BRITISH MARKET

New Zealand Herald, Volume 82, Issue 25288, 23 August 1945, Page 7

BRITISH MARKET

POST-WAR PROSPECTS RECIPROCAL TRADE VIEWS OF MR GOODFELLOW '(O-C.) HAMILTON, Wednesday "it is extremely unlikely that New Zealand will be unable to sell all her exportable primary products so long as she will accept manufactured goods in payment, 1 said Mr William Goodfellow, managing - director of Amalgamated Dairies, Ltd., in addressing the shareholders at the annual meeting of the New Zealand Co-operative Dairy Co., Ltd., at Hamilton today. Mr Goodfellow said that the present policy of the New Zealand Government was untair to Great Britain, our only substantial customer, and was also contrary to the terms of thq Ottawa and a subsequent agreement. It was also contrary to the spirit of the Atlantic Charter, and inevitably must, within a few years when food supplies again became plentiful, bring repercussions which would be felt severely by the whole community. "For any Government of a great foodexporting country like New Zealand to, prejudice the present and future real wealth of .the country for political expediency, is, in my humble opinion, a very serious state of affairs," he added. Suggested Contract There recently had been a suggestion of an extended long-period contract for the sale of the Dominion's produce to the United Kingdom, continued Mr Goodfellow. Such a policy at this time would be a very risky business and could not be too strongly condemned, especially when the value of sterling was in the melting-pot. The British war debt of over £25,000,000,000, plus current trade and war debts of over £3,000.000, justified the expectation that there would be considerable further inflation in the United Kingdom. During the war, said Mr Goodfellow, the people of the United Kingdom had become "packet-minded" in regard to food products and there was now scope for considerable expansion in this direction. Amalgamated Dairies had developed a packaging business in London for eg£ and milk powders, and during the current season some 13.000,000 tins were packed for the Ministry of Food for household use. The post-war surplus of milk powders in the United States was causing some concern, and in consequence no further factories in New Zealand were warranted at present, in spite of the immediate prospects of payable prices for the next year or two Imports from Europe Dairy produce imports from Europe into England were again coming forward, Mr Goodfellow said. Denmark had suffered very little war damage, and with cattlecake and fertilisers in normal supply she would soon recover her pre-war expert position. No other Continental supplies would be available this st^son. Dealing with the supply position of the United Kingdom for the uext few years, Mr Goodfellow said that it would appear probable that Canada and New Zealand would provide, without difficulty, all the cheese required. Butter, however, would be in short supply for several years, and would be imported mainly from New Zealand, Denmark, Australia and Argentina. It was just possible, however, that Europe, including Germany, might export some gutter to England next year, and use margarine for home consumption. If this were done, such butter would produce credits for the purchase of much-needed clothing and manufactured goods. Competition with Margarine

Mr Goodfellow expressed the opinion that sales of margarine were likely to 'expand all over Europe, and that it would take a big effort on the part of the butter-exporting countries to regain their pre-war markets. Regarding United Kingdom post-war food policy, he said that while food was in short supply New Zealand had nothing to fear, but when once supplies became normal, quotas on meats might be anticipated for the assistance of the home farmer. Cheese might also be regulated for the same purpose, hut there" did not seem to be any prospect of reBtrictions being placed on the importation of butter. Under _ its 1944-47 programme, the United Kingdom would aim to produce more milk, meats and vegetables, less grains, little or no butter, some cheese,, and evaporated and dried milk from town supply surplus. Markets Outside Britain Referring to markets other than the United Kingdom. Mr Goodfellow stated that immediate steps were being taken to promote dairy produce export business wherever there was any possibility of a market. India, now being a creditor nation, ottered good prospects. Later, China, with the assistance of American and British capital, would also be worth attention, and the Dutch East Indies market would be available until Holland built up her herds again. The Honolulu, Panama, and the West Indies markets were all small, but in the aggregate they were a useful alternative to the United Kingdom.* The enormous war expansion of agriculture in the United States would, unfortunately, "cause considerable internal difficulties there and might have repercussions abroad when production had to be reduced to local requirements.