THE MEAT MARKET.

Taranaki Daily News, 5 March 1921, Page 4

THE MEAT MARKET.

The somewhat sudden collapse of the meat market is a matter of considerable concern to New Zealand. For the past few years the Imperial Government has been the purchaser of our meat supplies, and prices have been particularly profitable; and with the depletion in the world’s herds as a result of the war, it was felt that payable prices must continue. Bad industrial conditions at Home and America, however, have caused a big drop in the demand, and the prices offered for most lines are now such as to make exportation unprofitable. Concurrently with the market collapse comes an increase in the shipping freights, and even with this increase there is little indication on the part of the shipowners to supply the necessary ships, especially in view of the situation to-day on the New Zealand water fronts. It is only to be expected that the various meat works are slowing down and not actively buying. Coming on top of the deadness in the wool market, the low meat prices mean a serious loss to the producers and the country, and are adding to the financial stringency caused by the excess of imports over exports. It is to be hoped the condition will be but a temporary one. Whilst 4he latest cables hold out no hope of an early improvement in the situation, the statistical position is such as to warrant the belief that prices must recover in the near future—at any rate to an extent that will offer a payable return to growers. The Imperial stocks held in the Colonies were purchased by Vestey’s, presumable for sale on the Continent. It is understood, however, that this meat has been placed on the English market, whilst the American Meat Trust has invaded the market with meat purchased from New Zealand. It is little wonder, therefore, that prices have dropped so considerably. It was not to be expected that the former high prices would be maintained, and those who bought _ land on this assumption will no doubt suffer. The freezing works in Tarandki have been the means in late years of distributing a considerable sum of money to local producers, who naturally will be adversely affected, to a more or less extent, by a slackening of operations. The one bright feature just now is the big prices prevailing for dairy produce, the mainstay of the province, and the prospect of .payable prices continuing' There is no denying the fact that the low’values of meat and wool are creating a very difficult'position for the Dominion," but we have had a succession of fat years—some very fat years—and we should be able to stand a setback, which in our view can only be temporary, perhaps better than any other country in the world, and one the effects of w r hich we can minimise to a great extent by meeting the situation thus created with confidence and courage.