LAMB EARNING DOLLARS

Press, Volume CIV, Issue 30937, 18 December 1965, Page 3

LAMB EARNING DOLLARS

(N.Z. Press Association) WELLINGTON, Dec. 17. Sales of lamb to the North American market in the last four years had earned New Zealand about 30 million dollars, said the chairman of the meat board (Sir John Ormond) said today. "This was in addition to the many millions earned from beef sold to those countries,” he said. There had been so much comment in the press In the last few weeks on meat marketing, some of it very misleading, that he said he thought it desirable he should state the facts.

“The meat industry Is at an important stage of its expansion,” said Sir John Ormond. "We must look well ahead to future marketing

and we have been developing plans accordingly. “In New Zealand's economic development, we are, of course, in the front fighting line. This is the way it should be. The debate that has been going on has been a healthy indication of the awareness among our producers, exporters and the Government of the vital issues." Sir John Ormond said that progress in North American market development for lamb was a most significant factor in this year’s “very good” sales of New Zealand meat overseas.

There had been a published suggestion that the loss had been incurred for New Zealand in this development work, but this was quite untrue. Not only had there been substantial dollar earnings from lamb sales, but these had been an important contributing factor to the strength of prices in the main lamb market in the United Kingdom.

During the year, lamb prices in the United States and Canada had been raised by about 30 per cent. This was the result of meat market trends, and of the demand developed among chain stores by the board’s first promotion project in the United States. Newspaper discussion in recent weeks had arisen out of the board's determination that a new stage in the development of New Zealand's overseas marketing must be reached, namely, the development of sales to a still greater degree outside the British and North American markets. This was not because of any lack of strength in these markets, where there was a strong, unsatisfied demand, but because New Zealand obviously must spread the area of her marketing. Sir John Ormond said some newspaper reports had been talking in gloomy terms about the forthcoming discussions on New Zealand's right-of-entry to the United Kingdom

market. He had no gloom about this. It was wrong to suggest that the British Government intended to restrain the flow of New Zealand meat to the British housewife. “The outstanding fact of the last two years’ trading in Britain has been the consistency of New Zealand’s supply of meat for the trade in Britain,” he said. “Other suppliers have not been consistent, and but for the maintenance of the flow of New Zealand meat in response to the demand of the British consumer, there would have been a grave shortage in Britain this year.” In spite of large sums of money being spent in Britain to encourage meat production, the British need for continuing and increasing supply from New Zealand was a most evident factor in meat trading in Britain today. It was important to make it quite clear that New Zealand was planning increased production, primarily to meet the expanding demand in Britain, but also for developments elsewhere.

“On this question of market development, I have had further discussions this week, and 1 am confident that in the New Year we will have general agreement among producers, the Government and the exporting trade on a national plan in which all of us will co-operate, in the public economic welfare.”