PORK FOR AUSTRALIA.

New Zealand Herald, Volume LXVI, Issue 20363, 18 September 1929, Page 9

PORK FOR AUSTRALIA.

ALLEGATION OF "DUMPING."

NO GROUNDS FOR COMPLAINT.

LIMITED DEMAND BY CURERS

The request of the Australian Primary Producers' Union for a prohibitive duty against New Zealand ham and bacon is a striking illustration of tho tendency in that country, as well as in Canada and elsewhere, for small groups to attempt to influence tariffs for their special benefit ' If the' spokesman of the Producers' Union has been correctly reported his facts are wrong, because the export of bacon and cured hams from. New Zealand to Australia is strictly limited by a duty of twopence per lb. The figures for the last three years arc as follows: —

Bncon. llama. Total. 1920 . . £231 £24,073 £21,904 1927 .. 1,117 19,458 20,575 1923 . . 1,559 21.290 22,849

It is obvious that such a small trade could have no influence upon local prices in a country tho size, of Australia. What the Producers' Union probably desires is a prohibitive tariff against all forms of pig flesh, notably frozen pork. Tho trade in frozen pork, which is practically confined to legs for curing purposes, has certainly grown in spite of a duty of 10 per cent., the Figures for the last three years being:— '1920. 1927. 1928. Frozen pork ...ti1,910 £67,892 £54,763 An Exacting Market,

Now Zealand is charged with "dumping" surplus supplies in Australia. It is a ridiculous charge. "Dumping" means sending goods which aro unsaleable in the home market to a foreign market for sale at a low price to avoid lowering the homo price and to capture a new market if possiblo. Tho position in regard to pork exports to Australia is entirely tho reverse.

The Australian market for legs of pork, which are wanted for the manufacture of hams, is the most exacting the New Zealand meat trade knows. In the first place tho demand is seasonal. It sets in when the Australian curers are preparing for their huge Christmas trade, or when there is a local shortage, such as occurred some time' ago owing to an outbreak of swine fever. In the second place—and this is a clear answer to the "dumping" charge—the demand rs only for small, lean Jcgs. Orders are usually restricted to weights of from 121b. to.. 141b.—often tho lower figure with a margin of only lib.—and the supply of legs is severely limited in a country such as Now Zealand, where the average leg is heavier and a better article altogether. Tho English market, which prefers legs 141b. to 201b. in weight, is a much better one than that of Australia, because the larger leg that comes from the wellnourished pig is in greater quantity and because the Government pays a bonus of one halfpenny a pound on frozen pork exported to Europe.

Main Trade With Britain,

Compared with the export of frozen pork, which is mainly.legs for curing, to England, that to Australia is a mere bagatelle. The figures for the export trade to the United Kingdom during the last three years are;—

192 G. 1927. 1028. To United Kingdom £258.825 £283,393 £393,555

The present clamour against the importation by Australia of New Zealand pork and hams represents protection run mad. Possibly tho climate in certain districts is a handicap to pig-raising, but, on the other hand, the Australian fanner can buy cereal products, essential for the fattening and finishing of pig carcases, at a much lower figure than can the New Zealand farmer. Were it not for the cost of cereal foods the pig industry in New Zealand would be much more profitable. Only the climate is in tho New Zealand farmer's favour, and considering all things tho Australian,, with fhe 10 per cent, duty on frozen pork and 2d per lb. on bacon and hams, ought to be on a much better wicket in his own market. New Zealand Quality Better. However, the Australia pig-raisers cannot supply sufficient legs to provide hams, largely used in tho summer months, and through one causo or another the quality of tho hams is not up to the New Zealand standard. Repeatedly Australian visitors aro so pleased with tho bacon they samplo while staying afc Auckland hotels that they buy hams from local curers to take back with them. Nevertheless, the export to Australia is practically restricted to small lean legs which do not represent the best New Zealand quality, and tho bulk of tho surplus of tho best quality goes to tho United Kingdom, where, with the advantage of the bonus, it meets a better market. One of tho representatives of the Australian Primary Producers' Union affirmed that while New Zealand "dumped" pork into Australia it imposed a duty on pork double that of Australia. This is not so. Tho reciprocal tariff on Australian frozen meat of all kinds is 10 por cent., tho same rato as that charged by tho Commonwealth, and for bacon and hams it is 2d por lb. under British preference, again exactly the same rato as that imposed by the Commonwealth.

However, unless New Zealand suffered some devastating disease among pigs, there is not the slightest chance of Australia entering tho bacon and pork market here. Tho output of pork is far beyond the consumptive capacity of the population, and the surplus must bo exported. Tho bulk of that surplus for several years has gone to the United Kingdom, where, for tlia last twef years, tho trade has been profitable. Sense ol Proportion Lackicg.

It is a pity that the Australian producers do not preserve a senso of proportion in tariff matters. The same interests would bo very aggrieved if New Zealand, for one reason or another, placed a prohibitive duty on Australian raisins, a trade usually worth over £IOO,OOO a year, or 011 Australian oranges, a trade worth over £50,000 a year, or 011 Australian wheat, hor importation of which has been valued at over a quarter of a million for the last two years and more than half a million three years ago. For pollard alone Australia receives from New Zealand what Australia pays her for bacon and cured hams. For onions Australia receives half that amount, Now Zealand's payment to Australia for still wines is as great a sum as tho Commonwealth pays her for frozen pork. Australia buys annually over a quarter of a million pounds worth of white pine timber from New Zealand, but tho debt is practically discharged by New Zealand's purchases of Australian tobacco. Australia has no reason for complaint about her trade with New Zealand., Hor exports to New Zealand during 1928 were worth £3,868,231, of which £3,499,151 represented her own production or manufacture. In tho same year New Zealand's exports to Australia were valued at £3,402,655.