this capital would bs amenable to the approaches of a powerful enemy who sought to gain his .ends by diplomacy before declaring open war. The situation, though possibly not so imminently dangerous as is represented by the London authority undoubtedly calls I lor ths union of forces on this side. It is unfortunate that *i *uch a juncture the freezing companies should have considered it necessary to raise their

rates, thereby creating a feeling of irritation amongst many large exporters which has only partly found a vent in threats to establish -opposition works. TJiis would be ja, suicidal proceeding in the face of auch a danger as is threatened by an American invasion, and it ±b earnestly ta be hoped that the differences will be reconciled. Producers, dealers, and exporters alike have during recent times obtained much more liberty than formerly in their dealings with the freezing companies, most of which -are now willing to freeze for anybody instead of confining their operations to meat which is their own property or placed under their con- i trol as regards shipment ,and sale. This facility is the producers' and dealers' - safeguard against combinations to " bear" prices or otherwise assail their interests, and it can be conserved only by loyally ! supporting the companies, -which' grant it. Those also, which are interested in meat works in the colony as well as in distributing agencies at Home must be considered, as -these assure producers of regular competition for their -stock-, the as- < similation of these by the American octopus would be a disaster to the 'industry. * The outcry which wa# caused by 3S. T. Hooley's proposal to buy up the freezing i works of Australasia, cannot -be .fprgottenj ! but tteit project was never regarded as likely to be accomplished : the American Meat Trust, judging by its histbry, will make its ground sure -before declaring its intentions or even expressing its wishes. To wait for it to make the first move would be to throw -away the possibility of defence. Therefore, take at once the warning -to "look-out."