Important Japanese Market Forecast

Press, Volume CVIII, Issue 31836, 14 November 1968, Page 26

Important Japanese Market Forecast

(New Zealand Press Association) WELLINGTON, November 13. Bright hopes for future New Zealand exports to Japan were expressed today by the Minister of Finance (Mr Muldoon).

Speaking to the Auckland branch of the sales and marketing executives, Mr Muldoon said that although Japan still provided four-fifths of the food consumed in Japan, Japanese agriculture was facing serious difficulties. He said there was a labour shortage in agriculture there and a high proportion of the farmers were elderly. He said 78 per cent of the workers were women.

“The basic crop is still rice and the price trend for this cro-p is steadily upward, although its effect on the cost of living is rather less than

it might have been because i of changes in the nation’s diet. “The price of secondary food products, such as vegetables, has also soared in recent years,” Mr Muldoon said. Mr Muldoon said the extension of livestock farming in Japan was handicapped by the shortage of grazing land. High Duty “Although rice, meat, dairy products and other foodstuffs are still subject to quantitative restrictions and relatively high import duty, it seems clear that economic pressures will force a gradual liberalisation of these quotas,” the Minister said. Mr Muldoon said if this were to happen it would be possible, by means of im-

ports from countries such as New Zealand, to stabilise or even reduce prices. “It has been estimated by the United Nations Food and Agriculture Organisation that by 1975 Japan will have to import 171,000 tons of beef and veal and 76,000 tons of mutton—a massive increase over present figures,” Mr Muldoon said. Fishing Effort Mr Muldoon said the phasing out of the Japanese fishing effort in New Zealand waters over the next year or two provided an opportunity for New Zealand fishermen to supply fish to the Japanese market. “I remain confident that a major export industry can be built and expanded on our resources of fish,” he said. Mr Muldoon said other trade areas where New Zealand could benefit from Japan included tourism—he said golf and ski-ing loomed large in the Japanese mind for recreation and these, linked with scenery, must be major selling points Tor New Zealand. He said co-operative research would be necessary in all fields in order to expand the country’s overseas markets.

“Cold, Hard Look” “The aim of the Government is to start from the cold, hard look at ourselves that has been necessary during the last two years, project that examination into the future, and then give a lead to ensure that not only do we see our new horizons but that we reach them," Mr Muldoon said. The Minister said it was clear that Britain would remain New Zealand’s best market for a considerable time. “Britain needs our supply of foodstuffs to maintain the cheap food policy which has been accepted by successive British Governments. Facts Accepted “I am glad to tell you that in my recent discussions in Britain these facts were clearly understood and accepted, although the difficulties inherent upon British entry into the European Common Market are in no way minimised,” said Mr Muldoon. Speaking of future development, Mr Muldoon said although New Zealand was not “out of the wood” as yet he believed the economy was fundamentally sound.