Petrol-for-agricultural products deal urged

Press, 19 June 1979, Page 3

Petrol-for-agricultural products deal urged

PA Wellington A greater effort should be made to expand agricultural markets in the Middle East because of higher oil prices, according to a Lincoln College study. The study, by the college’s agricultural Economies Re- . search Unit predicts Deteri- , orating agricultural marketing and market access problems for New Zealand. This was because most of the countries importing New ' Zealand’s traditional farm ; exports did not have exten- . sive oil reserves. ‘‘This suggests that even

greater efforts should be made than at present in market development in the Middle East and other oilrich States,” the report said. Countries such as Argentina, which had a tremendous potential for competing with New Zealand in wool, me it, and dairy products, could benefit from rising oil prices.

This was because the transport system used to carry New Zealand’s agricultural exports was energyintensive, and Argentina was closer to North America and Europe.

“What may be gained in

lower energy inputs in production may be lost in the current energy-intensive transport system used to transfer New Zealand’s products overseas,” the report said.

On-farm energy inputs to New Zealand agriculture accounted for less than 20 per cent of the total energy input required to get the produce to the household table.

“Increased processing of New Zealand’s primary products should lower over-all transport costs, although opposition from shipping companies may exist,” the report said.