SHIPPING AND PRODUCE.

Taranaki Daily News, 19 May 1917, Page 2

SHIPPING AND PRODUCE.

' OUTLOOK KOU THU COMING SEASON. VARIOUS VIEWS (From Our Own Corrospndent). Wellington, Thursday. The seriousness of the difficulties arising from the shortage ot' shipping space is rcognised in shipping anil commercial eirt.o.i in Wellington, but there is a tendency on the part of the business men to deprecate anything in the nature ofalarm at the present stage. The shipping arrangements made by the Imperial authorities, who now control practically all the vessels trading to New Zealand, have yet to lie nnnounctd, and exportera are hoping that the responsible men in London will make a special effort to lift the heavy stocks of Imperial produce —meat, cheese, butter and wool—now lying in this country. If the , visible supply of shipping is not increased, the outlook will be very grave indeed. There is no room for difference of opinion on that point. The official figures show that at the end of last month there were 2,055,000. carcases in store in New Zealand, for which no allocation of shipping space has been made. In addition there was a certain quantity of mea,t for which space was expected to be available within a short period. The cold stores were capable of holding 4,370,071 carcases, so ■ that there was a substantial margin of storage space still at the disposal of the farmers and the freezing companies In regard to dairy produce, the'eool stores contained last week nearly 150,000 crates of cheese and about 200,000 boxes of butter. These stores, also, were not full, and it was estimated (hat they would not be taxed beyond their capacity djiring the present season, Avhich will close in the ordinary seasonal course during the next few weeks. The immediate problem of the factories and producers in relation to the stocks in store is that of payment on account. The produce represents an enormous amount of capital, and as the Imperial authorities make their payments f.o.b, difficulty is being felt in many quarters. But it appears that the Government is making an arrangement that will assist the sellers by providing money on account.

The crux of the matter i? the outlook tor the coming season. If additional shipping is not provided, the stores will not be empty when the new season opens and they are likely to be filled before the season has run manv months. Then the freezing works and the dairy factories will have to refuse to handle supplies and the farmers of New Zealand will be up against a problem that they have not had to face in a serious form for a generation. They will not be able to sell their meat and milk. A reporter who made some inquiries on the point in Wellington yesterday gathered that exporters and shipping nien are not inclined to 'believe that a crisis of the dimensions indicated is going to arise. But they assume that preference will continue to be given to meat and wool in the allocation of the available shipping space, and this may mean trouble for the dairy farmers, psfrticularly in respect to butter. The Imperial authorities want cheese for the army. They appear to regard butter as a luxury. "No exact information regarding the prospects for the coming season is available," said one gentleman. "We cannot tell how much space will be available, and in the absence of figures bearing on that point it is impossible to say what difficulties are going to confront the exporters. My own impression, based to some extent on private advices but mote generally on the known needs of the United Kingdom, is thab arrangements will be made to move our moat, wool and .cheese. Britain would be justified in drawing her supplies from points nearer home than New Zealand if she was able to do so, but I think that tin situation will demand the use of all the available sources of supply, New Zealand among the rest. There is a world shortage of meat, wool and cheese. If Britain could not get our stuff, of course ,she would have to do without it. But I believe she will be able to get it. The submarine campaigi is at a period of maximum intensity and experience suggests that it will decline in effectiveness presently, while the active co-opera-tion of America is bound to ease the shipping problem. I may be wrong, but the alarmistß have no more information than I have."

A gentleman representative of producing interests Baid that he thought the farmers could await the development of the situation without very much anxiety. They had enjoyed two very good seasons and they were now finding increasing difficulty in maintaining their full output, owing to the shortage of labor. If they were required to relax' their efforts during the coming season, owinir to lack of shipping space, they would lose some money, but the check would not be disastrous, provided that'the farmers met it intelligently. There would be a definite ultimate advantage in the increase of flocks and herds. This gentleman added that he felt sure Mr. Massey and Sir Joseph Ward were doing their utmost to relieve the position and he had high hopes of a substantial increase in New Zealand's share of the ships during the second half of the present year. The suggestion that additional cool storage should be provided in anticipation of a shortage of shipping next season does not meet with much favor in any quarter. The ' Dominion's capacity for storing frozen and dairy produce has been increased substantially during the last t\yo years, bu|t this has been done mainly in the widy of ordinary development. The construction of cool stores specially to meet a passing difficulty would involve a permanent charge against the industries concerned, and moreover it would lie a speculative venture. If the shortage of shipping continued beyond a certain period, the extra stores, filled with perishable products, would become merely an additional embarrassment. Tho farmers wouM be worse off than if the,' had kept their stocks on the hoof and reduced the production of the dairies. THE FORTHCOMING CONFERENCE. IMPERIAL ARRANGEMENTS. By Telegraph. —Press Association Auckland, May 18. Replying to a deputation from local freezing companies as to the allocation of shipping space and direct Auckland representation on the shipping committee, the Hon. A. H. Myers stated tha a conference will be held next ween between the National Efficiency Beard and the Board of Trade and Requisition Committee with a view to ,'ubmitting a report dealing with the provision, of storage of meat and dairy produce. The

conference will also consider the policy that the Government should recommend to be carried out by the farmers in the immediate future regarding the .'homing' and killing of stock, nil 1 matters relating to agricultural and pastoral industries generally. Mr. Myers added that as far as ho knew the Imperial authorities had 110 intention of comraandeerin-,,' a certain large ! steamer engaged in the Hew Zealand mail and passenger service. They had, i however, already commandeered four oat J of the five cargo vessels trading between the Pacific Coast and Now Zealand. The Minister also stated that arrangements had been made with two shipping companies to convey wlicat from *atralin, to sTow Zealand, and to cairy 30,000 tons from Newcastle to New Zealand every month. IMPORTANT SUGGESTION. FOR RELIEVING THE SITUATION. , In connection with the shortage of shipping, Mr. Gunson, the Auckland representative on the National Efficiency Board has forwarded the following telagrnm to the chairman of the hoard:— "It has been suggested, and it seems an excellent proposal that the British Government be requested to negotiate with the. Canadian and American Gov> ernments to receive and credit the resDective Governments with all meat, cheese and butter they can take on their western coast, and supply from their eastern seaboards to England an equiva- ! lent amount of American and Canadian products. The suggestion is that all freight vessels from New Zealand should be diverted to the west of North America. Half the vessels would carry equivalent freights owing to the short voyage and through a sea' clear of Bubjnarmes. I suggest this proposal is of sufficient importance'to justify it being coromuhicated at once to the. Acting-Premier." Commenting on the above, Mr. Gunson said there was a large population on the west coast of America and the cost of transportation of products from east to west is as .great as the cost of . sea carriage from New Zealand to the ports on the western seaboard. BIG STOCKS HELD. In view of the recognised shortage of shipping space for Dominion profluce, the following figures will be interesting. They show the quantities of frozen meat in store on April 28, for which no space allocations have been made:— s North Island.—Quartevs of beef, 380,742; wether mutton. 475.254 carcasses; ewe mutton and lamb, 749,294 carcasses; oilier meat for Imperial Government .10,493 carcasses; total, 1,330,783 carcassen. Storage capacity (excluding freezing chambers) for tlie North Island, 2,879,011 larcasses. South Island.—Quarters of beef, 17,572; 'wether nnittcn, 00,353 carcasses; ewe mutton and lamb, 391,981 carcasses; other meat for .Imperi.il Government, D 372 carcasses; total, 1,018,278 carcasses; storage capacity, 1,491,900 carcasses. Grand totals: Quarters of beef, 407,814; wether mutton, 677,007 carcasses; ewe mutton and lamb, 1,641,275 cartasses; other meat for Imperial Government, 28,863 carcasses; total, 2,665, 0.61 carcasses. Storage capacity, 4,370,071 carcasses.