The Daily News FRIDAY, JUNE 2, 1922. FROZEN BEEF MARKET.

Taranaki Daily News, 2 June 1922, Page 4

The Daily News FRIDAY, JUNE 2, 1922. FROZEN BEEF MARKET.

The remarks recently made by Mr. Elder to a representative of the Australian Press Association, concerning the frozen beef trade, although throwing no new light on the subject, emphasise in no uncertain manner that the danger attached to the Argentine tactics is far too real to be treated lightly. It would seem that the growers of beef in Australia and New Zealand will now have to face the inimical operations of the Beef Trust, which has practically obtained control of Argentine and other supplies, and is proceeding to develop those tactics which are designed to crush out all opposition. The vast amount of capital at the disposal of the Trust enables it to play fast and loose with, the London meat market. To those connected with the Trust the loss of a million or so is a. mere circumstance as compared with the profits they can make when the market is at their mercy; it is only a detail of the campaign. With the producers of the Dominions, however, every fraction of a penny less than what should be the market value of their meat means a serious loss which may mean ruin. The Argentine exporters are well aware that the cheaper the meat placed on the British market th.e more welcome it will be. To ask the Home Government for protection, in accord with the expressed desire to give preference for trade within the Empire, would be absolutely futile, because no British Government would be able to retain office if it acted in restraint of free trade where foodstuffs are concerned. During the war, it was, of course, imperative to take special action, and the people recognised that hardships must be en dured, but in view of present circumstances, especially in connection with lower wages and unemployment, it can readily be seen that abnormally low prices of beef would be such a great boon that no Government could be expected to protect the interests of the Dominion’s producers. Mr. Elder has evidently carefully considered the position, and has avoided all exaggeration in the sketch he has drawn of the operations of the Argentine exporters, /.part, from the formal question as to whether the Argentine interests are work- , ing together—of which there need be not the slightest doubt—it will be seen that, despite the fact that market prices for chilled beef arc, lower, shipments from the Argentine are being enormously increased. Why? The reason given by Mr. Elder leaves no room for any difference of opinion on the matter. He says: “Argentine producers, by dumping huge beef shipments into England, mean either to oust Australasian frozen beef from the British market, or to relegate it to a very low position. Not only has the Argentine advrntages over the Dominions in the matter of much shorter distance for transport and therefore lower freights, but the lesser passage enables chilled meat to be placed on the market instead of the frozen article. According to the latest cabled prices on the London market, Argentine chilled hindquarters realised twopence halfpenny more than New Zealand hindquarters, while there was a difference of three-farthings on the fores in favor of the Argentine (3fd as against 2fd), so that Ari gentine producers enjoy a double pull over those of the Dominions and can well afford to still further depress prices for Dominion beef. The point made by Mr. Elder is that even with the Government subsidy, reduced freights and lower wages, Australian beef 1 cannot meet a 'satisfactory market because of Argentine tactics. He also points to the inevitable trend of all Trust methods, that in the end the consumers have to pay

dearly when the markets are controlled by these methods. That the situation is serious is obvious. The remedy is hard to find. Even a palliative, by means of Government subsidies, is practically out of the question. In the one direction, of improving the qualify of beef when it reaches London,' by scientific investigation into the physiological changes caused by refrigeration, some help can be rendered, either at this end or the other, for it is undoubted that, apart altogether from Trust methods, the chilled beef from the Argentine is a'better article than the frozen beef from New Zealand. There must be some explanation of this. Investigation may be proceeding, but the Department of Agriculture is strangely silent in regard to it.