MIDDLE EAST TRADE Shipping Lack Hinders Exports

Press, Volume CVI, Issue 31262, 7 January 1967, Page 14

MIDDLE EAST TRADE Shipping Lack Hinders Exports

“The Press” Special Service AUCKLAND, Jan. 6.

Difficulties in securing refrigerated shipping services to the oil-rich Middle East are preventing New Zealand exporters from developing profitable markets for meat and dairy produce in the Persian Gulf.

In a letter to the editor of the “New Zealand Herald,” Mr B. G. Fuller, a New Zealand oilman working in Bahrain, says there are excellent opportunities for New Zealand exports to Bahrain. He quotes a large importer of foodstuffs there, Mr G. Akhtarzadeh, of Moon Stores, who said he had written to New Zealand exporters but had received no replies. Moon Stores would be pre-

pared to take large shipments of New Zealand products at the right price as it had cold storage sufficient to hold large quantities.

The company was interested in butter, cheese, meat, tinned fruit and frozen food and could pay in sterling, American dollars, Bahrain dinars or “almost any currency the shipper wished.” Historic Link Mr Fuller points out that New Zealanders have an historic link with the area. In 1925 a New Zealander, Major Frank Holmes, who was drilling artesian wells in the area, tried to interest British oil companies in helping him with an oil drilling concession.

Receiving no encouragement, Major Holmes turned to America and the Bahrain oil industry was born. “Now it is New Zealand’s turn to share some of the wealth to be found in this oil-

rich sheikhdom,” says Mr Fuller.

Mr Fuller states that the one importer has an initial requirement of 40,000 pounds of meat bi-monthly and large quantities of other foodstuffs. The importer considers that his needs would increase at least 40 per cent in a few months.

The existence of a profitable market in the Persian Gulf is appreciated by New Zealand exporters—but getting the goods there is the problem.

Mr H. C. M. Douglas, of the Meat Board, said in Wellington yesterday that some meat was shipped to Bahrain from Beirut. There was no direct shipping service to the area from New Zealand.

There was po difficulty in supplying sheep killed according to Moslem rites as this was done for some shipments to Malaya. “There have been no inquiries for shipments to Bah-

rein, but we are in touch with the situaion there through reports from our agents and from the Consul-General in Athens, Mr A. C. Davys,” said Mr Douglas. If any importer wrote to the board, the board would immediately circulate the inquiry to exporters. Rate Excessive Mr N. Jones, of the Dairy Board, said the market possibilities of the area were not overlooked but shipping problems were most difficult. Shipping lines would not accept responsibility for through bills of lading for refrigerated freight to Bahrein. The board had investigated the possibility of supplying the area through London but the rate was excessive for refrigerated cargo. Generally European producers had better access to Middle East markets and through their heavy export subsidies could offer lower prices. General crago to the

area had to be transhipped at Port Said.

Sir James Wattie, managing director of J. Wattie Canneries, Ltd., said in Hastings that his firm had supplied some fruit and vegetables to Bahrein in the past. “But shipping is a major problem,” he said. “At present we have orders for Bubayy and Doha, also on the Persian Gulf, and we are in the throes of arranging shipping. “We are at a disadvantage over costs to that area because transhipping is generally involved,” said Sir James. “But I quite believe that there is reasonable business to be done there, and we have been looking into it. We can probably get over the price problem, but the question of regularity of supply, as a result of shipping problems, is much more difficult, “We are certainly looking' into the possibility of selling more of our goods in that part of the world."