MEAT INDUSTRY

Hokitika Guardian, 30 May 1935, Page 5

MEAT INDUSTRY

BRITISH MARKET

N.Z. DELEGATION’S EFFORTS

(Per favour of Government)

WELBFAGTON, May 29.

The New Zealand delegation in London is still concentrating all its energies towards retaining the Dominion’s United Kingdom market for mutton and lamb, and the delegation has not yet reached an agreement with the Australian delegation, who are seeking a greater share tof the market, which New Zealand has built up over a number ofi years. New Zealand has contended that the Ottawa year should be the basis of the future supplies of mutton and lamb on tli'e United Kingdom market. In that year Australia landed 1,489,507 cwts. mu the United Kingdom market, and New Zealand 3,908,054 cwls

New Zealand’s proposal was that each country should be allowed a pei cent increase on those figures, the gospective proportions for two countries then (being 27.6 per cent, for Australia and 72.4 per cent for New Zealand.

Australia, on the other hand, desires to depart from those Ottawa quantities and to take as the basis the 1934 shipments. which were 1,627,885 cwts, tor tht Commonwealth and 3,554,511 ewts for the Dominion, the pmprtions be* i H g 32.4 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 he taken into consideration, as New Zealand ships first and second grade onl in mutton and lamb, the proportions being : First grade, from 65 to 70 per cent,; and second grade 25 to 30 per cent. ()n the other hand, Australia has only 15 to 20 per cent of first grade, which is at present bringing a penny farthing per 11). less than the New Zealand product, and the remainder second and third grade. D New Zealand adopted comparable grades, her vlolume of exports would be considerably greater, but at the same time she would receive lower Prices, and depress the market generally.

' The English officials suggested, as a compromise, that the two count! ies should' base their proportions on their respective peak years, namely, 1934 boa Australia, and’l932 for New Zealand. In that case, the percentage would be 29.4- for Australia and 70 ■ 6 fHr e " Zealand. After further discussion, the New Zealand delegates accepted this proposal so long as the shipments were spread over a period of agreement b.V both countries, and Australia adopted a. system of control and grading. It was felt that if such agreement ran for 18 months, a meat, council would be then set up.' This new organisation ciotfld investigate the market., and could recommend what quantities of the various classes of meat were to be sent by the different countries of supply. Australia still refused to shift from her original proposal. After two further meetings, an anjnui’nment was taken to-day, to ename the parties to investigate a further alternative put forward by Mr W. Elliot.