PRICES FOR EXPORTS

Press, Volume LXXXVI, Issue 26123, 27 May 1950, Page 5

PRICES FOR EXPORTS

Downward Trend Predicted

MR W. W. MULHOLLAND’S VIEWS

A forecast that prices for New Zealand’s *meat exports to the United Kingdom could be expected to take a downward trend in the fairly near future was made by Mr W. W. Mulholland, a member of the New Zealand Meat Board, in an address to members of the meat and wool section of the Federated Farmers (Auckland Province) at the annual conference this week. It was probable that most prices would be maintained during the coming season, Mr Mulholland added.

“Important negotiations are going on which concern New Zealand, Australia, Argentine, and some other countries, and it is a fair guess that the United Kingdom will refuse increases of any size in the prices for these countries’ exports,” he continued. The Dominion’s primary production was going to increase rapidly, and the time would come when the United Kingdom could not absorb all the country’s exports. It was therefore essential to look for other markets. In the meantime attempts to open up markets in the East would be wasted effort, said Mr Mulholland. Hong Kong would probably provide the best opportunity, but the situation there was very uncertain. He was in favour of exploiting that market when conditions had settled.

American importers had been pressing for New Zealand lamb, but the Meat Board would definitely not allow them any. “If we are going to open any market in the United States it will be done not through some private importers, but with the co-operation of the meat producers there,” Mr Mulholland declared.

“Our agreements with Britain are tremendously important, and we must hold on to them as hard and as long as we can. I have just been to Australia, and I know she can increase her production very rapidly.” New Zealand’s really serious competition was likely to come from South America, especially Argentina, which was at present exporting only a small part of her, products to the United Kingdom, because she had highly profitable markets in South and Central America.

Mr Mulholland emphasised that the financial position of New Zealand demanded that production be increased. The conference decided to urge that the Meat Board be allowed freedom of action in the sale of some proportion of New Zealand’s meat in an endeavour to establish other markets.