Meat Promotion By N.Z. In America, Europe

Press, Volume CIII, Issue 30482, 2 July 1964, Page 13

Meat Promotion By N.Z. In America, Europe

(NJZPA.-Reuter— Copyright)

WASHINGTON, July 1.

The Tariff Commission yesterday reported that beef-exporting nations such as Australia and New Zealand were likely to sell more meat to Europe, thus easing fears of over-supply in the American market. *'

The commission’s report made no recommendations to restrict foreign supplies to the United States.

The investigation by the commission followed a sharp drop in U.S. cattle prices last year and demands by American producers that frozen beef and veal imports, which had risen rapidly since 1958, be reduced.

Australia, ' New Zealand, Ireland and Mexico—the four biggest suppliers—earlier this year agreed to limit their shipments to the average levels of 1962-63. Since then, the report said, information from Australia and New Zealand indicated that their exports to the U.S. in 1964 would be about 29 per cent less than in 1963. “The projected low level of imports reflected a shortage of beef in European markets that has been developing since 1963,” the commission reported. RISING PRICES “Reports from the trade indicate that the rising prices of beef in the United Kingdom and other European countries during the spring and early summer months of 1964 are attracting supplies from Australia, Now Zealand, and other countries, including the United States. “Beef-exporting countries are likely to direct their shipments of beef ... to the highprice ■ markets of Europe rather than to the United States.” AMERICAN SALES

The commission said that, at President Johnson’s request, a delegation of American cattle producers visited Europe in May and reported finding a potential export market for U.S. beef. By early June, it said, several exploratory sales to Europe had been made. While the commission’s report traced the growth of foreign shipments to the United States up to 1963, it also rioted that increased American cattle production had been an important factor.

For instance, U.S. beef production in 1963 was 76 per cent greater than the annual average production in 1950-52. Imports grew from 200 million lb or 1.3 per cent of U.S. consumption in 1956, to 1700 million lb or 9.2 per cent of consumption in 1963. Australia and New Zealand together supplied 76 per cent of the U.S. imports in 1963. N.Z. VOLUME The report said the United States was by far New Zealand’s leading foreign market for beef and veal and accounted for about 77 per cent of New Zealand’s exports in 1962-63.

“Since 1959,” it said, “New Zealand has ranked second to Australia as a supplier of U.S. imports of fresh, chilled, or frozen beef and veal. In 1963,

New Zealand supplied about 24 per cent of the total U.S. imports of such, meat’! The Commission’s 171-page report now goes to the Senate finance committee which is considering legislation to pla'ce’ tight controls on imports. President Johnson’s Administration, however, has opposed the restrictive legislation and government officials have said that the President would veto any' such bill passed by Congress.