The Daily News. SATURDAY, APRIL 2, 1921. PRODUCERS’ PROBLEMS.

Taranaki Daily News, 2 April 1921, Page 4

The Daily News. SATURDAY, APRIL 2, 1921. PRODUCERS’ PROBLEMS.

During the last fortnight considerable attention has been paid to matters affecting the primary producers of the Dominion, especially as regards the adverse conditions as to the frozen meat trade. The main question naturally centres upon prices, profits and losses, and several reliable pronouncements have been made showing fairly clearly the position of affairs and the necessity for remedial action. During the period of the commandeer by the Imperial Government the prices received for frozen meat and wool gave the producers a margin of profit that was at least satisfactory, and they were relieved from all worry or expense connected with shipping and marketing. When the commandeer terminated so did the profitable market, and the producers are now faced with much lower prices, greatly increased shipping freights, higher expenses for freezing, and a disorganised Home market, which Mr. J. C. Cooper (Managing Director of the Wellington Farmers’ Meat Company) said he found to be “in a most disgraceful state, and it would take years to remove the impression of its unfortunate handling from the mind of the British public.” Sir Thos. Mackenzie supported this assertion, in a recent Press interview, when he said: “I think that the meat situation was badly handled after it was transferred from the Board of Trade to the Food Controller.” The difference between ■the charges paid by producers before the war and at the present time was clearly demonstrated by Mr. Cooper at the recent meeting of producers at Masterton. Railage charges are almost double, freight almost treble, and the total rate, including bank exchange, commission and insurance for mutton and beef is now fourpence, and nearly a halfpenny more for lamb, exclusive of landing and market charges at Home of threefarthings per pound, whereas the total charge before the war was

farthing more on lamb. Mr. Cooper contended that if farmers were forced to sell their meat, at prewar prices, a good deal of it would not be worth taking off the farms, except for hides. On this point, Mr. David Jones, M.P., recently stated at Christchurch that it was considered by his party difficult to see how the idea that a drop in the price of New Zealand meat was bound to take place had arisen, as on the evidence adduced there would be no over supply of meat in England this year, and meat going Home would probably be consumed as fast as it arrived, so that where a producer’s finances were good enough, it would be a pity to sacrifice stock. The outlook, so far as supply and demand on the Home market is concerned, in spite of unemployment and the economic situation there, is by no means hopeless. The people must be fed, and from no source can they obtain the meat food they require, at so reasonable a price, as from New Zealand. Statistically, the Home market should readily absorb all the Dominion meat, and but for the bungling that apparently has taken place, and also perhaps for the failure of the Continent to find credits for the surplus meat ’ bought by Messrs. Vestey Brothers from the Home Government, and the consequent dumping of this meat on the English market, it. would continue to have done so. It will take a little time for the market to right itself, and conditions to be readjusted, when the prices for colonial producers will again be payable. The producers are the backbone of the Dominion, and have to bear a large proportion of the heavy taxation and local rates levied, besides having, in common with the rest of the community, to meet the largely increased cost of all requisites. It ean readily be conceived, therefore, that the large increase in freights, railage and freezing charges seriously affects their financial position, especially when prices are so greatly reduced. The chief grievance at the present time is that of freights. It may be quite true that the shipping combines hold the producers in the hollow of their hands, but it is only fair to bear in mind that, whereas insulated steamers were formerly able to do two and a half journeys annually to Britain and back, are now only able to do one and a quarter, owing to the great, delay in unloading and loading in the Dominion, it being stated that the time taken to unload ships here at the present time was recognised as the worst in the world. As a consequence thirteen vessels, with probably a million’s worth of meat on board—against which the producers could have drawn were unable to leave, and it is not reasonable to expect the shipping companies to bear the heavy losses due to tins unwarrantable detention. While Mr. Massey has succeeded in obtaining freight reductions on most lines of produce, no concession has been made on frozen meat. It is not surprising, therefore, that at. the meeting at Masterton last week it was resolved to ask the Government to provide legislation for establishing a board of mercantile marine with the object of acquiring and controlling a national fleet of vessels on a partnership basis between the producers and the Government. The case for the purchase of ships rests upon whether local control can ensure such lower working costs as will enable the ships to charge freights appreciably below those charged by the present proprietary companies, and whether the present is the right time to embark upon an exterprise entailing the expenditure of a considerable sum of money. One thing is cer/ tain: producers cannot pay present freights for meat. This fact should be apparent to the shipping companies as it is to piodueers. What the price of meat will be when the market stabilises itself is, of course, impossible to predict, but. in order to ensure supplies from the few countries able to export it must be a payable one. There is every reason to expect an early recovery of the market. But freights must come down so far as 1 New Zealand is concerned. If they don’t, then the producers will have no option but to join the Government in the establishment of their own service, as the Commonwealth has successfully done.