New lamb sales era forecast

Press, 23 July 1980, Page 3

New lamb sales era forecast

Wellington reporter “Voluntary'” restraint byNew Zealand to limit lamb sales to the E.E.C. to 234,000 tonnes, was predicted by the Dominion president of Federated Farmers (Mr A. F. Wright) in his report to the federation’s annual conference. Mr Wright, from Sheffield, was re-elected unopposed for a fourth term as president. The probable conclusion of an agreement with the E.E.C. would herald a new era in lamb marketing, he said.

New Zealand would sei! about 90 per cent of its lamb exports on four markets: 234,000 tonnes to Europe, 64,000 tonnes to Iran, 25,000 tonnes- to North America, and 10,000 tonnes to Japan. North America and Iran had a “single-seller operation,” Mr Wright said. In other main markets, too, New Zealand was, or could be, faced with either a buying monopoly or a relatively small number of traders. “We should examine carefully whether our marketing system of many exporters being faced by a small number of buyers, who could effectively play our exporters off against one another, is still the most appropriate,” he said.

All the meat industry — the Meat Board, the Meat Exporters’ Council, and the federation — should jointly discuss the present marketing systems and whether they should be modified to cope effectively. Mr Wright said he had written to the British Prime Minister (Mrs Margaret Thatcher) of his appreciation for the efforts she personally, and her Government, were

making on behalf of New Zealand farmers. “The interests of New Zealand have been verymuch in my mind in recent weeks,” Mrs Thatcher replied. “Arrangements will only come into operation if and when New Zealand reaches a voluntary agreement with the E.E.C. which fully safeguards her trading interests. “Such an agreement would involve the continuation of sendings to the E.E.C. at traditional levels, and a cut in the import duty of benefit to both New Zealand producers and United Kingdom consumers.” Mrs Thatcher said. Mr Wright said Britain still had a lot of resolve, and New Zealand still had to see what would result from the inclusion of Spain and Greece in the E.E.C.

He was very optimistic that New Zealand would retain very strong links with Europe for its traditional products. If New Zealand could continue to sell the bulk of its butter and lamb to Europe, and if the E.E.C. did modify substantially its system of export restitutions, then New Zealand could find markets for increased production of lamb and dairy produce.