NEW OUTLET FOR MEAT?

Southland Times, Issue 23794, 17 April 1939, Page 4

NEW OUTLET FOR MEAT?

AMERICAN MARKET POSSIBILITIES BRITAIN’S REDUCTION OF IMPORTS Mr A. C. Fisken, a member of the Australian Meat Board, recently gave an address on the possibility of new markets which has a direct interest to New Zealand producers. The speaker covered in detail the basis agreed upon under the Ottawa Agreement. Under that agreement not one carcass of lamb, pig or quarter of beef had been refused entry into Great Britain. The result of Ottawa, said Mr Fisken, particularly as regards mutton and lamb, had been achieved only after strenuous efforts and against growing opposition from British farmers. The speaker had repeatedly warned the Australian producer of the fact that the Commonwealth had nearly reached the stage where it would be asked to call a halt in its expansion. Force was added to this belief when Sir Reginald Dorman-Smith indicated quite clearly that the Dominion claim for an everexpanding share of the British market would be resisted to the uttermost. The trade delegation of Ministers last year also learnt that no extension of the Ottawa principle could be looked for. As regards meat there 'were two reasons for this policy. It was desired to stimulate Home production, to make Britain more self-supporting in case of war, and it was claimed in Britain that the disastrous fall in home-grown prices last year would not have occurred had imports been smaller. Mr Fisken said that Sir Reginald Dorman-Smith had persuaded the Sydney Primary Producers’ Conference to agree to a resolution advocating the, formation of commodity committees to regulate imports to Great Britain. The Meat Board agreed to co-operate in a meat commodity council on conditions. The main condition was that the board wanted an investigation made into the question of how far imported mutton and lamb affected the price of the home-grown product. The board had always maintained that the British product catered for the “luxury market,” and that if production was greater than this market could absorb, any surplus sold—and consequently the whole—must be sold at near imported prices. BRITISH PRODUCTION EXPANDING British production had been gradually expanding, and last year with a mild winter there was a splendid lambing. Also England experienced a very dry spring and early summer, and big quantities of lamb were forced on the market. The Commodity Council—known as the Empire Meat Council—met in January and the British representative asked Australia and New Zealand to agree to a 3 per cent, cut for 1939 on the 1938 figures. Foreign supplies were to be cut 10 per cent. It was indicated that Australia could not accept the principle of the 3 per cent, cut, as no investigation into the price situation had been made. It was also indicated that the supply position was such that Australia’s available exports were unlikely to exceed the amounts arrived at by making the 3 per cent. cut. There the matter stood for the moment. The British Government had the right to make the cut, and had made it. At the same time the Australian Meat Board had indicated that it could co-operate, through seasonal conditions, to keep the figure named, and the Meat Council had agreed to make the investigation desired. This was not a cut in the quota for there had been no quota since 1935. The whole question would come up for review next year. NEW MARKETS QUESTION Two difficulties faced the industry in attempting to find new markets. The first was that in the case of nearly every country trade treaty arrangements were the first steps that must be taken, and also up to date Britain had been such a good < price market that little desire had been shown by exporters to open up cheaper markets, even where such were available. If world appeasement could be achieved, the continent of Europe should again become a beef customer. Japan was also a potential purchaser. With the exception of the AngloSaxon countries, the world was not a great eater of mutton and lamb. Australia had a market to some extent in Canada, and this year, to the end of April, all refrigerated shipping space had been booked for mutton and lamb. Canada was only a seasonal market; in the summer she produced her own requirements; in the winter she would be a purchaser from Australia. It was to the United States that the Australian producer looked hopefully for an outlet. Negotiations were now being carried on for a trade treaty with that country, and the Australian Meat Board was keeping in close touch with the Federal Government on the question. If the American people could be persuaded to eat only lib of Australian lamb a head a year, it would give an outlet for over 4,000,000 lambs a year.