LOWER PRICES?

Evening Post, Volume CXL, Issue 152, 26 December 1945, Page 4

LOWER PRICES?

OVERSEAS MARKETS

UNCERTAINTY OF FUTURE

Uncertainty as to the future of New Zealand produce in competition on the British market was expressed by Mr. J. T. Martin, chairman of directors of Abraham and Williams, Limited, in his address to the annual meeting of shareholders. He urged the exploitation of other outlets, notably markets in America and the East. He said it was fortunate that the present high level of prices for primary produce would continue to 1946. but after that would come an all-round recession.

New Zealand had been lulled into a false sense of security by the knowledge that Great Britain would accept all it could produce till 1948, and had not considered carefully the conditions attaching to the contract, one of which was that prices come under review in 1946. At the end of next year there might be a complete change in the World's markets due to the strong world-wide urge to break down taritt barriers and tne pressure from the U S.A. to induce Britain to cancel the Ottawa Agreement, at present giving New Zealand a protection over foreign countries of £15 a ton on butter, 15 pel' cent, ad valorem on cheese, £6 a ton on tinned milk, and a very favourable quota for lamb and mutton. TRADE BARRIERS GOING? "The Hot Springs conference of United Nations agreed to reduce barriers of every kind in international trade* and to eliminate all forms of discriminatory restrictions, including inequitable policies in international transportation as effectively and rapidly as possible, so it is incumbent on us to march with the times," said Mr. "Atn"the latter end of 1946, # when prices are being revised, is it not likely," he said, "that Europe will then be recovering from her war effects and Britain facing the possibility of resumption of pre-war dairy imports from Europe? . . . The terrific financial strain Great Britain is now under-_ going may compel her, in sheer de* speration, to make concessions to many countries on which she is relying to absorb larger proportions of her manufactured goods than we can with our limited population. "Every penny drop on meat,.butter cheese, and wool means £6,250,000 loss to our farmers, and we will be lucky if it is not more than twopence drop all round. "The negotiations over prices will be in the hands of the British and New Zealand Governments and, as we nave no bargaining powers, no other markets to which we can refer, no othei country to turn to for an alternative outlet, "we will be reluctantly compelled to submit to whatever prices or quotas Britain decides to impose. "True, we have always had to accept Britain's prices, but under a totally different set of conditions. Alternative markets, therefore, should seriously engage the attention of the dany and melt boards, which are today the custodians of the farmers' produce. SHIPPING TO FAR EAST. Mr Martin then examined the prospects' for development of markets for New Zealand produce 3n America and the East. Most of the Eastern trade in commodities which we produced had been captured by Australia, he said. Australia was well served with shipping for the trade with the East, snd had cool storage in several Eastern ports. He said he believed New Zealand should have a financial interest in any pew shipping company established to develop trade with the East. ... ~ "Summing up the whole position, it is plainly evident," he said, that, if this Dominion waits till the 1948 season before exploiting other outlets, we may place ourselves in a very unenviable position, and I therefore make the following suggestions to farmers organisations:— "1. That the New Zealand Government negotiates a reciprocal agreement with the United States of America. . "2 That representatives ba sent to British India, Dutch East Indies, China, and the East. . ~ "3 That, during the price negotiations with Britain in 1946, arrangements be made for retention of such supplies as will enable the Dominion to exploit other markets. "4 That shipping possibilities be explored with the object of securing a direct service which will replace the former Japanese and Dutch steamers.