Beef production

Press, 15 February 1982, Page 44

Beef production

The future for New Zealand's export beef market lies in developing new markets and reducing our reliance on the North American markets.

According to an industry spokesman there is no question that the United States is experiencing a recession and the flow-on effects have significantly depressed the beef market.

Unemployment, high interest rates and the drop in consumption have undoubtedly affected New Zealand's price for beef in North America.

According to the spokesman, the only thing that has assisted New Zealand has been the strength of the American dollar. Naturally, the strength of the American dollar increases the earning power of New Zealand. If this were not the case additional supplementary payments would have to be made.

Since 1975, supplementary payments have been made to the farmer to maintain beef production. In six out of seven of these years some form of supplementary payments have either been made by the Meat Board or the Government.

But the significant tall-off in beef has shown that in spite of these payments beef farming is still not an attractive preposition.

The beef production in the South Island is of a relatively small volume and. because of this, it has not been developed to the same degree of sophistication as in some North Island companies.

Up until 15 years ago, beef was mainly shipped in quarters. There were some trial shipments of chilled beef (mainly to the United Kingdom) and although these were acceptabie, the market did not take off in a big way. The principal market for New Zealand's export beef production. is the United States which takes between 83 and 85 per cent of boneless beef. Since the establishment of the American market 15 years ago. New Zealand processing works have converted to total boneless production.

The meat is packed in 27kg cartons and is used in America with a , blend of fatty meat for hamburger patties. New Zealand also has a whole series of smaller markets for frozen and chilled beef in the United Kingdom. Hong Kong, Singapore, Taiwan and Australia. Japan is a large importer of beef but unfortunately New Zealand can not compete with the price tenderer by Australia for this market. Despite the declining beef

market, and the probability that this will continue for some time, New Zealand is still able to find markets for their entire beef production.