End to ‘disposal market’

Press, 31 March 1989, Page 16

End to ‘disposal market’

Sheepmeat production will probably over-correct well below market demand before it begins to recover, said the chairman of the Meat Industry Association, Sir David Scsttie He told the Meat and Wool Board’s Electoral Committee that export sheepmeat production could fall to below 350,000 tonnes, a situation which will make the term “disposal market” not just redundant but extinct. “Most of the trend lines in the market-place point upwards. The outlook for beef is especially bright. “On the sheepmeat side, stocks of New Zealand sheepmeat have been

cleared out of the supply pipe-line and the reduction in the number of primary importers in the United Kingdom from six a year ago to four now, has been achieved. No doubt further changes in marketing structures will be evolved.” Sir David said that the association and the Meat Producers’ Board had moved to strengthen the degree of consultation between the two groups. There was particularly close liaison on issues such as freight costs, grading matters and industry support for research.

In terms of industrywide structures, Sir David

said the believed the Australians with their Meat and Livestock Corporation had some useful ideas New Zealand could learn from. On the subject of industry restructuring and rationalisation, Sir David said that if the mistakes of the past were to be avoided the process of change must proceed in a thoroughly commercial manner. “It is in the boardrooms of the industry’s companies that decisions will be made. Farmers, through their board and through their company directors are having an input to those decisions,” he said.