LAMB PRICES Meat Board may step in

Press, Volume CXIV, Issue 33434, 16 January 1974, Page 3

LAMB PRICES Meat Board may step in

(New Zealand Press Association! WELLINGTON, January 15. The Meat Board would not hesitate to take over the marketing of lamb, as it had done two years ago, if it believed exporters were being unduly pessimistic in the price they offered producers, said the chairman of the board (Mr C. F. 1 lilgendorf) today.

He was commenting on the latest reduction in the schedule price for export lamb, and on a suggestion made yesterday by the chairman of the Meat Exporters’ Council (Mr P. T. Norman) that a further reduction could be in the offing.

“Mr Norman is being unduly pessimistic, and is perhaps over-reacting a little to the situation in Britain, which, while not good, is probably not as bad as it seems,” said Mr Hilgendorf. “The British are known for their ability to withstand pressures on their way of life and, while some reduction in demand for our lamb is likely and the value of sterling could possibly alter, our own assessment of the situation is for a continuing offtake of New Zealand lamb at prices which should allow the schedule to be kept steady.” The point Mr Norman had made about the effect of the imposition of the first stage of the E.E.C. Common Customs Tariff — a duty of 8 per cent ad valorem — was entirely valid. At present prices, said Mr Hilgendorf, this imposed a burden of more than 7c a kilogram, and therefore represented a significant part of the recent drop in the schedule. “While opinions must differ as to how bad Britain’s economic crisis will become, there is no doubt that, under the circumstances likely to prevail, it will not be possible to recover this duty i from the market.” Mr Hilgendorf said recent; idevelopments had strongly] (reinforced the board’s policy] of continuing the lamb marketing diversification scheme this season, and at a slightly higher target percentage. “While the present situation is fraught with some problems, I would not like farmers to get the idea that the prospects are generally gloomy. There is a world shortage of meat, and this is likely to continue. Economic

and energy problems will be overcome although, no doubt, at some cost. There is, in fact, every indication that we are entering an era of increasing demand for food generally and protein in particular,” said Mr Hilgendorf.