THE OTAGO DAILY TIMES WEDNESDAY, MAY 17, 1950. DOLLARS FOR LAMB

Otago Daily Times, Issue 27391, 17 May 1950, Page 6

THE OTAGO DAILY TIMES WEDNESDAY, MAY 17, 1950. DOLLARS FOR LAMB

In a Press Association message from Auckland which we printed yesterday a representative of a meat exporting company was reported to have expressed the opinion that New Zealand could earn 7,750,000 dollars a year by the export of lamb to the United States if the 3 per cent, “tolerance” provided in the dairy produce contracts with the United Kingdom were extended to meat. There is undoubtedly a desire, which has been commented upon in this column, among many persons engaged in the sheep industry as producers and exporters to exploit the United States market for mutton and lamb. A demand exists there—especially on the Eastern seaboard where the Western prejudice against sheep does not exist—and it could be stimulated greatly by supplying both lamb and mutton of good quality. “Americans,” said a New Zealander who returned recently from a tour of the United States, “ simply have not the first idea what a succulent piece of lamb tastes like,” and his remark is true for the great majority of what is ,one of the largest meat-eating populations in the world. An experimental shipment of Australian lamb to the United States last year sold "readily at an average price of 40 cents a pound, an excessive price by New Zealand standards but considerably cheaper than the prevailing American prices for good cuts of beef.

Two obstacles would have to be i overcome, however, before any effort could be made to market New Zealand lamb in the United States. The first would be the opposition of the “ farm bloc ” in Congress, which would almost certainly resist any move which might tend to depress domestic meat prices. The second would be that of obtaining permission from the United Kingdom to retain a percentage of our lamb for export to other markets. When the current meat and dairy contracts were negotiated the dairy industry claimed the right to reserve 3 per cent, of its surpluses for the purpose of exploring new markets, but the United Kingdom, in return for its assurance of a stable market for seven years, requested that New Zealand would send all its exportable surpluses of/ meat (excluding .pigmeat) to Great Britain. In addition, New Zealand undertook to '.expand its exports of meat to Great "Britain “as much and as quickly as possible,” the target aimed at ‘being an additional 50,000 tons by ’1955. There were definite disadvantages in this somewhat rigid, bulk-buying contract, but it carried many benefits for the New Zealand producer. He received a higher price for his exports (thereby earning an extra £5,500,000 for New Zealand), he was guaranteed a market for seven years for everything he could produce, and he was given protection against any sudden fall in prices. Inviting though the American prospect might appear, nb diversion of meat exports can now be considered without the consent of the customer to whom he is bonded, and Great Britain might be reluctant to surrender 10,000 tons ’of the choicest meat that New Zealand supplies. It is possible that the subject will come up for discussion when the new season’s prices are being negotiated, but until the attitude of the British Government is made known, or the term of the contract with the United Kingdom has expired, it would be unwise to build up hopes on the prospect of an American market for meat.