rn 
20 
so that working expenses are spread over a maximum turn- 
over, It is obvious, for example, that though a profit of 
1d. per 1b. may be made on one transaction, subsequent events 
may load it with such a heavy proportion of the working expenses 
of the season as a whole as to turn it into a heavy loss. 
(ii) The South American Trade.—The organisation of the 
South American trade differs from that of the Dominions in that 
it is linked with a complete distributive system in this country. 
Few of the companies engaged in the meat business in Australia 
or New Zealand have any market stalls or dep6ts here; whilst, 
on the other hand, it is the exceptional South American company 
which is not in that position. As a result, the South American 
companies are able to sell directly to the retailer and are therefore, 
to a considerable measure, independent of any intervening 
middleman agency. 
Buying in South America is done on lines similar to those 
followed in Australia and New Zealand. Each works has its 
buyers who visit sales-yards and farms, but there is the 
important difference that, in South America, practically all the 
works are kept supplied with cattle and sheep whatever the 
orice; in the Dominions, some works may not be opened at all, 
or may be closed before the season is over if the price demanded 
for stock does not show a satisfactory margin when compared 
with the prices being realised for meat in Great Britain. This 
uncertainty of output is not present in the South American 
business, and, if it were, it would be exceedingly difficult to 
keep up the distributive organisation here, for if, for a few weeks 
of the year, the stalls and depots in this country had no supplies, 
the overhead selling costs would be prohibitive. At various 
times, Australian and New Zealand interests have expressed a 
desire to develop the ownership of stalls, depots and shops in 
this country, but it would appear that the problem of continuity 
of supplies will first have to be solved in their case before they 
can economically embark on this policy on a scale comparable 
with that of the South American companies. 
The South American meat trader knows approximately the 
absorbing power of his various branches in this country and the 
class of goods which each can take, so that, subject to the 
limitations which are noted below, he can instruct his works 
regarding the quantities they should ship each week. He has, 
as it were, a guaranteed outlet. Moreover, as the works are 
operating over the whole year, there is a clock-work regularity 
which is absent in the Dominion trade. In addition, there is 
agreement among the companies as to shipping space for chilled 
beef, and a conference of importing companies sits in London,* 
week by week, to allocate the freight from South America among 
the various companies represented. This is arranged on an 
* This conference breaks down from time to time as, for example. 
in 1911. 1913 and at the present time (August. 1925).