EXPORT MEAT

Dominion, Volume 34, Issue 286, 30 August 1941, Page 10

EXPORT MEAT

Britain Will Try To * Lift 275,000 Tons THIRD YEAR OF WAR

Steady Improvement In Surplus Position

News that within the last few days the Prime Minister, Mr. Fraser, had intimated that in the third year of the war the United Kingdom Government would endeavour to lift 275,000 tons of New Zealand meat was' given by the Minister of Marketing, Mr. Barclay, when addressing delegates at the annual conference in Wellington yesterday of the New Zealand Meat Producers’ Board.

"AVe will end this second war year period, witli approximately twice as stuck meat in store as we had at the end of the first war year, but the position is by no means serious, and considering the immense difficulties which had to be faced during this year, the position must be considered satisfactory as a whole,” said the Minister, reviewing the storage position. "During the first year of the war. the amount of export meat which the United Kingdom Government were able to lift was extremely satisfactory, but as the war situation developed, tne perils facing our overseas vessels greatly increased, and almost at the start of the present season it was obvious that some restriction of export shipping was inevitable,” said Mr. Barclay. "Less than five months ago, the position looked very black indeed, and it appeared as if less than half our.exportable kill would be shipped overseas and that we might have from 180,000 lo 200,000 tons of meat in store at the end of this season. lam very pleased to be able to announce that, since that time, the position has steadily improved, and is continuing to improve. Our latest assessment shows that it is extremely unlikely that there will be in store on September 30, a quantity of export meat-in excess of 85,000 tons, which is a totally different figure to what many of us have feared and expected for the greater part of the season. • In view of this position, and in view also of the fact that further confirmation was received from London, the Government has instructed all freezing works that the ewe mutton now in store is to be shipped out in ratio to the total quantity of all types of meat in store. At the same time, full consideration was given to the representations that the board and delegates made to the Government at our last conference, and should the position at seme future time, become difficult, the suggestions made by the board will again receive consideration. Deboning and Trimming.

.‘•ln this connexion, it must be re•inembered that, apart from the improvement of shipping, the present satisfactory position is due in no small measure to the economies which have been introduced in the matter of deboning, trimming and canning, and which have so materially assisted in reducing the net amount of meat remaining for export. Though during the present year these economies have been fully exploited, I think that it may still be necessary and desirable to extend these practices in the coming year. In the mattter of canning, you can be assured that during this year the existing plant has been utilized to the fullest capacity, and that the contracts we have entered into with the United Kingdom Government will be completed within the stipulated period. “In relation to the coming year, the general framework within which we must adjust our exports to the United Kingdom has already been determined by the agreement recently entered into between the United Kingdom and New Zealand Governments, the details of which were fully publicized at the time. I think that it would be advantageous for me briefly to stress the salient features of this agreement, and their effect on the •onduct of our export meat industry.” Terms of Agreement.

By the terms of that agreement, the United Kingdom Government would not enter into a firm purchase for the third year of the war of a stipulated quantity of export meat, shipped or unshipped, added the Minister.' The arrangement provided that the United Kingdom Government would make every effort to lift the maximum quantity of export meat’ from New Zea-

land that was possible within the phyjh. sical limits of shipping and other conJ siderations, and only for the meat actually lifted would immediate payment be made to the New Zealand Government. In respect of the balance, a formula was provided whereby the United Kingdom and New Zealand Governments would take an equal share of the liability for a determined surplus which remained in store, at the end of the season. It had also been agreed between the two governments that the New Zealand Government would make every effort to reduce the net volume of exportable meat by the continuation, of the present economies and their further development if necessary, and at the same time would endeavour to exploit alternative markets for those classes of meat products required by the United Kingdom. Coming Year’s Programme.

“This is the general basis of the agreement, but within the past few days the New Zealand Government has been informed, by the Prime Minister of more specific details respecting this agreement as it applies to the coming year. The arrangements are by no means complete, but the Prime Minister has so far indicated that the quantity of meat the United Kingdom Government will endeavour to lift during the third year of the war is 275,000 tons, and that on the other hand it is expected of the New Zealand industry that every effort will be made to ensure that the net exportable surplus is not in excess of this figure. At the moment, it is not clear whether this figure of 275,000 tons is inclusive of canned meats. Present indications point this way, but we are awaiting further information and when it is cleared up, I will immediately comimunicate with the board. “I know that you will all naturally be anxious to have some indication from me as to what the intentions of the Government are in the purchase of export meat in the coming season. Because of the pressure of urgent work it has not yet been possible for the Acting-Prime Minister and myself to meet yoaur board and discuss proposals in detail, but this is our intention, and we will consult the board at the earliest opportunity to determine the policj’ and procedure which will be operative next year. Before discussions between the Government and your board start, we hoi»e to have rhe advantage of securing the first-hand information which the Prime Minister and the Director of Marketing will be able to bring back

with them after their personal discussions with the Ministers and officials directly concerned. I can say on behalf of the Government that the basis of our policy remains unchanged, and it is our intention to stand behind the industry and to ensure tliat the sacrifices which tlie industry may have to make are in equality as far as possible witli oilier sections of tlie community.

“In view of tlie necessity for greatly increasing our canning during the coming year to fulfil our undertaking to the United Kingdom Government tliat our net exportable surplus of meat will be reduced to a minimum, it is obvious that those classes of meat to be canned will have a market value very much lower than that now provided in the Marketing Department’s export schedules. In this connexion the Government, together with tlie New Zealand Meat Producers’ Board, may have to determine a procedure which will provide for the higher valued classes of meat making some contribution toward stabilizing the value of canning meat.”

FREEZING CHARGES Meat Board Urged To Seek Reduction Delegates constituting the electoral committee of the New Zealand Meat Producers’ Board adopted the following resolution at the annual meeting in Wellington yesterday:— “That this electoral committee is more than disturbed at the evidence disclosed by the audited accounts of the freezing companies and urges the board, in the interest of the producers, to insist both on an uplifting of the schedule prices for meat and a reduction of freezing charges for the coming season.''