Demand Outstripping N.Z. Production

Press, Volume CIII, Issue 30472, 20 June 1964, Page 7

Demand Outstripping N.Z. Production

(from Out Own Reporter) WELLDIGTON, June 19. Efforts to find extra markets and to dispose of New Zealand’s primary and secondary produce have been so successful that, in order to make best use of those markets, New Zealand i.aust produce even more. This was the message given this evening by the Minister of Overseas Trade (Mr Mar-

shall) at the conclusion of a meeting of the Trade Promotion Council, of which he is chairman. Members of the council gave many instances of the expansion of New Zealand markets. It was even suggested by some that overseas prospects were so bright that New Zealanders might be asked to consume less, in order to assist to even greater advantage the overseas balance.

To Mr K. B. Longmore (Apple and Pear Marketing Board), who made this suggestion, Mr Marshall said: “People like to have their apples and eat them too, you know. I don’t think it would work if we said: ‘You can’t have apples, but maybe you will have a few more cars instead.’ ”

In making a. general summary of the situation, Mr Marshall said: “Efforts to expand and diversify our production have been so successful that the answer is now to expand our production in order to fill the markets to which we now have access. This does not mean that we can afford to slacken off—rather the reverse.” More Markets Mr Marshall said that in 1955, when bulk-purchase agreements ended, 65.6 per cent of New Zealand’s exports by value went to Britain. In 1963, New Zealand’s sales to Britain amounted to 46.5 per cent of our output. This did not necessarily mean that the volume dropped, but it certainly did mean that the number of available markets had increased.

Ten years ago New Zealand’s sales, to the United States had amounted to 6 per cent, with a similar percentage to France, and some 3 per cent to Australia. Today, the United States was taking 17 per cent of our exports annually, totalling £56 million.

The Australian percentage had increased tb 5.5, Japan was a significant buyer, as were Malaysia, Hong Kong, and many of the new African states.

In 1955, Mr Marshall said, the United Kingdom had taken all New Zealand’s export butter. Even today, the percentage was very high, and the trend had changed back for the time being because of the European shortage.

The United Kingdom still took 92 per cent of our butter, and this would add up to 168,000 tons for the 196465 season.

At present New Zealand was trying to send as much as she could to the United Kingdom, while keeping up commitments elsewhere.

“We are selling all the butter we have at present, at satisfactory prices,” Mr Marshall said. “To serve Britain we have to cut supplies to markets newly opened up. We must try to keep these markets, however much we want tb help Britain.”

He added that New Zealand now sold 12 per cent of her cheese exports and 80 per cent of her casein in markets other than the United Kingdom.

On the wool side, Mr Marshall said, the theque for 1963 was £ll3 million, of which Britain took about 30 Por cent Diversified The United States, France and Japan were all significant buyers. In parallel with this market development was a diversification of the product. Our general knowledge of the types of wool and wool products required had increased. There were many exports of such items as car-

pet yarn, which was going In quantity to South-east Asia. Ten years ago, Britain took 87 per cent of New Zealand's

meat exports. Now the figure was 51 per cent. The building-up of beef and veal exports to the United States, and mutton exports to Japan, had made the difference. “We could sell much more to Japan, if we had it to sell,” Mr Marshall said. “This applies to many other products and countries.”

He gave instances of New Zealand Trade Commission-

ers all claiming more products could be sold in their areas. Only that day he had heard this story from the New Zealand Commissioner in West Africa (Mr J. B. McGuire). “Beef Back” “But now, in 1964, we have been sending beef back to Britain to meet a shortage there,” Mr Marshall said.

“Only a few months ago, our products were thought to be surplus in Europe.” He said that 10 years ago meat went to the United Kingdom by the carcase. Today there was a growing trade in pre-packaged beef to the United States and pre-pack-aged lamb to Canada. The switch back to the United Kingdom had tended to reverse this process, but it was sure to grow. Exports of manufactures, he said, nine years ago had amounted to £1.5 million. Today our manufactures sold overseas were valued at £11.2 million annually, and the amount was growing. An amazing number of manufactures were being sold in an increasing number of countries.

In wood products alone, £2.5 million worth went overseas annually, plus a similar amount of newsprint. Each year we now sent 100,000 tons of newsprint to Australia. Members of the council supported Mr Marshall’s view.

Mr S. E. Muir said that shortly, because of an arrangement between producer boards, a working'delegation would go to Japan to explore the market there for pickled pelts (lambskins). “Kiwi Fruit” Mr A. R. Simm said that Chinese gooseberries had received a remarkable boost through being chosen as "fruit of the month” by an American group. The proposal was to call it “kiwi fruit”—“though I regard this as a terrible name.”

“The emphasis should be on export quality,” Mr Simm said. “In Australia the trade organisation provides stickers for the product and stationery for overseas communications. We should do the same. It should be a proud boast that this firm is taking part in our export drive’.” Mr S. C. Scott said that the best incentive to firms and to primary producers was the knowledge that all they produced could be sold. Mr A. Ward said that though at the present time New Zealand had to keep faith with Britain, It would be a pity if we did so at tha expense of our new markets. We would need these markets in five to 10 years’ time.