“Other” Exports

Press, Volume CVII, Issue 31504, 19 October 1967, Page 16

“Other” Exports

Amid the clamour caused by the collapse of the wool market this month, the price of New Zealand lamb on the Smithfield market has climbed, almost unnoticed, to 27d per lb. Since mid-August, Smithfield prices have been consistently higher than 1966 levels. Last week’s 26Jd to 27d (for prime Canterbury lamb, 291 b to 361 b) was Id per lb higher than the comparable 1965 price—the first time this year that Smithfield values have exceeded those of two years ago. Only once in the last five years have October prices been higher than at present. It would be foolish to read too much into the recent behaviour of the Smithfield market. Labour disputes on the London docks have reduced the flow of meat from the wharves to the market and placed a premium on spot supplies. If the disputes continue much longer little or no New Zealand meat may reach the market, and costly freight and storage charges will be incurred. The fact remains that New Zealand lamb has been in good demand at Smithfield since the end of July and that prices for an increased quantity of lamb have, for one reason or another, been higher than a year ago. By the end of August New Zealand’s global receipts for meat totalled $155 million, only $2 million less than in the first eight months of last year. September and October receipts should reflect the higher United Kingdom prices in the last two months. Butter, cheese, and other dairy products all earned more overseas exchange in the eight months to August. “ Other animal products ” —mainly hides and skins—earned $l4 million less than last year; but forest products and other primary products earned $5 million more. The major change was the $BO million drop in receipts from the export of wool; total export receipts were $73 million less than in the first eight months of 1966. The shortfall in wool receipts was more than made up by increased export earnings from other products. Dairy exports may not be so bouyant for the rest of the year, largely because of the dumping of butter oil on the United Kingdom market; but there is every prospect of increased earnings from meat. Thus, the severe drop in the price of wool, until this year the main export earner, should to some extent be offset by higher earnings from other exports. Payments for private imports are now running well below last year’s. The outcome of the year’s trading may not, after all, be as bad as seemed likely: a smaller surplus, certainly, than last years, but not so much smaller as the drop in wool prices would suggest.