MORE MEAT

Press, Volume XCVI, Issue 28346, 3 August 1957, Page 9

MORE MEAT

Comprehensive Summary

Fears held earlier .that the Argentine might become an in- ! creasingly serious competitor to New Zealand on the British meat 'market are apparently not justified in the meantime jit least. The annual review of the sheep i industry published by the Meat ' and Wool Board’s Economic Service says that New Zealand's greatest competitor is not the 'Argentine, but the United Kingdom itself.

I Of the extra supplies of all meats available on the United Kingdom market in 1956 the service saysi that more came from home production than from imports. Shipments from the Argentine totalled 248,000 tons, about two thirds of the pre-war quantity, and in ..the first five months of the current period there had been no significant increase in supplies from this source. "It is very doubtful whether exports from the Argentine will rise much above their 1956 level, but United Kingdom production has soared by 80 per cent, since 1916-50 and is still rising,", says the review. "The dominant element in the supply situation is, therefore,not what is being done in Argentina but what is being done in the United Kingdom.

Argentine Efforts "There is no denying that the Argentines are making an effort to stimulate meat exports,, but even if there is a marked increase in Argentine meat production as a result of this new policy 'it is by. no means certain that 'meat exports will also increase significantly. The Argentine population has grown and is growing more rapidly than the cattle population, In spite of the abolition of subsidies and ceiling prices on beef, local consumption in the Argentine is at an alltifne record, both in the total and per head. '

"Other factors which, mitigate against any sustained increase in the volume of Argentine meat exports to the United Kingdom are increased populations in other .Latin American countries, the ! slaughter of capital beef stock ilast year, the limits of capacity at packing plants, the over-taxed | transport facilities of the country, shortage of refrigerated | ping, shortage of development | capital generally, and political uncertainties. For New Zealand, . this means that the prospect in the United Kingdom meat market continues to be attractive."

The review nevertheless points to the need for new markets. After referring to the recent trade discussions in the United Kingdom it says: "the position is thus clear that .we cannot rely upon Britain to absorb our expanding exports of meat and that we must take steps to bring our trade policies into line with hard facts. With population and incomes increasing in ” North America, Western Europe and Pacific countries there is scope for New Zealand to supply at least some of the increased demand for meat . ." Provided |hat regular shipping