MEAT MARKETS IN NORTH AMERICA

Press, Volume XCVIII, Issue 28983, 26 August 1959, Page 10

MEAT MARKETS IN NORTH AMERICA

New Zealand Exporters "Sitting On The Fence”

(Aew <.euian<J Press Association)

WELLINGTON, August 25.

Australian competition for the North American meat market had affected New Zealand’s opportunities, but he looked at the situation without pessimism, said the chairman of the Meat Board (Mr J. D. Ormond) in an address today to the annual meeting of the board’s electoral committee. Mr Ormond, discussing the importance to New Zealand of developing new markets, exhorted shippers and exporters to adopt a less cautious attitude.

The major New Zealand exporting firms, he said, were still “sitting on the fence” in the development of the North American market for mutton and lamb, and there was a danger of New Zealand falling behind in that market after leading the way.

‘•The great increase in meat supplies from Australia going on to world markets, with a season beginning three months ahead of ours, has undoubtedly affected our opportunities in countries where the importing capacity is not by any means unlimited. The weight of Australian exports, with accompanying price reductions, has been a major factor this year in the imported meat markets of the United States and Canada.” said Mr Ormond. “At the same time, it is clear that the build-up of cattle, hog. and sheep supplies m the United States will, in the next few years, see more meat available than has come to the market from domestic sources in North America for the last three seasons. Demand For Beef “These facts do not cause us to look pessimistically at the prospect. With beef, our total for export is comparatively light, and we have established a trade in a standardised product which continues to be very well received, and to have a place of its own on the market. “With mutton and lamb. I believe there is much work we have got to do to develop the market. For various reasons, the sheep industry in the United States and in Canada has languished for some years past, so that lamb and mutton have become comparatively little known meats. I be-

lieve the same thing would have happened to the United Kingdom sheep industry had we not for three-quarters of a century, kept sheep meats before the public, and for the last 30 or more years actively advertised and promoted them. "The American and Canadian producers recognise that their primary necessity is to be able to maintain supply to the consumer. ! There was a very considerable ' problem in promoting trade in a

! s product which such a large pro-! portion of the people and even a c considerable section of the trade i r found unfamiliar, but we have I ( some very encouraging develop-. j ments and we have plans for trade I f promotion which we intend to j push ahead. ; Geared to U.K. Trade "It is here that I want th-'j! committee to be aware of a problem which we have got to re-1 1 , solve in the interests of our in-1 dustry and of the country in the!, not too distant future. We have to | realise tha' our trade is in the I hands of very experienced people. I but it has been geared all these 1 years to the United Kingdom mar- ! ket. “A large portion of this trade is in the hands of United King-dom-based firms. We do not want to disturb our trade with the United Kingdom, but it is vital to develop and hold new outlets for our mutton and lamb and so reduce the weight of sheep meats going on to the market in Britain. “Some encouraging has already been made, but there! are some very real difficulties to be overcome. At the heart of the! problem is the fact that it requires considerable financial risk to promote the flow of the product. So far, for reasons which are not difficult to appreciate, | very few people have been pre-! pared to take such risks. “The trade is geared to the ! United Kingdom market and so long as a profitable return can be! won by these companies through■ their traditional trade channels, there may not be an incentive to, them to invest their energies, or I their finance, in the opening up of! new markets. “When the Japanese market! developed, both the shipping and] the meat exporting people were wary as to its future prospects. It was understandable that they were cautious, but. in my view, excessive caution delayed market! development. Cautious Attitude “Then, when the North Ameri- 1 can trade promised well, wej found the shipping people again! so cautious that, without the: board getting behind and giving a very large push as we did. wel might not have had adequate ship-! ping to the West Coast of North! America even yet. “We got an adequate shipping service going, thus providing the channels through which our product could (low. We proved that! Ihe market required our product: we insisted that it be presented' in the acceptable manner, and at| that stage we began to do big, business in beef. Market in Japan “But we find the major export-! ing linns are still sitting on the; fence in this business of de-! veloping the North American mar-' ket for mutton and lamb. This is' exactly what I found in Japan only a few weeks ago—a glaringl example of a market waiting to' be served. “The board felt it necessary to put its whole weight behind the, drive to get sales of mutton in Japan going—that is, to prime the' pump. This, I believe, we have done, but there is still not as broad an interest among the exporters in this market as I would like to see. “In North America there is a danger of our falling behind after having led the way. I believe the board may have to take some major practical step by way of ! specific new policies to ensure that these markets are adequately and soundly developed. We have this under consideration now." Mr Ormond said that the board had established a public relations plan in Canada to be promoted by a Canadian advertising and public relations agency. A consumer ! survey had been taken over a i wide area and the board believed

;| fthere were good prospects for the 'gradual development of that, > market. ‘l In Japan. the board had i arranged for a survey to be. ‘taken in the two main cities,' ‘Tokyo and Osaka. ■ < “I want to -emphasise that we, ■ have got to develop much larger [’horizons and be much more ad-! 1 venturous in our planning. We il have got to have initiative and :■ vigour and go out and get the ?! business in world markets. We J'have not only to promote trade, f but also to maintain it,” said J\lr .•I Ormond. .■ “New Zealand has got to be- ? come a trading nation and we. ’'for our part, believe we have a I great future as the world's leads ing meat-exporting country. But r we can realise that future only if - we bring constant pressure to r bear, and see that full advantage 1 is taken of opportunities in world i markets.’’