FROZEN PRODUCE LETTER.

Taranaki Daily News, 29 December 1921, Page 7

FROZEN PRODUCE LETTER.

REGIME OF CHEAPNESS AHEAD. London, Nov. 4. By the time lines are in print New* Zealand, meat producers may have witnessed in the Home cable advices some amelioration of the frozen meanprices situation. That upward tendency.. if only a slight one, should come early in December, when the last of the autumn rushes of Scotch mutton and Jamb, and also mutton from Holland and Denmark, have ceased to give Smithfield and our other markets that extra depression which spells calamity this year. This disastrous position, however,, has not needed that added weight, as the stocks in this country at the present time are sufficient to glut the most active market. SUPERABUNDANT SUPPLIES. . It is estimated that the cold stores' of the United Kingdom are filled with well over 100,000 tons of frozen meat at the present time, in addition to which there is about half that quantity, either afloat or in port hern discharging In the usual way, London’s ordinary consumption of frozen meat is roughly estimated at two shiploads, or, say, 8000 tons a week, so that the effect of the heavy stocks incubus may be estimated. Official import rates show that during the first nine months of this year frozen meat arrivals exceeded those of last year by 125,000 tons, or just the amount of meat; which is lying at hand, an unwelcome barrier from the market point of view. PRODUCERS’ PROSPECTS. What the New Zealand producer is apparently watching so anxiously at the present moment is his prospects for the future, and it has to be borne in mind that no trade can go on indefinitely at a loss. Hence, the meat-grower is asking what chance there is of prices showing a margin on production costs. -It must bo answered at once that present prices, namely. New Zealand lamb at 83d for light weights, and mutton at 5d for medium weights, cannot be said even yet to represent rock-bottom. If audh prices go much lower they will cross the pre-war level, but meat is not likely, of course, to be cheaper than then, although at present conditions of ruling poverty, heavy stocks and disorganised consumption may bring rates for the time being practically to parity with 1914. This is a poor prospect for the producer, who cannot yet receive much relief, pending a general lowering in freights., which seems long delayed, and a reduction in other costs. Regarding the former question, I have heard that some arrangement is contemplated whereby a rebate will be allowed on beef shipments from Australasia if market prices fetched here do not exceed a certain level, but that arrangement does not sound very satisfactory and probably will resolve itself into a regular freight reduction. Moreover, I hear there is some possibility of the arrangement being reckoned retrospectively to a certain extent. With the present rate at practically 24, the need for this is very great. ' but shipowners have, of course, to defray the cost of an empty voyage outwards. That, it is hoped, may soon improve and it would relieve the position immensely. The Argentine freight is now Id. MEAT IMPORTERS' LOSSES, The present state of affairs in the frozen meat market is accountable for very big losses to seliets. Those who have bought on a speculative basis have been making strenuous losses during the last two months, but these can be balanced against big gains early in the year. Holders of recent arrivals of New Zealand lamb have, on recent sales, in some cases, been losing as much as 17/to £1 per ease. The trade here has made a strenuous effort to stop the slide in lamb values, but with little success, an effort to stand at 6/- and 5/8 per stone for 2’s and B’s being made in vain. In the beef market the chief losers must have been the Vestey Brothers, with their huge holding of Government frozen beef, which has been extremely difficult to move. This gigantic purchase amounted to some six million sterling, and market conversation puts the holders’ losses at between 15 and 20 per cent. It is certainly a matter for congratulation that the Government stocks have now been got out of the way, for although some of that meat still appears orf the market it is now out of Government possession. CHILLED BEEF. ■Chilled beef during the past two or three months has witnessed almost as meteoric a fall in value as New Zealand lamb, for whereas in August the Smithfield value of best Argentine chilled hinds was 1/- per lb. now, early Jn November, it has fallen to below /d. having been a fraction lower than even that in the last week or two. Nevertheless huge chilled consignments are being poured into this country, shipments from Argentina having exceeded the frozen beef exports from that quarter by 75 per cent. Apparently, the Americans and the British who share in this Argentine export trade are once more at war with each other, and with the more powerful financial backing that the American Trust has, it would be bad for the British companies if the British Government were to release its control of the Las Palmas works, which apparently stands as a barrier in front of full domination of the Americans.