Meat export plan unsettles Japan

Press, 12 October 1985, Page 18

Meat export plan unsettles Japan

By

ALAN GOODALL,

of New Zealand Japan News in Tokyo

New Zealand Government moves to deregulate meat exports are sending tremors through a lamb sales drive in Japan, till now New Zealand’s best hojpe for boosting the (100-million-plus Japanese sheepmeat market Success in the campaign, which was started here only six months ago, has been thrown into grave doubt by Wellington reports that the market will be returned to private traders. The campaign’s Tokyo director, Graeme Harrison, warned against a “retrograde” return to open marketing. Reversal to private trading that had failed New Zealand fanners and the national economy could prove disastrous, he said. Tokyo traders disagree. Some have instructed New Zealand agents to find out how soon the Government will let decontrolled shipments back into the marketplace. It remains unclear how many of the 38 shippers who were squeezed out of importing by the Meat Board’s marketing controls will return to the trade, or what enthusiasm they will bring. Tokyo and Osaka meat traders

have been alerted, but retailers are annoyed by reports of yet another change in the marketing system. The North Asian headquarters of Anzco and Janmark, the bodies set up to direct mutton and lamb marketing in the world’s most promising sales region, is being kept busy answering inquiries. The office, close to the Diet (Parliament) Building, wears a Japanese face to please the local trade. Only two of the 32 staff — Mr Harrison and the liaison manager, Ken Botherway - are New Zealanders. Already the largest mutton outlet, Japan is targeted as the best potential for the depressed lamb industry. A chilled lamb sales push that began in earnest in June looks like clearing (2.5 million this year, though Mr Harrison admits that New Zealand is about three years behind Australia in the chilled trade. Chilled lamb sales could well hit (10 million next year, depending on the stability of the Janmark campaign now getting into stride. Mr Harrison — he is president of Janmark and Anzco as well as

being the Meat Board’s Asian director Mis the shock absorber between -Wellington deregulators and Tokyo traders. Reports circulating here say New Zealand exporter access to this market will be progressively restored as the Meat Board is restructured and the Government takes over its (700 million debt In the absence of any firm directive, the Tokyo office can tell callers‘only that the Minister of Agriculture, Mr Moyle, has said the board should have “no advantage qr disadvantage” compared with any other company. Japanese observers take Mr Moyle’s statement that farm cooperatives should form a strong marketing body with the board to mean further changes ahead, For’ Janmark, a body jointly owned by the board and three packers (Top Trading NZ, C. S. Steveps and Co., and Waitaki NZR), Mr Harrison warned against any retrograde step that would breakdown goodwill earned by the still-young sales drive. He! said New Zealand farmers’ investment in developing a chilled lamb market in spite of Japanese consumer apathy ought not be are starting to penetrate the most expensive and difficult

market in the world, one well worth the effort,” he said. ' “Japan is not a free market in terms of institutional barriers (though there is no duty or quota for sheepmeat). What New Zealand is starting to achieve is adapting to the. peculiarities of an extremely fragile market.” ; Mr Harrison questioned whether the 38 importers who operated under the pre-1984 conditions would keep up the drive started under the controlled marketing system. “The costs and risks involved make Japan a market for our coordinated effort,” he said. At stake is the growth of a market worth more than (100 million a year and offering the best world prospects in a depressed sheepmeat market Japan took 33,260 tonnes of mutton in the 12 months to June, this year, up 15 per cent on a year earlier, ana 18,681 tonnes of lamb, up 7 per cent; This is in strong contrast to a 26 per cent drop in New Zealand mutton exports worldwide and 23 per cent fall in lamb. New Zealand’s gain is Australia’s loss. Australia’s mutton shipments to Japan fell by 21 per cent and lamb by 2.6 per cent

The Australian Meat and stock Corporation complains in its latest “In Brief 1 monthly bulletin IB marked policy — the establishment or Anzco and Janmark — New Zealand has succeeded in eroding Australia’s share of the Japanese market” The attitude of the Australian board, which lacks the New Zealand board’s marketing powers, comes out strongly. “The presence ’of Anzco and Janmark is not well favoured by-, the trade in Japan,” it says. “Thet objection is that New Zealand 1s t securing a monopoly position. - .“Importers argue they-are un-' able to fully undertake importer. operations and functions in both the Japanese and New Zealand markets.” ; ; ’ *• Australian envy may soon turn 7 to mirth. The strength of Anzco; and Janmark is now in doubt The Tokyo trade is talking of New?* Zealand putting itself back to,’ Australian methods.' • Tokyo customers persuaded to , stock New Zealand chilled lamb as; part of the new sales driveare; already asking: “Are they going to ■ change again? Should we risk it or stock another food line?”