Talks On U.S. Lamb Market To Resume

Press, Volume CX, Issue 32393, 4 September 1970, Page 24

Talks On U.S. Lamb Market To Resume

(N.Z.P.A. Staff Correspondent) WASHINGTON, September 3. Arrangements are being made for a resumption of talks between New Zealand, American and Australian sheepfarmers on the future development of the United States lamb market.

The talks are expected to be held late next month or early in November, in New Zealand and Australia. They will be attended by officials of the United States Department of Agriculture.

The objective is to review market supply patterns and estimates of consumer demand. The New Zealand Meat Board is also expected to pursue with the Americans the possibilities of joint lamb promotional ventures to stimulate demand.

Discussions sponsored by the Foreign Agricultural Service of the U.S.D.A. began in Washington in March. The talks will take place against a background of rising New Zealand lamb sales in the United States. Last year New Zealand shipped 10,000 tons of lamb to America. Market experts believe the figure for 1970 will be between 13,000 and 14,000 tons.

Several public forecasts have been made of a 50 per cent

rise to a total shipment figure of 15,000 tons, but a widespread view in Washington is that because of seasonal problems in New Zealand early this year such a quantity will not be shipped by December 31.

Marketing experts are optimistic, however, that the consumer demand will continue to rise at a rate sufficient to support a year-by-year 50 per cent lift in New Zealand’s sales. They point to a continuing decline in home-killed lamb and a steady rise in demand which has seen wholesale prices increase to about 70c per lb for loins and 66c per lb for legs. The Australian price is between 10c and 15c per lb lower than that for the New Zealand product These authorities believe that the American sheep industry will not find such a rising rate of New Zealand lamb sales unacceptable, although they emphasise that it is necessary for New Zealand to continue efforts aimed at stimulating consumption. Their message that con-

sumer promotion remains vital is underlined by inherent dangers in the Trade Bill, now expected to be considered by the Senate later this month.

The bill contains, as it now stands, a provision which would permit the imposition of quotas should total United States imports reach a level equivalent to 15 per cent of the American market. The provision was inserted at the request of United States manufacturers, but is apparently capable of being used against agricultural imports. Lamb imports at present approach 10 per cent of consumption, but . the message has not been wasted on the New Zealand Meat Board.

The board today began a two-day major promotional effort in three American cities—Los Angeles, Cleveland (Ohio), and Atlanta (Georgia)—and one state, Connecticut Using newspaper and radio advertising as well as sampling demonstrations in shops it hopes to stimulate demand and maintain the existing firm prices.