AMERICAN FARM SURPLUSES

Press, Volume XCIII, Issue 27988, 7 June 1956, Page 12

AMERICAN FARM SURPLUSES

U.S. Official Deplores N.Z. Attitude

“MORE REALISTIC View ’ urged

(New Zealand Press Association)

WELLINGTON, June 6. An appeal for New Zealand marketing groups to take a “more realistic view toward America’s so-called sur-■ pluses ’ was made by the Agricultural Attache of the United States Embassy , •Mr Eugene T. Ransom), according to a supplied report of an address he gave to farmers at Masterton this; afternoon. New Zealand should help the United States to make the best use of the surpluses to feed the world’s hungry, said Mr Ransom. The very existence of the surpluses could be used to create a new demand for agricultural products that New Zealand could fill after United States surpluses were gone; “I should like to see some intensive marketing research and a high degree of co-ordination between farm and commodity groups and the trade in New Zealand and in my country, so that your iamb and beef might be better placed in the proper markets," said Mr Ransom. <. .

It wfos hoped that about 12 per cent*' cf arable land would be taken out of production in the United States in 1957, and this should reduce output by a similar proportion, said Mr Ransom. On the livestock products which were of more concern to New Zealanders, Ameiicans felt they Were over the “hump.” Beef cattle numbers had reached a peak, and a reduction was now expected. Sheep numbers had decreased, by one-third'in the last 10 years. Dairy cattle numbers were also down, but output was still increasing. “To counter this increase our consumption of fluid milk increases by two billion pounds each year and our butter consumption has increased, dramatically in the last year," said Mr Ransom.

Possibly' no more drastic action had ever been ’taken on a commodity bv any country when in 1953 the United States reduced the dairy price support from 90 per cent, to 75 per cent. Government stocks of butter, cheese, and dried milk were now manageable, and quite small in relation to United States commitments and production. Submitting that New Zealand and the United' States had a verv good trade relationship. Mr Ransom said the United States prized the New Zealand tobacco market, there was a mutually good trade in seeds, and New Zealand meat and wool had an unrestricted market in the United States, which also still allowed some butter and cheese to enter, in spite of its surpluses of dairy products.