Requirements For N.Z. Markets In Europe

Press, Volume XCIX, Issue 29232, 16 June 1960, Page 10

Requirements For N.Z. Markets In Europe

(Special Correspondent NJZ.P.A.) LONDON, June 14. If New Zealand wants to establish supplementary markets in Europe, notably for lamb, she needs diplomatic and trade representation in areas where she intends to develop trade; the co-operation of the producer boards, and in the case of lamb, mutton, and beef, the meat exporting firms; large sums for advertising and marketing campaigns; and the organisation for a follow through after the initial break-in.

In the first place, Government representation is needed to pave the way for trade agreements to allow the importation of New Zealand produce. These will have to be negotiated against the background of New Zealand arguments in G.A.T f T., and in the first instance they will have to be carried out on a diplomatic and trade level.

As has been said already, the titne has passed when New Zealand can continue to look to representation in Europe sometimes “on the cheap.” The only people who can argue New Zealand's case effectively, and offer trade quid pro quo’s, are New Zealanders.

New Zealand has an Ambassador in Paris and a Consul engaged in immigration in The Hague, but she has not a single trade representative in Europe. Recently, her senior Trade Commissioner in London has had what amounts to a roving commission in Europe. He has also had to provide staff for G.A.T.T. meetings in Geneva and F.A.O. meetings in Rome. The “parish” and its work are too big to be covered efficiently and adequately from London.

During his recent visit to Europe, the Prime Minister (Mr Nash) said it was not the Government’s intention to appoint either diplomatic or trade representatives in other European countries because of the expense, and apparently an uncertainty as to the number of posts which would be needed and their locality. His decision is against the weight of opinion of those who hope to see New Zealand markets expanded in Europe. Exhibitions and Advertising

In the second place, once openings have been made at Government level for New Zealand to develop trade in Europe, the producer boards can—as they did at Cologne and The Hague —take a share in the cost of exhibitions, advertising, and demonstrations such as the cooking of free samples of lamb. They can also notify and encourage the meat-exporting firms to supply meat to potential markets with an assurance that the campaign will be permanent and not temporary. The third requirement is to break through the Continental

“taste barrier” against lamb. Large sums will be needed, not only for advertising, but also for continual demonstrations and various forms of public relations, including the canvassing of housewives’ organisations and cookery experts. Placards saying “Eat New Zealand Lamb” would mean little, but demonstrations of lamb cooked to the Continental taste would mean much, if not everything. Already there are indications that Europeans do like New Zealand lamb if it is cooked to their recipes.

The fourth need, for an organisation to follow up initial exhibitions, is self-evident, and is necessary for meat firms and local butchers seeking a permanent rather than a novelty trade. Pattern At The Hague

A pattern including these four points seems to have worked out quite well at The Hague. First there was inter-Government negotiation, resulting in the Dutch removing quantitative restrictions and replacing them by an ad valorem duty of 12 ppr cent. The New Zealand Consul (Mr T. A. N. Johnson) was subsequently able to do some valuable public relations work through his own butcher. Next, the Department of Industries and Commerce, the New Zealand Meat Producers’ Board and the New Zealand Apple and Pear Marketing Board shared the cost of the stand. The Meat Board engaged an international advertising and public relations firm to interest housewives and catering organisations. Local butchers were canvassed, resulting in 60 to 70 inquiries for continued supplies. Three meat-exporting firms were invited to supply lamb, and they say they are keen to continue these supplies to Dutch butchers. The results are now being assessed of reactions to the exhibition, and a decision will be taken on whether efforts should be made to establish a small market in Holland. No New Zealand bonnets are being thrown over any Dutch windmills so far in celebration of a penetration of the taste barrier” in Holland.

Further Ventures But it does look as though a useful pattern has been worked out for further ventures, and that New Zealand could get better value for her £6OOO spent at The Hague than for the £5OOO in Cologne. There are many complications, of course, apart from interGovemmental ones. They include the Continental dislike of fatty meat, and the need for direct shipments to Continental ports. . ~ . „ What is needed, above all, is a clear and definite Government policy on European trade, backed bv direct representation, and an adequate budget for market development. Otherwise, there seems little noint in New Zealand continuing to increase her production. I cannot all come to Britain, and supplementary markets have to be worked for before they can be won.