Freight Rise “Crippling Blow To Meat Trade”

Press, Volume XCVIII, Issue 28897, 18 May 1959, Page 10

Freight Rise “Crippling Blow To Meat Trade”

(New Zealand Press Association) DUNEDIN, May 17. Prominent figures in New Zealand’s meat industry believe that a crippling blow has been struck at the expanding trade with North American markets. “The rise in shipping costs could mean a loss, instead of a profit,” Mr J. E. Downes Roberts, of Middlemarch, said tonight. “New Zealand is at the stage where everything possible must be done to promote this market,” said Mr Roberts, who, as well as being a member of the New Zealand Meat Producers’ Board, is chairman of the Primary Producers’ Co-operative Society of Otago.

The rise in freight rates to West Coast, North American ports for beef and lamb had come at the worst possible time, he said.

Under difficult conditions, New Zealand meat exporters were gradually building up this market. The potential was still tremendous and the Dominion’s success in this part of the world could mean corresponding higher prices in the United Kingdom. “There are at least 2 million more lambs coming forward this year; but although there is a rise in the number of lambs, there is not a similar rise in tonnage because of underweight carcases,’’ Mr Roberts said. “It shows the increase within the country and we have got to do everything possible to create an outside demand.” Loss Possible

Mr Roberts said one prominent frozen meat exporting firm had shipped more than 60 per cent, of the exports to the United States market. He was certain the rise in shipping rates could mean all the difference between profit and loss to that company. A past world president of the International Federation of Agricultural Producers, Mr John Andrew, said from his home in Hyde that the news had come as “a bombshell.”

Last year, New Zealand’s overall economic position had been reviewed and a decision made against increasing the rates. Mr Andrew said he had understood this was applying this year. “On normal accounting procedure, a rise might have been justified, but this has been a major surprise,” he said.