HIGHER MEAT PRICES.

Taranaki Daily News, 20 March 1922, Page 7

HIGHER MEAT PRICES.

MYSTERIES OF THE MARKET. WHY VALUES HAVE RISEN. FUTURE PROSPECTS GOOD. London, Jan. 26. Ewe mutton, which was selling before the New Year at 3fd per lb, can now be sold at C-Jd; wether mutton, previously disposed of at Ikl, easily fetches 7%d; low grade lamb, which commanded no more than 6%d per lb, can now be sold at lOd, and such new season’s lamb as .is available is making Is per lb. These changes only go to show how mysterious are the movements of what is called the London market. A few weeks ago meat marketmen were a dismal fraternity, who spent unprofitable days at Smithfield. A few hundred carcases at a disappointing price was all they could expect to sell on the most favorable day. Smithfield buyers were satisfying their needs for three days ahead at most. There were so many sellers that the wily Smithfield buyers quoted one marketman against the other, and so dragged the prices down to the unsatisfactory level which for so long has discouraged, the producers ift New Zealand. To-day, those marketmen who have mutton and lamb to sell sit at their telephones with smiling faces and hardened hearts, dispensing their favors practically on their own terms to those who clamor for their wares. HEAVY SELLING OPERATIONS. No one could tell from week to week what was going to happen. As it was with blitter, so it is with mutton and lamb, but the rise in the market price of meat springs from a totally different cause from that in the case of butter. In view of the proposed New Zealand Government scheme for exercising some control upon the disposal of the Dominion meat, the reasons for the present improved situation are of considerable interest. During the latter portion of last year, there were a great many agents hawking consignments of meat, who had no interest in the sale further than receiving their commission. Then there were other less important companies who had bought small quantities and could not afford to hold on a falling market. As soon as they got their meat they sold it. Both these types always! had a depressing effect upon the market. Somewhere about Christmas time these smaller merchants and agents had got rid of all they held, and to-day they are all off the market. There is still a good supply of mutton available, but practically all of it, as well as the lamb, is in the possession of four or five firms, one at least of which is generally known to be a member of a socalled trust. It is probable that two of the firms are the owners of multiple shops, whose numbers run into thousands, and in view of the' fact that the new season’s meat is not due in large quantities for another six weeks, they have put a check on their selling operations so that their own retail shops shall not have to suffer a shortage. INFLUENCE OF LARGE FIRMS. Tt is just possible that these four or five firms have conferred together, but even if they have not, the result has been the same. For the time being they hold a monopoly, and consequently prices have risen to their present level. It is a peculiar example of the effect the large firms can have on the market when they are not harassed by weak holders or firms doing business op consignment.

The monopoly will not last for very long, of course, but seeing that the new season’s mutton and lamb are in short supply, those in. a position to know consider ’ that good prices will continue right up to the end of June. The Argentine produce, which is due in larger quantities in March and April, might have a slightly depreciating effect, but seeing that American firms have had a very bad year they will probably be glad of an opportunity of raising their prices, and they will act in sympathy with the Australasian market. . In regard to the meat pool scheme, I understand that Mr. Massey cabled to the High Commissioner asking him to ascertain, in the event of its coming into operation, whether the existing agents and firms operating here would agree to help in the distribution. Although all the firms have again protested against anything in the form of control, they have jointly signed a document stating their willingness to cooperate in any arrangement that may be decided upon.