Aust, beef exports unexpectedly high

Press, 27 June 1983, Page 2

Aust, beef exports unexpectedly high

NZPA staff correspondent Washington The threat of quotas being clamped on beef exports to the United States has intensified with the revelation by Australia’s Minister of Primary Industry, Mr John Kerin, that Australia estimates it will ship 278,000 tonnes this year. This figure is higher than the 270,000 tonnes indicated by industry sources earlier this week, and is far higher than initial estimates near the start of that year. Mr Kerin, in Washington for talks with the United States Secretary of Agriculture, Mr John Block, and a trade representative, Mr Bill Brock, made it clear that Australia has no intention of cutting back shipments. Quotas can be applied in any quarter if the United States Department of Agriculture estimates that beef imports from all sources will exceed a trigger level, this year 558,382 tonnes, with shipments from each

country limited to historical levels. New Zealand, Australia and Canada agreed “voluntarily” to limit exports in the final quarter of last year — as an alternative to quotas — mainly because the drought in Australia resulted in extensive culling there with consequent heavy shipments to the United States. The industry initially believed there was little danger the trigger level would be reached this year because of the depletion of the Australian herd, and New Zealand exports to the United States have been running 42 per cent higher than last year, with 93,372 tonnes shipped between January 1 and June 10, including beef held over from last year. Recently, however, the Australians have discovered cattle on high ground that they thought had died in the drought, and their exports are not far below their traditional 52 per cent mar-

ket share. (New Zealand’s market share has historically been about 25 per cent.) Australia exported some 307,000 tonnes of beef to the United States last year, and if quotas are imposed their allocation is likely to be around that level, which means New Zealand would have to cut back hard, even though exports traditionally tail off in the second half of the year. The Australian embassy quoted Mr Kerin as telling Mr Block and Mr Brock “firmly” that Australia attached great significance to being able to export all the beef it expects to be in a position to supply this year. Prices, meanwhile, have fallen from a high of about 113 c a pound for bull beef and 110 c a pound for cow beef by some 5c or 6c.