MEAT PROSPECTS

Southland Times, Issue 22733, 8 November 1935, Page 6

MEAT PROSPECTS

BRIGHTER OUTLOOK BOARD CHAIRMAN’S REVIEW INCREASED EXPORTS Optimistic opinions of the prospects of the meat trade during the coming season were expressed by Mr T. A. Duncan, chairman of the New Zealand Meat Producers’ Board, in the course of an address to farmers and others interested in the industry in Invercargill yesterday afternoon. Mr Duncan returned recently from a visit to Great Britain, and in touring the South Island with Mr J. Fraser, general manager to the board, with the object of making personal contact with farmers and explaining to them the negotiations of the Meat Board and the New Zealand Government with the British Government which resulted in an agreement on the quantities of New Zealand lamb and mutton to be exported to Great Britain until the end of 1936. The meeting, which was well attended, was presided over by Mr G. Hamilton, chairman of the Southland Provincial Executive of the New Zealand Farmers’ Union, who introduced Mr Duncan. “Regarding prospects for the coming season I am very hopeful, firstly because I do not think Australia will be able to ship the large amount shipped last year, and secondly, because I have hopes that they will regulate their shipments and not rush large quantities on the market as they did at certain periods last year,” said Mr Duncan. “The regulation of their shipments on to the market is as necessary, as the regulation of ours if steady prices are to be maintained, and if Australia had paid more attention to regulation during the past year I am sure our prices would not have gone as low as they did.” Quality Appreciated. On the whole, New Zealand chilled beef was very well thought of by the retail trade in Great Britain, he continued, and its quality was appreciated. Given suitable cattle, regular shipping and seasonable costs, he had every hope that the Dominion’s beef trade could be lifted from its former very poor position. “I am definitely of the opinion that the British market cannot take unlimited and unregulated supplies of our meat without affecting the price, which would be a serious matter for New Zealand producers,” Mr Duncan said.

Mr Duncan traced the history of the recent negotiations in London. “On arrival in England we found the political atmosphere charged with levy discussions,” he said. “In other words the British Government was looking to collect levies from imported meat to subsidize its beef producers instead of continuing to raise taxation in Great Britain for that purpose, a burden of which British taxpayers were naturally getting tired. The first question was how were these levies to be applied in view of the trade agreements that existed between Great Britain and the Dominions and later between Great Britain and the Argentine. The British Government at this time proposed a levy on mutton and lamb as well as on beef, and this was one of our greatest difficulties in view of the fact that Australia had already agreed to a levy on mutton and lamb subject to certain conditions. Naturally as mutton and lamb comprised by far the biggest part of our total meat export, we opposed this tooth and nail, pointing out that beef was the British Government’s problem and that the position had been brought about by the very large South American shipments. Threat of Restrictions. “At that time the British Government seemed very determined and, failing our agreeing to a levy, threatened us with drastic restrictions in quantity. For us the position was very black, this being the only country standing out against this levy. After several weeks of stubborn fighting, the British Government, to our great relief agreed to separate mutton and lamb from beef, and decided that it would not ask for a levy on mutton and lamb in the meantime. This pushed mutton and lamb aside. Then the British Government asked us to confer with Australia and try to agree on a quantity allocation for mutton and lamb from each country within certain limits. The British Government had already decided that Argentina would still be kept at the 35 per cent, reduction agreed to at Ottawa. Australia and New Zealand were then the only countries concerned in the mutton and lamb discussions. I regret to say that it was impossible to come to any agreement with Australia, and after prolonged negotiations we had to go back to the British Government, and admit failure. Eventually, after beef had been discussed and held up pending a settlement between Great Britain and South America, which negotiations, I think, are still in progress, we had several more meetings with Australia and the British Government. Finally an agreement was reached on quantities until the end of 1936, which I think is very satisfactory to New Zealand. “The position is that we got away from the levy and, instead of the drastic cut in our exports with which we were threatened, we actually got an increase equivalent to 1,000,000 lambs.” Discussing the future prospects of the trade, Mr Duncan said that it was necessary that the Dominion should have the best men possible, those who understood the practical working of the meat trade, to represent it at any future negotiations. The British Government’s policy did not appear very clear, therefore Mr Duncan felt very pleased that New Zealand had an organization in the Meat Board, very ably handled by Mr Forsyth, its London manager, to watch its interests at that end. This organization was very highly thought of by the British Government, its officers and the meat trade in general, and New Zealand’s meat trade was the envy of every other country trading with Great Britain. Pork and Bacon. Turning to pork and bacon as it affected New Zealand, Mr Duncan said that these were not taken in the main discussions for the reason that the British Government was considering the whole position and until it came to a decision it would not discuss it as this affected many other countries besides New Zealand. “The quantities given us for both baconers and porkers I have every hope will be sufficient for our requirements until the end of the year,” he said. “I am not too hopeful that the future will allow us enough expansion in our porker trade as Mr Coates was told very definitely that Britain’s own pigs were increasing and it was intended to keep a larger portion of that market for Britain’s own pig producers. However, we shall hear shortly what our allocation for the period commencing January 1, 1936, will be and the board will do everything possible to get as wide an allocation as possible for both our porkers and baconers.” Exchange Questions. Mr Duncan indicated that he would answer questions, and he was asked immediately if he had seen anything to suggest that New Zealand had lost the goodwill of British manufacturers be-

cause of the exchange rate. “That is a little outside my line,” he replied, “but I was anxious to see if it had any detrimental effect on the sale of our meat. I can say definitely that it has not had any bearing whatever on this market.” He said he had 'discussed the exchange position with bankers and been told that “New Zealand’s position is just about right We don’t like it, but with the world in its present position, what can you do?” Mr S. Shaw asked the reason for the proposed restrictions. If the limit of Britain’s consumption had been reached, how was it possible to get an additional million lambs for the Dominion?

“It is not a question of consumption,” said Mr Duncan. “It is a question of price. It is the regulation of shipments that affects prices. The consumption of lamb in Great Britain has increased very considerably. Not very many years ago, only 6,000,000 lambs went in. Now that figure is up to 18,000,000. It seems that lamb is changing the tastes of the English people.” Mr Shaw: Then the trouble was not over-production, but under-consum?" tion.