THE PRESS SATURDAY, SEPTEMBER 6, 1980. Sheepmeat basket

Press, 6 September 1980, Page 14

THE PRESS SATURDAY, SEPTEMBER 6, 1980. Sheepmeat basket

Should New Zealand, out of prudence, set a limit on the amount of sheepmeat it sells to the Middle East? The question arises because the Middle East will buy 90,000 tonnes of sheepmeat this year out of a total of 360,00 Q tonnes exported. There are clear indications that some Middle East countries, particularly Iran and Saudi Arabia, would take more. While the principle that those who want to buy should be. encouraged to do so is sound, too great a reliance on a single market might make the country vulnerable to sudden changes. It has also-to be remembered that New Zealand once sold virtually all its agricultural produce to Britain. Today sheepmeat goes to more than 100 countries from New Zealand. The path to diversification of markets has not been easy. The lesson from the past should not be forgotten. If a limit has to be set, what should it be? A quarter of the exports of lamb does not seem too much for that market; after all, Britain takes more

than half. Probably New Zealand should go beyond a third only with considerable caution. One- of the risks is that the instability in- Iran might spread throughout the whole region of the Middle East. Yet the instability should be kept in perspective. As an importer, Iran has managed to keep functioning and payments, have been . forthcoming. There are reasons for considering Iran to be a reliable trading partner, whatever domestic disarray may prevail in that country. It might even be argued that the domestic disarray leaves the Government in Iran little option but to supply the basic foodstuff of sheepmeat to the Iranian people. Otherwise the problems there might become more menacing. Nevertheless, unpredictable features characterise the Middle East. At least .this, makes for a change from the agricultural protectionism to be encountered in some other markets. Although it is probably anyone’s guess as to the degree of reliance that can be safely put on any market, a measure of caution seems to be needed.