RICH DOLLAR SOURCE

Otago Daily Times, Issue 27390, 16 May 1950, Page 5

RICH DOLLAR SOURCE

Lamb From New Zealand HIGH PRICE OBTAINABLE PA AUCKLAND, May 22. New Zealand meat producers could earn about 7,750,000 dollars for the dollar pool from the sale of 10,000 tons of lamb to the United States if the 3 per cent. “ tolerance arrangement” provided in the dairy produce contract with Britain extended to meat. The contract price obtainable from America would be at least two and a-half times that paid under the present contract with the United Kingdom. A representative of an Auckland meat exporting company, who expressed this opinion today, explained that the 3 per cent, quota was for the development of new markets in any part of the world. Sales of dairy produce to the Philippines had proved the advantage of making such an arrangement. Inquiries were being received in Auckland for New Zealand butter from £9O to £IOO sterling a ton higher than the contract price with the United Kingdom, he added. ' Exporters estimated a lamb yield based on 2s 6d a lb, but this could reasonably be expected to be higher. Lamb sold in the United States at Easter brought 7s a lb. A trial shipment of 100 carcasses of lamb averaging 351 b from Australia recently averaged 40 cents a lb in the United States. The chance to develop a market in the United States had never been better, as lamb was one of the scarcest meats in the country. However, he said, the whole scheme depended on whether Britain would agree to the sale of 10,000 tons of lamb through the provision of a tolerance agreement. New Zealand killings of frozen meat for export were usually about 350.000 tons, of which 170,000 tons were lamb.

Mr S. C. Sutherland, chairman and managing director of Wright, Stephenson and Co., Ltd., said in London this month that meat was in over-supply in Britain and the ration was not being fully taken through lack of purchasing power.