THE BRITISH MARKET

Evening Post, Volume CXIX, Issue 126, 30 May 1935, Page 9

THE BRITISH MARKET

AUSTRALIA V. DOMINION

BIGGER SHARE ISSUE

(Supplied and Released by the New Zealand Government.) LONDON, May 29. The New Zealand delegation is still concentrating all its energies towards retaining the Dominion's United Kingdom market for mutton and lamb, and has not yet reached an agreement with the, Australians, who are seeking a greater share of the market which New Zealand has built up over a number of years. New Zealand contended that the Ottawa year should be the basis of future supplies of mutton and lamb on the United Kingdom market. In that year Australia landed 1,489,407. cwt. on. the United Kingdom market, and New Zealand 3,908,054cwt. New Zealand's proposal was that each country should be allowed a 5 per cent increase on those figures, the respective proportions for the two countries being 27.6 per cent, and 72.4 per cent. AUSTRALIA WANTS PEAK YEAR. Australia, on the other hand, desires to depart from the Ottawa quantities and take as a basis the 1934 shipments which were 1,627,885 cwt. for the Commonwealth, and 3,554,511 cwt lor the Dominion, the proportions being 31.4 per cent, and 68.6 per cent, respectively. New Zealand has replied that it would be unfair to take the Australian peak year and a low year for- New Zealand, especially as the Ottawa formula was based on the then peak years for both countries. Furthermore, the New Zealand representatives contend that grading should be taken into consideration. New Zealand ships first- and secondgrade only of mutton and lamb, the proportions being: First-grade, from 65 to 70 per cent.; second-grade, 35 to 30 per cent. On the other hand, Australia has only 15 ,to 20 per cent, firstgrade, which is at present bringing ljd less than the New Zealand product, and the remainder second- and thirdgrade. If New Zealand adopted comparable grades her volume of exports would be considerably greater, but at the same time she would receive lower prices and depress the market generally. BRITISH SUGGESTION. English officials suggested as a compromise that the countries should base the proportions on the respective peak years—namely, 1934 for Australia and 1932 for New Zealand. In that case the percentage would be 29.4 and 70.6. After further discussion, the New Zealand delegates accepted this proposal so long as shipments are spread over the period of the agreement by both countries and Australia adopted a system of control and grading. It was felt that if such an agreement ran for 18 months a meat council would be then set up. The new organisation could investigate the market and recommend the quantities of the various classes of meat to be sent by the different countries of supply. Australia still refused to shift from her original proposal, and after two further meetings the adjournment was taken to enable the parties to investigate further alternatives put forward by the British Minister of Agriculture Major Elliot.