N.Z. may divert lamb from U.K.

Press, Volume CXIV, Issue 33447, 31 January 1974, Page 3

N.Z. may divert lamb from U.K.

/Special Correspondent N.Z.P.A.I LONDON, January 30. A hint that New Zealand would divert lamb supplies from Britain unless the market position improved was given by the chairman of the Meat Board (Mr Hilgendorf) in a statement tonight.

Mr Hilgendorf, who curtailed a visit to the United States to seek urgent talks with meat and shipping companies in London, said “some rephasing” of the shipping programme would be necessary.

His statement was issued after two days of talks. He expects the talks to conclude tomorrow.

“During the last six weeks New Zealand lamb producers have become increasingly concerned about successive drops in the meat operators’ export schedule for lamb,” Mr Hilgendorf said.

“In view of these circumstances, it should not be surprising that the board considered it necessary for me to curtail my visit to North America and come to London for discussions with members of the major marketing concerns which handle our meat, and also to talk with representatives of the shipping lines.

25p.c. PRICE CUTS “In total over the period, the offering prices have been reduced by something approaching 25 per cent. The board fully appreciates that there are a number of factors which have had a direct influence on this situation. Not the least of these is the very difficult economic position in which the United Kingdom, our largest lamb market, finds itself at the present time. “As a direct consequence of this situation, we have had to contend with frequent fluctuations in sterling values. Added to this, our shipping costs have risen sharply as a result of the oil situation on bunkering charges. Also, since January 1, for the first time, importers of New Zealand lamb have had to pay an 8 per cent ad valorem (in proportion to the estimated value) duty on the entry of products into Britain. “I see the present situation as being of vital concern, not only to New Zealand meat producers, but indeed to the whole New Zealand meat industry. It is only proper at such a time that we should have the closest dialogue with all parties concerned. “I should also like to point out that on the production side in New Zealand we have recently had occasion to revise downwards our estimates of lajnb production for the season. This, together with the market situation in the United Kingdom, will require

some rephasing of our shipping programme.” Mr Hilgendorf added that on his return to New Zealand he and the board would carefully consider the position. Future action would depend on events outside the board’s control, “such as the future course of industrial disputes in the United Kingdom, and trends in sterling exchange rates.”

“WISHY-WASHY” The statement was described as “a bit wishywashy” when referred to the official spokesman for the National Federation of Meat Traders (Mr Len Moss) for comment.

But Mr Moss, whose organisation represents 25,000 independent butchers in England and Wales, said the retail trade accepted that meat of any kind would find its way to the highest bidder.

“We are getting increasingly realistic about this,” he said. He added, however, that the New Zealand people

should understand that “the be-all and end-all” of the matter depended on what the consumer was prepared to pay.

British butchers, for the first time, were finding themselves in the position of being able to recommend beef as a better buy than New Zealand lamb.

“Beef prices rose early last year, and there was a lot of moaning,” he said. “People looked elsewhere, and there was a bit of a switch to New Zealand lamb. But the situation has changed completely. Beef prices have, remained fairly stable, but lamb prices have gone up 50 per cent.”

Mr Moss said new season’s lamb being sold at Smithfield had shown a drop in price at a time when it would normally be expected to attract a premium.

“If it is dropping in price when it normally calls the tune, no wonder the importers are wondering what the price is likely to be in three or four months, when the home-killed product comes back on sale.”