PRICE FACTOR IN N.Z, MEAT MARKETING

Press, Volume XCIX, Issue 29178, 12 April 1960, Page 12

PRICE FACTOR IN N.Z, MEAT MARKETING

• The price factor was a governing consideration in the marketing of New Zealand meat exports, Mr P. T. Norman, general manager for New Zealand of Thomas Borthwick and Sons (Australasia), Ltd., told a field day at the company’s Belfast ■works yesterday when the annual hooks-judging of the Canterbury chiller type beef competition was Jheld.

* New Zealand meat has been to 32 different countries, Mr Norman said. He described Conditions pertaining to meat trading in some of these countries.

In Japan the market for boneless beef shrank because demand and the price that could be obtained on the American market were more attractive. The Japanese market, however, was being kept under observation and company officers had made visits Jhere.

■ ‘New Zealand Is fortunate In having Mr John Scott as Trade Commissioner in Japan. He does > wonderful job for this country end is always ready to welcome »nd assist those who go up there on a selling job,” Mr Norman paid. ► There were certain practical problems in Japan, such as the lack of adequate cooking facilities as known in New Zealand in a high percentage of the homes, and although there were extensive cold stores in the OsakaKobe area, these were not available in the Yokohama area. •The United States and Hawaiian market prospects were being investigated and problems Jroned out. The reason why nearly all New Zealand boneless beef Was sold to the United States, while it had been relatively difficult to sell any significant quantity of lamb, was the price factor. , “The price for boneless beef in the United States is much higher than that pertaining elsewhere In the world, particularly in the llnited Kindgom, which would be the other principal user. J "The United States market <ives us the best return and it pives the best return to those echo make our boneless beef into hamburgers," he said.

This did not apply to lamb, but if and when the price factor pointed to the United States being a more profitable outlet for New Zealand lamb then it would go there as easily as boneless beef had done. So far there had not been sufficient price encouragement to move any substantial quantity of lamb to the United States.

In Canada the competition offered by Australia to New Zealand lamb sales was also the result of price. Australian lamb sold in the United Kingdom at a discount compared with New Zealand. Extensive advertising by the Meat Board resulted in a premium being paid for New Zealand lamb. This enabled the Australians to accept a lower price in Canada than New Zealand could accept without selling below their United Kingdom figure. Another advantage the Australian exports enjoyed was that their main lamb season occurred in September-October which was roughly three months ahead of New Zealand’s. New season’s Australian lamb could thus beat New Zealand to the market. The Mediterranean countries, Europe, the Caribbean, and Rhodesia were kept in contact with by local agents and market information was supplied. Trading figures to markets outside the United Kingdom are well ahead of last year’s figures to the same date and the company had sold more than 9000 tons so far this year. This was twice the capacity of the storage at Belfast. The Belfast works were to be extended in the coming off-season to increase the mutton and lamb slaughtering capacity. This was intended to enable the company to keep abreast of the increasing sheep numbers in Canterbury, Mr Norman said.