‘Meat Export Prospects Not As Bad As Forecast”

Press, Volume XCVII, Issue 28604, 5 June 1958, Page 7

‘Meat Export Prospects Not As Bad As Forecast”

(New Zealana Press Association)

WELLINGTON, June 4. The estimated drop in meat export receipts for this year may not De as bad as the Minister of Finance (Mr Nordmeyer) forecast in his economic review ol last night, says the “Dominion.” Mr Nordmeyer said he anticipated that returns from meat exports this year would be £ 8.9 m less than- during 1957. This estimate is already £l.lm better than anticipated earlier this year. Some sources in the meat industry believe that the situation will improve as trading continues this year. Figures released this week by the Meat Board show receipts from the export of meat in the first four months of this year totalled £28,599.000, an increase of £170,000 over the total received in the same four months of 1957.

But these receipts do not, so far, reflect reduced values of lamb in Britain. These reduced values may be expected to become apparent in bank figures later this year. There is a good chance, however, that the lower prices for lamb may be offset by two factors: considerably increased lamo production and improved prices for beef exports. Beef in Demand

Beef makes up about one-third of New Zealand's meat exports—lamb accounts for about 60 per cent. —and the indications are that so strong is the demand for New Zealand beef overseas that this country will not have sufficient this year to meet all requirements. Another encouraging factor is

the rise in the price of lamb recently on the British market, due in part to the Smithfield market and London dock strikes There is a good supply of New Zealand lamb in store, and these stocks are being drawn upon as supplies to the consumers become reduced. But, at the same time, lamb is being held up in ships awaiting discharge in Britain. The pattern of meat trading this year has been unusual. It looked at first as though both production and export receipts would be down. Production is still below that of last year, but there is slightly more meat for export than had originally been estimated.

Argentine Competition ' The improvement in the export market for beef is the result of a continuing strong demand from various markets, but particularly those outside our traditional market of Britain. The New Zealand industry is still worried about the continuing high shipments to Britain from the Argentine, but at the same time is reaping benefits from alternative markets. Countries like Japan and the United States are keen to buy New Zealand or Australian beef because it is known to be diseasefree, while that from Argentina is not. Australian output this year, however, is well down, and consumption is rising. So New Zealand is reaping the benefits. The New Zealand industry is also adapting itself to the prepackaged beef trade which is growing the over, particularly in the United States.