TRADE WITH CEYLON

Otago Daily Times, Issue 22366, 13 September 1934, Page 2

TRADE WITH CEYLON

ROOM FOR EXPANSION SHIPPING FACILITIES REQUIRED The opinion that there is room for a considerable expansion of New Zealand's trade with Ceylon was expressed yesterday by Alajor J. W. Oldfield, who has arrived in Dunedin in the course of a campaign in the interests ot the tea growers of Ceylon, India, and the West Indies. Alajor Oldfield is a member of the Ceylon Tea Propaganda Board and has had wide legislative experience as a member of the Government of the island.

“ The balance of trade between New Zealand and Ceylon is at present so ludicrous that it is hardly worth referring to as a balance,” he Stated, “but there are possibilities of a very good market in Ceylon for produce from this Dominion, for, in addition to the limited European population of the island there arc many thousands of the indigenous population who live in the European manner and who could provide a market worth many thousands of pounds annually for milk in powder form, butter, frozen meat, and fruit. Shipping facilities are the main difficulty to be overcome.”

He added that be had had a talk with the Minister of Industries and Commerce (Air R. AlastCrs) on the possibilities of further developing becipfocal trade between New Zealand and Ceylon. Tea is the chief commodity imported by New Zealand from Ceylon, and tbou, a good way behind, comes desiccated coconut. In 1081 this Dominion imported produce from the island worth £(517,000, as compared with only £SOOO worth of produce (chiefly butter and dried milk) sent from New Zealand to Ceylon; in 1932 the figure was £351,000. compared with £3500; and in 1933 it was £442,000, compared with £2600. So it would bo seen, said Alajor Oldfield, that there was not much of a “ balance of trade ” between the two countries. The drop in the figure for 1932 was due to a drop in the price of tea and not to decreased consumption in New Zealand, while the figure for 1933 showed the effect of an increase in value. The drop in the amount of butter sent from New Zealand to Ceylon in 1932 and 1933 was not caused by any decrease in quality, but because Ceylon had largely switched over to Australia, and that was mainly as a result of the better shipping facilities offered by the Commonwealth. “The Australians have the advantage of excellent shipping facilities, which you have not got here,” he said. . “ There is a good market in Ceylon for New Zealand products, but at the moment it

is almost monopolised by Australia. There is also a very big market in India for New Zealand produce; and it would bo well worth while for New Zealand exporters to explore further the great possibilities offering in the Middle Hast generally—that is, India, Ceylon, and the Malay States. “ It has been found that New Zealand mutton can be imported into Ceylon to compete favourably with the locallygrown goat meat, and several tea estates are tow providing frozen meat for their labourers. There is no doubt that other produce could get in if there were better shipping.” Referring to his conversation with Mr Masters, Major Oldfield said that there might be some hope for assistance in trying to improve shipping facilities. If the exporters could get together it would probably be worth while chartering for direct shipments to Ceylon two or three times a year.