Cartel ‘stunted growth of cattle industry’

Press, 15 April 1986, Page 22

Cartel ‘stunted growth of cattle industry’

By

David Porter

NZPA staff correspondent Hong Kong

A Marcos Government cartel, which restricted imports of New Zealand and Australian meat and livestock, was corrupt and had stunted the growth of the Philippines cattle industry, said the new Agriculture Minister, Ramon Mitra, in Manila.

The new Government of President Aquino will repeal decrees setting up the monopoly and will investigate reports that it generated hidden wealth for the deposed President Marcos and his associates, he said.

"(The cartel) will not be there anymore and we look forward to better days for the industry and the relationship between our two countries,” Mr Mitra told NZPA. A New Zealand trade commissioner, Mr John Waugh, said he expected New Zealand would now see meat exports returning to S3M to S4M, the level of two to three years ago.

Although press reports in Manila have referred to the meat cartel as "secret” and its workings "shrouded in mystery,” New Zealand officials have long been aware of the role played by the cartel and its restricting effect on Australasian exports.

The Minister of Overseas Trade, Mr Moore, took up the issue

during his visit to Hong Kong in March, 1985, when he met the former Agriculture Minister, Mr Salvadore Escudero. Still to be ascertained are the total amounts of Filipino Government money infused in the cartel and its earnings. New Zealand has, exported 1600 cows to the Philippines under a scheme over the last two years. A further and final shipment of 800 cows under the scheme, for dairy development, plus a further 300 under another project, were expected to be shipped. In the future Philippines meat and livestock importers could come to free trading agreements with any exporters in Australasia they pleased, said Mr Mitra.

“We will probably control the volume but as to who and what they import, it’s a free market,” he said.

“The monopoly has stunted the growth of our industry and we have failed to be able to secure breeding stock.”

“We’ve not been able to generate the interest among cattle people in New Zealand and Australia because of the restraints. Now we’re inviting people to come and invest in cattle here. It’s free enterprise and we think we can benefit a lot from the technology in New Zealand.”