The Taihape Daily Times AND WAIMARINO ADVOCATE. THURSDAY, MAY 27, 1920. PROSPECTS OF THE MEAT TRADE.

Taihape Daily Times, Volume XI, Issue 3497, 27 May 1920, Page 4

The Taihape Daily Times AND WAIMARINO ADVOCATE.

THURSDAY, MAY 27, 1920. PROSPECTS OF THE MEAT TRADE.

With which is incorporated “The Taihape Post and Waimarino News.”

A report on the position and pros- ' pects of the meat trade presented to the British House of Commons, bear--1 ing' the signature of Sir . Auckland ' Geddes, furnishes tha information in convincing detail which alone has made 1 perfectly clear the hitherto enigmatical marketing fluctuations. Such information was long overdue if trouble arising from misunderstanding were to be avoided. However, it is now beyond doubt that shipping shortage is, and has been, the sole cause of what misconception and disagreement lias resulted in connection with the export of New Zealand meat during the war period, and since war ceased. It must be admired* that almost perfect machinery for acquiring with tolerable exactitude the surplus each meatgrowing country can export has been evolved as a result of the war. This | machinery has also gathered dependable information as to the meat re- ; quirements of the various countries of the world, including sources of supply, and has deduced from that information the meat prospects of the future. The one outstanding fact is that the world supply of meat is greater than the demand by some 51,000 tons, and wene sufficient shipping available the ! meat supply would easily exceed the I world's requirements. The report gives exact figures of the production of meat in 1919, also of the requirements of the various meat importing countries; it also furnishes the number of insulated vessels and their respective and total tonnage, showing beyond doubt that the meat requirements far exceeded the carrying capacity of the worldj's total of insulated ships. From the report it becomes obvious that meat congestion was unavoidable, and to be just, it seems that the British Meat Control is entitled to appreciation for the good work accomplished, for it is surprising that storage troubles have been no more severe than those now being experienced. Nevertheless, the report furnishes no apparent good reason why NeAV Zealand producers should be seriously handicapped with congested storage while relief might be given by special effort of the Imperial authorities; neither does it disclose that storage congestion in other exporting countries has been allowed to reach so grave a stage as it has in this Dominion. From the amount in store, New Zealand has to carry the larger part of the surplus that ships in insufficient numbers are unable to take to market, and if the surplus over demand is not more than 51,000 tons this Dominion

seems to be carrying the whole surplus burden. But, considering the meat problem on a broad basis, it has to be realised that past troubles have i resulted from the supply being greater than the demand, and to make matters worse there has heen too few ships to get meat away to where it was required. The effect of meat being in greater supply than demand will undoubtedly result in meat values being somewhat less than during the war; but opportunities for opening up new markets in the Pacific, chiefly in America, must operate in preventing decline to an unpayable level. Indications are that meat-growing will continue to be satisfactorily profitable, with possibilities of improvement. It is notable that rhe t report points out that as regards mutton the British Empire can become self-supporting, Australia and New Zealand exporting enough to supply the needs of the United Kingdom; but, as regards beef, the bulk must come from America. That is probably quite correct, but if there is a shortage of Empire beef the fall in cattle values now being experienced should only be temporary, and it would he wise for farmers in this district to take note of the direction \ cattle sold at stock sales are going. I In fact the report plainly states that, "The present position of meat is 'Only the natural result of the late war, and consequent loss of shipping, general disorganisation of transport and distribution. The delay in discharging overseas steamers, the present oversupply of meat in the United Kingdom and the resultant shortage of freezing space in New Zealand, must be only a temporary phase of the aftermath / of the five years war."' Therefore, whatever fluctuations there may be in meat marketing during the ensuing twelve months they represent nothing of a permanent character. This is explained by a staement of the world's insulated shipping in 1919, and by an estimate of shipping in 1921. The world possessed last year 192 ships aggregating 1,326,000 tons, Britain contributing 155 ships totalling 992,000 tons. Next year the world will have 254 ships aggregating 1,871.000, Bri- ■ tain owning no less than 201, of the 254, totalling tons. Britain will next year own more insulated shipping than the whole world owned in 1919. This must be taken as most gratifying, for despite enemies and jealousies Britain will still continue , to "rule the waves/' commercially and navally. If British ships are reasonably used for building up the British -, j Empire there need be no fears for the Empire's future. Future governments J can safely be left to see that no part of the great Empire is exploited to the advantage of other countries, combines or individuals. The statement of Lord Inchcape about a pending slump in shipping becomes quite intelligible, with the information the report, over the signature of Sir Auckland Geddes, supplies. Governments of the present may not be blamable for what storage inconvenience is being experienced, but. they will be held responsible next year if Dominion producers are allowed to suffer los s through shipping shortage while the Empire owns such an overwhelming preponderance of the shipping of the whole world. It is undeniable that in addition to a raipdly increasing demand for meat in Britain, marketing prospects are particularly good. There is a growing demand for mutton in America; Italy requires an additional 150,006 ton s per annum; and it is well-known that Japan and other Eastern nations are awaiting whatever meat they can procure. Shipping is the vital consideration, but if British ships are fairly used in the development of British trade the shipping shortage problem should be entirely solved next year. If it is not the only solution for this Dominion lies in a State-owned shipping line, adequate for its requirements both as regards exports and imports. When it is understood that the world is pro-.. ducing more meat than it can, under The circumstances, consume, and, further, that he number of ships is alto- j gether insufficient to transport meat ! from where it is grown to where it is I wanted, temporary decline in values, • and congested cold storage are nothing ] to wonder at. . '