Effect of British Control — The general tendency of the facts just noted is to 

 hold the price of frozen beef at a level approximating that which obtained during times 

 of peace. As will be understood, this level parallels, fairly accurately, the price at 

 which beef can be supplied by the Argentine, Australia and New Zealand, where the 

 costs of production, both on the farm and in the packing houses, are considerably lower 

 than in Canada. Notwithstanding, therefore, all the good will that Great Britain may 

 have toward this country, Canada will remain somewhat at a disadvantage in the way of 

 securing contracts and in her ability to sell her beef in Europe during the period over 

 which the Imperial Government is able to exercise its effective control of the market. 



Independent Activities — Despite the obvious advantages, however, inherent in 

 this control, it is apparent that certain factors are contributing to weaken somewhat 

 the position of the British War Office in this regard. In the first place, it is 

 being questioned whether Great Britain will be able to continue her practical 

 monopoly of the meat carrying trade, through which she has been able to 

 exercise her regulation of prices. It was pointed out that both France 

 and Italy are interesting themselves in the creation, for their own use, of a fleet 

 of transport ships and have given consideration to the independent purchase 

 of their meat supplies. The perfecting of any arrangements in these directions will 

 considerably weaken the powerful position Great Britain has hitherto held. In the 

 same degree, it will undoubtedly lead to a return to the natural equilibrium, as regards 

 price, which would ordinarily be reached under the untrammelled influence of normal 

 supply and demand. Whatever opinion one may hold respecting developments of this 

 nature, it is felt that attention should be drawn to them because of their bearing upon 

 the position of this country in securing sale for her meat. 



Future Demand — Another factor, operating in the same direction, is the increased 

 demand now being created for frozen beef. It has been demonstrated to France by her 

 use of this product for army purposes that it is a thoroughly wholesome article of food. 

 Unless, therefore, the agrarian interests in the country again regain control of the 

 situation, it is expected that France, for a period of years, will open her market to. 

 foreign supplies, if not generally, at least from the allied countries. This new European 

 market, together with the increased consumption of meat, which it is believed will 

 continue after the war, should probably serve to create a general rise in price for 

 beef supplied through the export trade. This price, as compared with prices formerly 

 existing, will continue at least until supply is able to cope with the demand. 



Future Supply — Prior to the war, the available sources from which beef could 

 be obtained were able only to furnish the quota required by the United Kingdom. No 

 appreciable surplus was apparent. Heavy purchases from the Argentine, resulting 

 from War Office orders, together with a severe drought in Australia, are resulting in the 

 shrinkage of the current output from these countries. So true is this fact that, not- 

 withstanding War Office control, current prices have risen considerably and to a figure 

 at which both United States and Canada have been able within limitations to compete 

 for business. It was learned, in fact, that, as a result of the conditions just referred to, 

 an additional rise in the price of the imported article might be expected to occur during 

 the current year. Furthermore, the pressure of army requirements has been such as to 

 necessitate several emergency purchases, the general tendency of which has been able to 

 appreciably lift the level of the market. From a general survey of the whole situation, 

 it may be concluded that Canada will be in a better position during the coming months to 

 obtain sale for her product than she has been able to secure during the past year. Having 

 reference to last year's trade it may be stated, on the best of authority, that average 

 prices current on Smithfield Market in 1915 show an increase of 40% since the outbreak of 

 war. 



Market in France — It should now be pointed out that the market for Canadian 

 beef or, at least, for the quality which is being produced, lies in France and in Italy rather 



86 



