Meat processing too costly—Mr Begg

Press, 1 May 1984, Page 24

Meat processing too costly—Mr Begg

PA Hamilton Unless productivity in the meat industry is increased, the industry will cease to exist, says the chairman of the Meat Board, Mr Adam Begg. Speaking in Hamilton during his national tour, Mr Begg said the industry was becoming capital-intensive as well as labour-intensive. It could not sustain the high costs of putting in new technology, only to work it seven hours a day, five days a week. Overseas meat-processing plants worked every day except Christmas, for two or three shifts. Mr Begg suggested that some cutting rooms in New Zealand could work two shifts. “Unless we do something about cost, there will not be an adequate return for the producers,” he said. Supplementary minimum

i prices, shielded the farmer, ! and the price freeze did not , do enough to redress the > internal deficit with exterf nal earnings. i Changes were taking place but some companies i were not changing, Mr Begg said. Unless there was ; change, New Zealand would > “not be in the picture 10 years from now.” j He said the board was ’ considering -an advertising campaign to boost local ; consumption of beef and sheepmeats. But its powers ; might have to be amended ' first. > Legal opinions suggestedd [ that the board was not ; authorised to promote meat I within New Zealand, only on the export market. ; The board had discussed ! an advertising campaign i with the Meat Retailers’ : Federation, but it had been advised by some agencies to i keep out of advertising, Mr

Begg said. The board had not got its product right, it had been told. He thought that advertising could be used to counter “misinformation” about health factors concerning red meat and its nutritional qualities. Mr Begg also said that small shipments of live sheep, would enhance trade with Saudi Arabia. He supported the idea of limited shipments of live sheep to the Middle East. The economics were much better for sending the bulk of the live sheep from Australia because it was closer, but if there were no ban on live sheep exports from New Zealand, two or three shipments a year would be possible. “It would enhance our prospect for chilled and frozen sheepmeat,” he said.