E.E.C. expected to have little effect on N.Z. honey

Press, Volume CXI, Issue 32660, 16 July 1971, Page 6

E.E.C. expected to have little effect on N.Z. honey

(From Our Own Reporter)

GREYMOUTH.

The Under-Secretary for Agriculture (Mr Dick) told a questioner at the annual conference of the National Beekeepers’ Association at Greymouth on Wednesday that, although the effects of British entry into the E.E.C. were unknown at this stage, he did not think the implications would affect New Zealand’s honey market to any great extent.

’ In his report to the con-j ference, the chairman of the! Honey Marketing Authority, (Mr R. Poole) said export sales had been proceeding continuously at satisfactory prices. “The general manager has at times had all graded honey in depots committed for sale, and has been waiting for further deliveries to meet inquiries from buyers,” he said.

Sales to the United Kingdom and Europe to May 30 last had totalled 460 tons, an increase of 136 tons on the previous year. Sales to other territories had jumped from 45 tons to 756 tons, an increase of 711 tons in the same period. However, sales within New Zealand had fallen from 682 tons to 603 tons, which was unfortunate as the net return! to the local market was better than on the export market.

“The drop in sales is, in part at least, due to the fact that the authority increased its wholesale selling price by four cents a pound, but many other sellers did not increase their prices by the same amount,” said Mr Poole. “We have maintained our price despite loss of sales as we feel that a very unstable market would result if we entered into price cutting to meet the competition. Price wars never benefit the sellers—quite the reverse in fact, and our stance on this policy will be maintained.”

Some of the other sellers on the local market con--1 sidered that the authority

represented unfair competition to them, but figures showed that they had less competition today than they did in 1968 when three packing plants had separate owners and the drop in sales from that time was 198 tons. Over the three years, the authority had taken 315 tons of the local market and exported it. Stocks of honey unsold on hand at May 31 last were 894 tons, which was 400 tons less than the 1294 tons on hand at May 31. 1970.