N.Z. EXPORTS OF MEAT

Press, Volume LXXXVII, Issue 26512, 29 August 1951, Page 8

N.Z. EXPORTS OF MEAT

“Outlobk Bright Up To 1955”

MR G. H. GRIGG’S SURVEY

(New Zealand Press Association) WELLINGTON, August 28. The outlook for the meat industry up to 1953 was undoubtedly bright, said the chairman of the New Zealand Meat Producers' Board (Mr G. H. Grigg) at the twenty-ninth annual meeting of the board to-day. “In the first place," he said, “we have the long-term contract which ensures the disposal of all our exportable surplus of meat up to September 30, 1955, at reasonable prices, if somewhat below market values as judged by Argentine standards. Second, we have our reserve funds of about £36,000,000 which I personally doubt will be called upon during these four years, as the trend of meat values appears to be upward. "The main danger during this period will come from rising costs of production,” he added. “Inflationary reactions are rampant throughout the world, and it is to be hoped that our Government will deal firmly with this aspect of our domestic economy. Low costs of production have been a feature of our primary production economy, and it is to be hoped that, comparatively speaking, this feature can and will be preserved. “These four years will also be used to explore the potentialities of markets other than the United, Kingdom. It is to be hoped that when the present bulk-purchase contract ends we will have established permanent markets for our meat products at least in North America, if not elsewhere.

“From 1955 onward the first essential to consider is the potential world demand and the production of meat. The present situation indicates a shortage of meat rattier than a surplus,, and I for one cannot see world meat production quickly catching up with the population growth and demand, if prices are not inflated to the point, where consumer reaction develops. In fact, it would not surprise me to find Australia deficient in meat production by 1960 if her Immigration policy is carried to its logical conclusion.

Ainu for Industry Mr Grigg said he would not attempt to predict the trend of prices after 1955, but he considered that New Zealand should aim, first, to keep costs of production down, to increase production and, to sell at a reasonable figure consistent with over-all national requirements. “This, I feel, is preferable to selling at the fantastic prices that may eventually repel the consumer,” he said. “Fantartic prices can be the forerunner of equally fantastic recessions, and it is in such a situation that I see the danger of a rapid depletion of our reserve funds with little or no reduction in our costs of production. “In 1953 the meat Industry has to make an important decision—whether to endeavour to negotiate an extension of the bulk purchase and sale beyond 1955 or whether to revert to normal trading. .“That will be a major decision that can only be made having regard to all the Important factors of the moment, not the least of which will be the political situation in New Zealand and the United Kingdom. “Irrespective of the decision, however, I have every confidence in the future and feel that good markets for all our quality production will be available for many years to come.” Elsewhere in his report Mr Grigg said that, taken as a whole, the 195051 season was not as favourable as the two previous years. Figures of the killings for the season were not yet available, but the latest showed that export meat production was down by 57.428 tons on the corresponding figures for last year. The decreases were: lambs, 18,456 tons; wethers. 8287 tons; ewes, 9814 tons: quarter beef, 14,395 tons; other beef, 402 tdns (increase); pig meat, 3039 tons; surdries, 3839 tons. “I am confident' that we will eventually export n total of 400.000 tons of i meat, but to do so we win need a i marked increase in the production of beef and pig meat,” said Mr Grigg. “After making due allowance for the increased demands of the local market. I can only reiterate the disappointment of my board at the poor

and Mies J. Clancy (Christchurch) 3. Juvenile Giris’ Solo Championship.— Jennifer Rees (Napier) 1, Glenls Galloway (Auckland) 2, Janice Logan (Whangarel) Juvenile Boys* Solo Championship.— John Benfell (Whangarei) 1. Junior Boys’ 880 yd Speed Event.—F. Wydur (Auckland) 1, B. Johnson (Christchurch) 2, T. Flynn (Auckland) 3. Time, 2min.

results from these classes of stock over the last few seasons. Every effort has been made to increase the returns to beef and pig producers, but with very little practical results.

Price Negotiations “Negotiations for next season’s bulk-purchase contract prices have been postponed until next month. Having regard tc the increases recently granted to the Argentine and to the dairy industry, I have little doubt that we will obtain our maximum over-all rise of 7i oer cent, on present prices," said Mr Grigg. He added that the tallow contract with the United Kingdom Ministry of Food would also be discussed at the September talks. “The opinion of the trade at home is that New Zealand should adhere to its present system of grading, and that the demand for the heavyweight carcase should not be heeded," he said. “Until the board has the opportunity of testing consumer preference in the United Kingdom it does not gropose to alter its system of grading ■am that which has proved so successful in the past and which still has the unqualified approval of the trade.” The possibility of a resumption of the shipment of chilled beef would undoubtedly be discussed at the contract talks, but to those who were of the ooiniou that New Zealand' could immediately resume the shioment of chilled beef he would say that difficulties would arise.

“In my opinion research should be carried out into ways and means of improving the presentation of the frozen article before deciding upon the course to be adopted,” said Mr Grigg. Surveying the meat industry reserve accounts, Mr Grigg said that at the end of the season the total funds standing to the credit of the industry should be more than £86,000,000, of which £84,000,000 was invested in New Zealand Government Stock or Treasury Bills. The freight concession on agricultural lime would continue for a further year, the cost to the industry being estimated to be about £200.000. Unfortunately a majority decision of producers’ organisations, coupled with a complete lack of co-operation on the part of the fertiliser manufacturers. had ruled out the possibility of a subsidy on imported phosphatic fertilisers bjlng applied for the ensuing year.