Significant but small livestock export trade

Press, 18 February 1983, Page 25

Significant but small livestock export trade

Although small in national terms. New Zealand's livestock export industry has. made a significant contribution to export diversification, according to Ministry of Agriculture and Fisheries Assistant Director-General. Mr Mike Gould.. Mr Paul Baigent. Assistant to the M.A.F. director-gen-eral, presented a paper on the subject to the New Zealand Society of Animal Production's annual conference in Hamilton. The paper was written jointly by Mr Baigent and Mr Gould and considered the national economic significance of livestock exports. It was part of a special conference session on New Zealand's livestock export trade. Mr Baigent said although total export returns from livestock products were impressive in themselves, they had not made a significant contribution to total national export receipts. “In recent years the contribution has been about 0.5 per cent of total exports and less than 1 per cent of export receipts from primary products," he said. Considering exports of different livestock species, Mr Raipenf said that ahhotiph

I exports of dairy cattle had increased remarkably between 1975 and 1982 in percentage terms, current exports should not impose a strain on national supply of breeding stock. In this period exports had increased by 1200 percent to 18,000 stock units in-the year ending June 30, 1982. “It is recognised that this increased offtake may cause an upward pressure on prices for local breeding stock in localised areas. From the National viewpoint. however, the increased export earnings — $11.3 million in 1981-82 — are useful, albeit relatively small." Mr Baigent said exports of sheep had followed a similar pattern to those of dairy cattle. Starting from a low base, percentage increases between 1975 and 1982 (1700 per cent by number) had been very rapid. With 86,000 head exported in 1981-82 it was not considered that any strain was being placed on the national breeding flock to supply this number. Also, like dairy cattle exports, the return of $7 million to the country was welcome, but not a major contribution.

Exports of horses had also shown steady growth between 1975 and 1982. “Although not as spectacular in percentage terms (almost 180 per cent) as sheep or dairy cattle, the export earnings of about $3O million in 1981-82 are considerably higher and represent a more significant contribution to national income," he said. Mr Baigent said it was interesting to note that these earnings did not arise from a sector which had had any significant government input, either as research or direct assistance. Considering the possible effects on New Zealand's trade, Mr Baigent said much of the demand for New Zealand pastoral livestock came from developing countries, or industrialised countries wishing to upgrade their agricultural industry. He said consumption of animal products generally increased as economic development took place and per capita incomes rose. Promotion of local product also stimulated demand, often to the extent that imports were needed to supplement local production. “It can therefore be

argued that development ol a local industry can actually stimulate export demand for our livestock products. “Certainly there is no evidence to suggest that New Zealand's markets for pastoral products have been reduced as a result of development of a local industry. In any case, New Zealand does not hold a monopoly over the export of livestock and any reduction in supply from New Zealand would be quickly snapped up by other exporting countries.” Looking at the potential for New Zealand livestock exports, Mr Baigent said that over-all he would expect a steady but not spectacular growth in livestock exports. However, much would depend on the economic and political situation in the countries New Zealand presently supplies. “Because of this uncertainty we must continue to develop new markets," he said. “We do have quality stock with a growing international reputation and this, coupled with vigorous marketing should ensure that a measure of growth in the stock industry will continue.