CALL FOR ACTION ON MARKETING

Press, Volume XCVII, Issue 28541, 21 March 1958, Page 12

CALL FOR ACTION ON MARKETING

Mr J. D. Ormond Wants Top-Level Talks (N.Z. Press Association—Copyright) WELLINGTON, March 20. The policies of the British Government on food importing should be the subject of top-level talks at the earliest opportunity, said Air J. D. Ormond, chairman of the Meat Board, today in an address to the ; electoral- committee of the board. He said that, in J spite of the vigorous development of other markets, the United Kingdom remained the major market for New Zealand’s meat and dairy produce.

Mr Ormond said action by British, New Zealand and Australian food producers to protect their interests in the British market was urgent

“These are difficult times tor New Zealand primary produce in the United Kingdom market and we must have firm policies to meet them,” said Mr Ormond “In meat marketing we hold a very strong position because our product commands a substantial premium over all other imported meats.

“We could not expect to escape entirely the effect of the general decline in food prices, but I believe that agreements we must reach before very long with the United Kingdom should strengthen our future in the British market and give assurance of stability.

‘‘The talks which begin next month will give the New Zealand Government the opportunity to state its case firmly for a strengthening of Commonwealth trade.

‘Despite everything spoken to the contrary, I believe commonwealth preference must again be made to mean something for the

Commonwealth in the United Kingdom market as it does for Britain in the Dominion markets. “A year ago we told the United Kingdom Government we considered the meat market was already over supplied and was going to become still more so because of the increasing home production and the inrush of beet from the Argentine. We wanted to know where we stood, and whether - Commonwealth preference still meant anything to the British government. We wanted to know: ‘ls it to be us or the foreigner’ . . . We pointed out that for a quarter of a century we have been giving Britain preferential treatment in our own market in New Zealand but getting in recent years very little real preference in return. “The British Government’s exports in theory told us they did not believe there was, or was going to be, over-supply. But in 1957, production in Britain increased to a new record level and Argentine beef exports to Britain increased to a new post-war peak.

“I believe the policies of the United Kingdom Government should be the subject of new

top-level discussions at the earliest opportunity. Britain's Prime Minister (Mr Macmillan) knows our country now. He knows our loyalty in trading policies to the United Kingdom and the preference We give Britain in our market hkr “While he was in New Zealand Mr Macmillan said: ‘No country or people should get rich by the poverty of others.’ But if present policies continue then the agricultufal producing nations of the Commonwealth will certainly suffer. We cannot think the people of Britain would want that to happen. “New Zealand has already had to cut back her imports from Britain. Other and larger nations will in turn be forced to do likewise, and the British Government will learn that a cheap food policy carried too far is dearly paid for. “To expand our market in the United Kingdom we have adapted our breeding practice, our grading, marketing and promotion to meet the requirements of the market

“Providing we fight for our rights in the United Kingdom market, vigorously develop other markets at our disposal, and buy as well as sell in those markets, there is no cause for undue concern. We cannot escape a general downward trend. .in food prices, but we can demand, earn and get our due share of the available market

“It would be folly to cut back our production. The board and exporters have concentrated much energy and thought upon the development of new markets in the knowledge that we must have every available outlet for the increasing weight of produce we have to sell if we are going to support a third and a fourth million of* population in New Zealand. Since 1954, our sales to markets outside the United Kingdom have risen from 51,884 tons to 74,405 tons in 1956-57. “These new markets are interested chiefly in our beef, both for processing and in carcase form. I believe there will be great opportunities in Canada and the United States, and not only in beef. “We must build our cattle stocks and have beef to sell to all markets and in all forms. “Last season when Japanese importers first came into the trade there was some confusion over the types and volume of meat required. This year imports are likely to be on a more orderly basis with fewer speculators involved.

“A major need is the expansion and development of markets for lamb and mutton. We are intensifying our sales campaigns in the provinces in Britain, and we are making encouraging progress in several quarters outside the United Kingdom.

“Packaged meat is gradually finding an established place in out trade. I think it is going to take a much larger place in the years ahead,” said Mr Ormond.