FALL IN MEAT PRICES.

Taranaki Daily News, 14 May 1920, Page 5

FALL IN MEAT PRICES.

effect on the dominion. SERIOUS LOSS TO PRODUCERS. The information that the Imperial Government has decided to' reduce the price of imported mutton in Britain was discussed in Auckland on Tuesday by people interested in the frozen inWt trade. The opinion was expressed that such action should lmve been taken by the Food Controllet immediately upon the cessation of hostilities. It<Vi l ns contended that had the meat been olfu'ed eighteen months ago at the prices now quoted _ the> present conation in the stoves in Britain and in the overseas Dominions would have meant h substantial loss to the Imperial Government, but by deferring it the position lias been rendered infinitely worse. Not only has the loss still to be faced, but the congestion everywhere is threatening to cause a setback to one of the staple industries of the Dominion.

One of the effects of the high prices charged for meat in Britain was a marked decrease in the consumption of meat, and it is assumed that even at the reduced rates it will be a considerable time before consumption will be materially increased. This, in view of the fact that the storage capacity of the Dominion is taxed to the utmost, is regarded as a serious matter by those who understand the position. It was stated by one authority that prices probably would have to be stili further reduced to facilitate a clearance of the British stores, and prices for the coming season's production in the Dominion would drop in sympathy. The opinion was candidly expressed by one expert that the Food Control Department in Britain had "muddled" the whole business of meat distribution, and that the producers of the Dominion would have to suffer the consequences. What these would be, he said, nobody could predict, but it was safe to assume that after the end of tbe requisition period there would be a marked drop in prices. The fact that the Imperial authorities had at last been compelled to realise that special action was necessary to clear the congestion in the British stoves, indicated that prices would require to be kept at a low figure to remove the congestion in the Dominion stoves. As far as New Zealand was concerned we were confronted with the position of having a full season's supply to dispose of when the new season was starting. It was estimated there would he at Isat 4,000,000 carcases in store in November, and this, together with what would be either afloat or unmarketed in Britain, would at least represent a season's production. It did not require much thought to realise that the new season's moat would have a poor chance of being marketed during the season in which it was produced, even if it w"ere offered at considerably reduced rates. The suggested extension of the meat requisition was mentioned as a desirable thing in the interests of the producers, but doubts were expressed regarding the willingness of the Imperial authorities to grant an extension, in view of the drop in prices. The conference convened at the request of the Prime Minister by Sir James Wilson, president of the Board of Agriculture, to consider the extension of the requisition and shipping matters, has been fixed for May 27. The position will he thoroughly considered by all parties interested at this meeting.