U.S. consumers flex muscles

Press, Volume CXIII, Issue 33191, 3 April 1973, Page 17

U.S. consumers flex muscles

WASHINGTON. April 2. . , The consumer movement in the United States flexed its .muscles last month with impressive results. Housewife resistance i to rising beef prices led’ to a decline in wholesale market prices, and: organised consumer protests forced a reluctant |Administration to con-’ • trol meat prices. On the eastern United ■ States seaboard, consumer i (interests plan to push on! (with a planned boycott of I meat. The public is beings urged to eat cheese and fish. But it is evident that for (the moment consumer organ-:

f.X.Z.P.S Staff . isations generally plan to .rest on their laurels, many of (them concentrating on making improvements to their organisational structure. TRADERS SCEPTICAL Scepticism is evident! among meat traders that the: White House-imposed ceiling on meat prices will prove (successful in the long term. It is apparent that many !farmers plan to hold back! stock from the market io| keep prices at the ceiling 'level. Shortages of supply (might occur and eventually the usually-pampered Amerijcan housewife might find it) will be only early-morning ■shoppers who get choice beef 'cuts. ! Farming leaders and the i Secretary of Agriculture (Mr : i Earl Butz) spoke of this during deliberations at the White s ■ House before the announce!ment of the price ceiling. It

Corre.spowdcMf i became apparent, however, ’(that political advisers to Pre- ■ sident Nixon believed a dramatic gesture was necessary Ito dampen public unrest. ’ Traders say there is less j than a 50 per cent chance of : the programme’s being sucIcessful over a long period. : They say that success depends on the quantity of stock coming forward for slaughter. PRODUCTION DOWN •I The Administration says there will be adequate supplies. But statistics of the United States Department ot Agriculture show that in February beef production was down 3 per cent, pork down 9 per cent, lamb and mutton down 11 per cent and poui:try down 5 per cent. Agricultural experts say world meat prices generally are high sim- ■ ply because of insufficient supply to meet the growing demand.

New Zealand trade officials have said for years that only through the existence of a

strong consumer lobby in the United States could the powerful and influential political lobby of American cattlemen lose some of ns power. Because there are two Senators from each state, this lobby has always found Senators from agricultural states able to resist legislative measures which might adversely affect the cattlemen’s interests.

The representation gives less populous farm states ■ such as Nebraska. Minnesota. (Colorado, and Wisconsin as [much say in the determinaItion of consumer matters as tlie highly populated states of New York. California. New Jersey, and Pennsylvania. Farm senators traditionally (have given support to urban senators on pork-barrel items such as reading projects in (return for support on farm issues of vital interest to their rural constituents. | VOTERS’ WRATH The consumer lobby indicated last month, however, that Senators with an urban constituency had better be- : ware of voters’ wrath on agricultural matters affecting ifood prices. This will inevitably weaken the ability of the farm lobby to win its own way. This will be of some cheer to New ZeaHand interests which have (long sought easier access to (United States markets — in (the face of opposition from (American farmers. ( It is clear that New Zea(land farmers have reason to 'thank the United States consumer movement. Had it not flexed its muscles, the beef quota would probably still be in existence, with little pros!pect of tariff removals.