The Daily News. TUESDAY, MAY 11, 1920. FROZEN MEAT OUTLOOK.

Taranaki Daily News, 11 May 1920, Page 4

The Daily News. TUESDAY, MAY 11, 1920. FROZEN MEAT OUTLOOK.

According to a recent cabled message from London, imported mutton is to be sold at sixpence per pound. This should have an immediate effect in reducing the congestion at the cold stores in Britain, and lead to a revival of satisfactory trade conditions. It is stated in "Weddel's Review for 1919 that the world's output of frozen meats in that year was about 1,078,000 tons, as against a pre-war output of 776,000 tons, of which the British demand absorbed all but 47,000 tons. It is estimated that British consumption fell to 500,000, and the Continental was about 400,000 tons, so that the world's supply exceeded the demand by 178,000 tons. At the end of 1919 Britain had in store and at hand about 150,000 tons, something like four months' supply, while a further two months' requirements were on the water. This position is the result of control by the British Government, and has resulted in such congestion at the New Zealand freezing chambers that in some cases killing has been suspended. At the price paid by the Imperial authorities for the Dominion's frozen meat they could have sold the whole of the supply at a reasonable figure and secured a substantial profit, but they chose to continue the control of the quantity released,for sale, as well as the price, to the detriment of the overseas producers. The new order as to mutton is certainly in the right direction, and would seem to indicate a reversion to the free market. The trouble is largely due to the subsidies paid by the Government to British producers, but, in fairness to the Dominions, their trade should not have been prejudiced by the fixing of high prices and limited release. Flocks and herds in the countries concerned in export trade have increased and in these countries considerable extensions of cold storage have become necessary, involving a very large capital outlay. As the cold storage capacity in England is equal to four months' requirements, it could hardly be expected that additional eold stores should be erected there, though as a matter of national security it would seem prudent, to be able to store a year's demand, so that in the event of war or other complications the consumers would be well provided for. The. Review in question lays stress on the contention that the regulation of shipments and the adjustment of nrices, so as to keep stocks moving, are the real remedies for congestion at the discharging ports. There are good reasons why the producers should endorse this view, for the reason that France possibly, will take only 200,000 tons

during tlie current year, yet as soon as her flocks and. herds get back to normal she will provide her own supplies. Italy's shortage is being made up, Belgian prejudice prevents success iu the market there, and trade with impecunious Germany is out of the question, while in Britain the producers are being stirred up to greater production so as to be more independent of imported supplies at high prices, especially of beef and bacon. The outlook is not encouraging, but it might be worse. More ships are being built, the meat- | eating population of Britain is increasing and the great improvement in the pay of the workers will enablft them to become far more liberal purchasers than has ever been the case previously. The end of the overseas commandeer will cease on June 30, and so will the subsidies to the English producers. All that is wanted is the disposal of the accumulated stocks, followed by a free market, and then the producers of the Dominion will have a fair field, while, if the right steps are taken new markets should be found. The need for greater production in New Zealand is insistent, and there is no fear that the supply will exceed the demand, though there is a danger of the high prices for dairy products considerably diminishing the area of land available for grazing and fattening. Apparently the position of the export meat trade is showing signs of improvement, and many consumers in New Zealand would like to see an extension by the freezing companies of the system adopted in some cities and towns where these companies cater directly for the retail trade, giving the public a chance of obtaining some of the best meat instead of having to put up with an inferior quality! much of which should find its way into the boning sheds.