Opportunities For N.Z. Trade With East Mediterranean Lands

Press, Volume C, Issue 29479, 4 April 1961, Page 15

Opportunities For N.Z. Trade With East Mediterranean Lands

Some of the countries in the East Mediterranean area—more especially Greece, Cyprus, Jordan and Egypt—offer opportunities for development as future markets for New Zealand, particularly for meat, wool, tallow, hides and to a lesser extent milk powder, cheese and butter.

This is the opinion of the executive officer, trade promotion. in the Department of Industries and Commerce <Mr A. G. Beadle* in an article in “Export News" the department's newsletter. Mr Beadle recently visited Egypt. Jordan, Lebanon, Cyprus, Israel. Turkey. Greece, and Jugoslavia.

New Zealand’s exports to the area had been small, averaging about £910,000 a year or about 0.4 per cent, of the total exports to all destinations, he said. Imports into New Zealand from the area had been negligible except for oranges from Cyprus and figs and nuts from Turkey.

Although there were factors limiting New Zealand as a supplier to some of the countries in the area. Mr Beadle thought that the Eastern Mediterranean was well worth looking at more closely with a view to developing future markets, particularly if means could be found of engaging in twoway trade and of providing direct shipment of small quantities at regular intervals.

Commenting on New Zealand's trade prospects with the countries he visited, Mr Beadle said:— EGYPT

"There is trade to be done with Egypt in items of interest to New Zealand—wool, tallow, mutton, beef, canned meats and fish, hides, milk powder, wood pulp and newsprint Whether New Zealand can compete for the business on the terms and conditions desired by the Egyptians and being offered by some other countries seems doubtful.” JORDAN

"Unti! 1960 New Zealand’s annual trade with Jordan has been negligible and. at best, has never exceeded a few hundred pounds. “After a vis‘t to New Zealand early last year by representatives of the Jordan Army, a contract was arranged for the purchase in New Zealand of the Army’s frozen mutton requirements for 1960.

"The Jordan Army has been well satisfied with the meat shipped under the contract and it is reported that the

troops have expressed a preference for frozen meat to replace canned meat rations. “Although the Army is at present the only substantial importer of frozen meat, a civilian demand could possibly develop in time. The people are mutton eaters but have a strong preference for fresh meat and would need to be educated to use the frozen product The experience of the Army could assist in this. “Traders are keen to import from New Zealand and. given a continuation of the Army meat contract to provide the required minimum shipping tonnage, and the development of the cold store facilities at Aqaba and Amman, there should be in Jordan a small market, with prospects for expansion for mutton, butter, cheese, and milk powder. “A tanning factory and a textile factory for the manufacture of blankets and cloth scheduled to start production later this year, and sales of hides and wool may also be possible. LEBANON “The market is extremely price conscious and price is of much more interest than quality. There is also b definite bias on the consumer's part towards local preferences and established brands.

“These factors, together with the strong speculative element in the market and the advantage our competitors in Europe have in freight costs in the absence of direct shipping from New Zealand, make the establishment of a stable longerterm outlet for New Zealand products unlikely except, perhaps, for some quantities of milk powder. Small sales of butter, cheese, ghee, and tallow may also be possible from time to time. CYPRUS “From a New Zealand point of view there is a good small market in Cyprus with possibilities of expansion for mutton and lamb, butter, cheese, milk powder, and perhaps fish. ISRAEL “Traders in Israel are very interested in doing business with New Zealand, but the

best that can be hoped for under present conditions seems to be a continuation, and possibly some increase in sales of hides; a share of whole milk powder imports; and some sales of wool once top wool production is commenced. “Supplies of beef may also be required from time to time to maintain reserve stocks. “Sales of wood pulp and frozen fish are possibilities, but the shipping problem and the advantages held by European suppliers make these doubtful. TURKEY “Because of its considerable agricultural potential and serious shortage of foreign exchange, Turkey appears to offer small prospects of a market for New Zealand except for hides and, perhaps, wool. GREECE

“The Greek market is essentially a price market ,and, provided competitive prices can be quoted. New Zealand exporters should be able to obtain an increasing share of Greece's imports. “Items of interest to New Zealand imported into Greece for which there should be a continuing and increasing demand in the future are mutton, beef. wool, tallow, hide sand skins, wood pulp, newsprint and hops. “There are also imports of milk powder, condensed milk, and cheese although, as a result of the development programme. it is hoped that imports of these items will cease by 1963. “For meat in particular Greece seems to offer New Zealand a good longer-term outlet. The people are mutton eaters and seem to have fully accepted the frozen product. Under the development programme imports of beef and mutton (fresh and frozen* are expected to rise from the present 30.000 tons to 36,000 tons by 1963. “If, however, the Domonion is to make headway in the market against Argentine competition, direct and regular shipments are essential. “At this time Greece seems to offer the best prospects of any of the markets in the eastern Mediterranean area: and should prove worth look-j ing at closely from a devel-' opment point of view.” JUGOSLAVIA

“Keen interest was expressed in Jugoslavia in the possibility of expanding trade with New Zealand—with emphasis very much on twoway trade—and in the shorter-term sales of butter and perhaps tallow and milk powder which could probably be made provided they were balanced by New Zealand purchases of Jugoslav products of about the same value.

“However, because of its considerable agricultural potential and the efforts now bei: g made to diversify production and increase output of livestock products, Jugoslavia appears to offer small prospects of a longer-term market for New Zealand products other than hides and wool.” said Mr Beadle.