“N.Z. facing long-term meat export problems”

Press, 10 April 1980, Page 23

“N.Z. facing long-term meat export problems”

PA Wellington -Import barriers in New Zealand’s major meat markets — the United States, Canada, and Britain — will create long term problems for this country’s meat industry, the Reserve Bank of New Zealand says in its latest bulletin. The Meat Import Act, passed last December in the United States — our biggest beef market — and the associated counter-cyclical factor require reduced im-| ports when Americanproduced beef is in plentiful supply. However, it will also mean that exports of New Zealand; beef to the United States will be restricted to a low level at a time when New Zealand production is at its greatest. In addition, it seemed likely that Canada would introduce a similar bill soon, and so extend the problems of the industry.

The Reserve Bank also noted the implications of the planned E.E.C. common sheapmeat regime, which is expected to be introduced this year. The regime would result in quotas being set for exports of New Zealand lamb to the United Kingdom. “In the longer term the introduction of restrictive legislation in some of the major importing countries will make the marketing of New Zealand meat increasingly difficult,” the bulletin' said.

In a review of the meat industry’s 1978/79 year the bulletin says that total New Zealand export meat production fell 1.5 per cent to 694,000 tonnes.

An increase in lamb (1.2 per cent) and mutton (5 per cent) exports was more than offset by a 7.7 per cent drop in export beef and veal production. Exports of New Zealand beef and veal to markets other than the

United States decline.l. In the face of a bleak outlook for sheepmeat exports to the United Kingdom — after the expected introduction of the E.E.C. sheepmeat regime, and an increase of domestic British supply — the New Zealand industry is expanding its non-traditional lamb and mutton markets.

Increased lamb shipments went to Iraq, the United States, and Japan, as well as to the United Kingdom last year. Japan displaced Iran as our second largest Idhib market, taking 18,200 tonnes compared with Britain’s 205,400 tonnes. The most dramatic increase was in sales to Iraq, which more than quadrupled to 13,100 tonnes. Iranian sales dwindled during the closure of ports during that country’s political upheavals.

The Soviet Union was New Zealand’s largest market for mutton, buying 54,226 tonnes compared with only 6171 tonnes the previous season. In the year to September, 1979, meat industry export receipts were 33 per cent higher than in the previous year, at $628.4 million.