Lamb intervention "not yet warranted’

Press, Volume CXIV, Issue 33451, 5 February 1974, Page 2

Lamb intervention "not yet warranted’

Artr Zealand Press Association) WELLINGTON, February 4. I he Meat Board would not intervene at present in the marketing of export lamb because it considered this was not warranted, the chairman (Mr C. Hilgendorf i said today after a special meeting of the board.

demand for meat, the board| is now discussing with thel 'exporters and the shipping companies ways to achieve a better spread of lamb shipments to Britain in the near future.” said Mr Hilgendorf. The board's decision was based on a thorough appraisal of all the factors in-, volved. “There would not appear to be a case tor the board to intervene at this time in the: market on the ground that it; considered the schedule to! be too low in relation to anI ticipated realisation,” he .said. While the lamb schedule had dropped particularly in recent weeks, Mr Hilgendorf' said, it must be remembered that it opened at a high, level, and the present schedule was still significantly! above the average for the 1972-73 season. “When account is taken of the continuation of satisfactory wool prices and quite reasonable returns for beef and mutton, there is not, in

He reported to the hoard on his discussions In London last week with the British meat trade on the depressed state of the U.K. market for New Zealand lamb. "The board is, of course, keeping a close watch on market trends, and could reverse this decision if it conlidered such action warranted,” Mr Hilgendorf said n a statement. Mr Hilgendorf said it was Very clear from his dis-' cussions with all sections of' the British trade that the United Kingdom market was, over-supplied, not only with lamb but with other meat, especially beef. "What is not so clear is how long this situation will continue, but it could be tome time before it improves. "On the assumption that the economic situation ini Britain will improve, and bring with it a recovery in

(the board’s view, justification for its inter- i 'vention with direct financial assistance to the producer.” said Mr Hilgendorf. The position today contrasted markedly with that of 1971. when exporters offered a very low opening lamb schedule at a time when wool prices were also depressed. , “While the Meat Industry Reserve Account may appear to stand at a high level, it pnow represents only a small proportion of the value of one season’s meat exports, and should therefore be kept ,!for the day when the industry faces a real emergency.”