MEAT CONTRACT WITH BRITAIN

Press, Volume XC, Issue 27307, 25 March 1954, Page 10

MEAT CONTRACT WITH BRITAIN

Termination By N.Z. Expected

TALKS TODAY AT WELLINGTON (From Our Own Reporter) WELLINGTON, March 24. A decision to cancel the bulk-pur-chase meat contract with Britain this year is expected to be made at a meeting to be held tomorrow morning between the Minister of Agriculture (Mr K. J. Holyoake) and representatives of the New Zealand Meat Producers’ Board and the meat and wool section of Federated Farmers. Another decision likely to be made at the meeting is acceptance of an offer -toy Britain, if the contract is cancelled, of floor prices for the 1954-1955 season, although this will not be continued in future .seasons.

No comment on the possible outcome of tomorrow’s talks was avail? able today from either the Minister or from the chairman of the Meat Board (Mr J. D. Ormond). Under the present agreement New Zealand has the option of cancelling the bulk-purchase contract this year, or allowing it to run its full term until 1955. No announcement is likely to be made after tomorrow’s meeting, as a further conference will be held with the Minister on April 7. At this second meeting additional producer representatives and also delegates from meat exporters are likely to be present.

A New Zealand delegation visited Britain in January to discuss the bulkpurchase meat agreement with the British Ministry of Food. After preliminary talks some of the members of the delegation returned to New Zealand at the end of last week. Mr Ormond, who was a member of the delegation, will report to the Minister tomorrow on the progress of the London talks.

An early decision must be made to enable New Zealand to resume private marketing of its meat in the United Kingdom. An Australian delegation was also in London during- January, and it has been announced that Australia will this year terminate its bulkpurchase meat agreement with Britain.

It is believed that the British Ministry of Food has taken an impartial attitude on the question of whether New Zealand terminates its contract this year or allows it to run its full term until 1955. Nevertheless, the Ministry of Food is concerned with the disposal of about 350,000 tons of New Zealand meat if New Zealand decides to retain its bulk-purchase agreement until 1955.

Many factors are likely to influence a decision to terminate the contract. Chief among these is the fact that if New Zealand decided to retain the agreement until 1955 it would be the only meat-exporting country in the British market which would not have the advantages of private selling. It is feared that if Argentina and Australia were to be given one year’s start on New Zealand in private marketing of a their meat, British housewives might well become accustomed to ordering Argentine or Australian meat, to the detriment of the New Zealand product, which would still be handled in bulk by the British Ministry ofi Food.