U.S. beef needs uncertain

Press, Volume CXV, Issue 33987, 30 October 1975, Page 2

U.S. beef needs uncertain

tKZ.P Stay COTrerponaenu WASHINGTON. October 29. Time is running out for New Zealand as it presses its case with the United States for a second extra allocation of beef imports this year. ' It is understood that New i Zealand trade officials in ! Washington are urging the I State Department to make a (decision by the end of this ! If the department approves extra shipments later than I that New Zealand will have ■extreme difficulty in orpanis--1 ing entry of the meat before the end of the vear as is ■ necessary. • It is now not even certain there will be another reallo- ' cation. Eight weeks ago New Zealand was given authority to

send 9.7 m lb of beef to the United States above its 1975 quota of 252.8 m lb under the voluntary restraint agreement.

New Zealand, Australia, and Costa Rica were told they could send an additional volume because of a 35m lb shortfall in supplies from other producers, mainly the Irish Republic and Mexico.

At the time the shortfall reallocation was termed '‘interim.” and it was confidently expected that the total eventual shortfall could go as high as 100 m Tb. As recently as two weeks ago New Zealand officials were still tipoing that New Zealand and Australia would get a further reallocation. But now a note of pessimism is evident. New Zealand sources say the situation is "insecure and uncertain.” New Zealand’s representatives in Washington are

lobbying the State Department intensely and arguing that there will be a shortfall.

But the department apparently is not conviced there will be a shortfall of anything like the proportions expected earlier. As a result of a recent E.E.C. move which raised beef export subsidies to nonE.E.C. markets and an upward trend in United States prices, the United States market is more attractive to the Irish Republic, and it is reported to have begun offering beef for sale. Up to now Ireland has sent only about Im !b of its 1975 entitlement of 38m lb. Centra! American exportiers. Mexico in particular, are beginning to ship more beef to the United States than expected. apparently because of the better price. The meat trade is uncertain as to just how much beef

Mexico and Ireland will ship and so is the State Department, which has the final word on import levels. The department, according to informed sources, is watching the situation closely, but is delaying a final decision because it is not clear what the extent of the shortfall, if any, will be. It is not anxious to declare a shortfall and then discover that nations such as Ireand and Mexico still plan to ship their entitlements. If the department estimated a final shortfall of only a few million pounds New Zealand officials fear it might be ■written off as "not worth worrying about” in terms of total permitted imports of 1180 m lb. American cattlemen, who disapproved of the earlier rel allocations, would not be un- ■ happv if this action were [taken.