MEAT POOL PROPOSALS.

Taranaki Daily News, 9 January 1922, Page 8

MEAT POOL PROPOSALS.

s AND THE ATTITUDE OF HOME TRADE. The pooling propositions as disclosed up to the present time seemingly give no consideration to the great difficulties that are certain to arise in London and the other Home markets. The selling end of the meat trade will always be dominant, as prices depend on the supply and demand. It is necessary to remember that the British meat trade was only recently relieved of Government control, and a renewal will be most unwelcome. The British meat trade can only consider the pool proposals as a form of Government control notwithstanding statements made here to the contrary. We will then commence our pooling operations with a hostile, trade at Home, whose previous experiences under years of control make them distrust Government interference with their trade matters, unwilling to assist, 'but probably awaiting an opportunity to profit by the control’s difficulties, which' will surely arise.

The larger firms, distributors and retailers, are accustomed to purchasing a part of their requirements ahead, buying to some extent c.i.f.; this buying ahead gave many advantages to' sellers in New Zealand, as it helped towards steady markets and prevented supplies accumulating in owners’ hands. This buying c.i.f. will now be discontinued, the meat business previously carried on between willing buyers and willing sellers brought to an end, all buyers wil] hold off New Zealand meat, not knowing what policy (if it has one) the Board of Control will pursue. Buyers will not. indeed, they could not. risk buying ahead under such conditions, and tliis fact will be obyious to anyone conversant with the frozen meat trade as conducted at Home. The present competitive selling will be discontinued, the organised old-standing British firms, whose salesmen attend l on buyers throughout. Great Britain, is to be substituted with an office housing a Control Board, who will expect buyers to come to them for supplies, otherwise an enormous staff with several provincial offices and all the necessary expenses will be required to do the selling of meat. This will present to the American firm’s salesmen an opportunity they will quickly seize and profit greatly from. As there will be no forward or c.i.f. buying, again be assured it will cease, shipments will have to be landed and stored on arrival at Home ports, all the heavy expenses for cold storage will be incurred, and the producer will have to pay the cost eventually. The meat trade, buying only their immediate requirements as arrivals from New Zealand increase, supplies in the possession of the Control Board will begin to accuffiulate; or, if the supplies are held back in New Zealand in the supposed regulating of shipments the position will be even worse. The opportunity of realising on any advance will be lost, as the supplies will not be on hand to sell to buyers who want the meat at once—not two months hence—and others will not be slow to reap the benefit.

Do not. overlook that the American firms can put South American lambs on the London market in about four weeks, or in less time under favorable circumstances, whereas it takes New Zealand eight to ten weeks to get its meat on the Home markets. The. regulating of shipments or supplies will inevitably mean accumulation, and it is quite possible we will again see one season’s meat partly on hand in disturbing quantities on the opening of the next season, and there will be some bad prices realised if this should happen. This inevitable accumulation of NewZealand meat at one end or the other will weaken the market, buyers not committing themselves to any but small purchases, storage charges' mounting up at tZe rate of a farthing a month; depreciation in condition with its consequent loss in the selling price realised, loss in weight, which is always involved in the holding of meat in cold stores, interest on the money invested in the stock, in all not less than M (one halfpenny) per pound expenses and loss per month to be paid by the producer is a bill to give him food for serious thinking. Perhaps it is fortunate that the New Zealand producer will be unaware of the conditions that will prevail with the New Zealand meat, under the control of one office and no competitive selling to allow of any comparisons. Our producers will have to accept the version provided for them by the “powers that be,’ and will never know the other side of the story. (Published by Arrangement.)