EXPAND SHEEP AS WELL AS CATTLE

Press, Volume CVIII, Issue 31730, 13 July 1968, Page 8

EXPAND SHEEP AS WELL AS CATTLE

The New Zealand Meat Producers’ Board says that farmers should expand their production of both sheep and beef cattle, and believes that in the long term there is a good market for all the meat New Zealand can produce economically, although there are bound to be price fluctuations. “It is the opinion of the board that the type of stock that the fanner runs will be principally determined by his individual circumstances such as topography, rainfall and labour, as well as the price of wool —but certainly not primarily by the relative prices | of beef and lamb,” the deputy chairman of the board, Mr C. Hilgendorf, of Sherwood, Mid-Canterbury, said this week, Mr Hilgendorf, referring to recent publicity supporting a swing to beef production, said it was important to consider the pros and cons of whether the future prospects for beef cattle were more attractive than for sheep. “The arguments in favour are very simple, well known, and very compelling,” he said. “Beef is the meat of first choice in most countries. The standard of living is rising in many countries so the demand for meat is increasing and is likely to continue to increase. I “A large percentage of our I lamb goes to the United KingI dom and this makes us unI duly vulnerable to United I Kingdom Government deciI sions, such as those relating I to quotas and the E.E.C., 1 which might not be to our ad-

vantage. The board’s policy Is to reduce our dependence on that market and believes this is possible, though not easy., Finally the present price for our beef overseas is good. “The argument against beef being a better longterm prospect than sheep is also well-known, but perhaps less well publicised. “First, though, the factors which indicate good prices for beef have been present during the last 15 years, there have been two quite serious price drops during that time. “Second, apart from ' the United Kingdom, there are quotas on the importation of beef in nearly all our present and potential markets. This is because nearly all countries have a significant cattle population and, therefore, a significant number of farmers who require protection from imports; much fewer countries have quotas on sheep meats. “Third, we send nearly as large a proportion of our beef to the United States as we send lamb to the United Kingdom and certainly we are not less vulnerable to governmental interference. Though the quota for our beef imports is comparatively generous, any large increase in production could not go to the United States. Furthermore, over recent months there have been very real threats that our present quotas would be drastically reduced. Beef excluded from the United States of America would sell at considerably lower prices than those ruling at present. “Fourth, it appears at least possible, there may be a very considerable increase in beef from the dairy industry. “Fifth, if there is to be a great upswing in world meat production it is more likely to be beef than sheep meat. The

tropical and sub-tropical parts of Australia, South America and perhaps Africa are potentially much larger exporters of meat—but of beef, not sheep meat. “Sixth, while the Food and Agriculture Organisation predictions for international trade in beef by 1975 are optimistic, they are certainly not less so for mutton and lamb. “The board believes that farmers should expand their production of both sheep and beef cattle. It believes that long-term there is a good market for all the meat we can produce cheaply, though there are bound to be price fluctuations. The type of stock the farmer runs will be determined by his individual circumstances, such as topography, rainfall, and labour, the price of wool—certainly not primarily by the relative prices of beef and lamb.”