The Daily News SATURDAY, SEPTEMBER 2, 1933. OUTLOOK FOR EXPORTS

Taranaki Daily News, 2 September 1933, Page 6

The Daily News

SATURDAY, SEPTEMBER 2, 1933. OUTLOOK FOR EXPORTS

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The discussion at the annual meeting of the New Zealand Meat Producers* Board and the issue of the report of the Dairy Produce Board for the season which has just closed contained between them an interesting review of the experiences of two of the most important export industries of the Dominion. Both of them share in certain characteristics, to some extent they are interwoven in the farm husbandry of New Zealand, they supply the same market, and they have found it possible to join forces in arrangements for shipping. Unfortunately both industries share a new difficulty —the possibility of a restricted market in Great Britain for their outputs. Apart from marketing, arrangements and problems the meat industry’s year was uneventful except for an industrial dispute that held up operations for some weeks and might, but for the exercise of the Meat Board’s powers of controlling shipments, have led to a glut in the market when the strike was called off. Regulation of exports appears to have prevented that condition arising, and the machinery worked smoothly for the rest of the season. Quantity and quality of output were well maintained, and a successful shipment to London of chilled beef was made. Criticism was made of the freights under the new shipping contract and of the charges for cold storage in Great Britain, but the board was able to show that it had done its best to keep these costs as low as possible. Incidentally the discussion revealed that the high exchange rate has had other than beneficial effects upon primary production. Freight charges last year totalled and to this it is estimated there must be added for the coming year an additional cost of £305,000 to meet exchange. The Dairy Board’s report is by no means exhilarating. Output was increased and quality improved, but prices were lower than they have been for a generation. One Minister, the Hon. A. Hamilton, estimated the position as being “costs of production 25 per cent, up, and prices received 25 per cent, down” as compared with prewar years. It is a position only too well known , and recognised in Taranaki, though there are signs that it may improve in the coming season. The acceptance by the dairy industry of the new regulations is proof of its determination to stimulate demand by keeping up quality. That is solid backing for any forward movement; without it the supplementary effort, a campaign of wisely directed publicity, would be in vain. But the greatest hope of the New Zealand exporter lies in the improvement of conditions in Great Britain which is slowly arriving. With employment offering more freely demand for Empire-grown foodstuffs will increase, provided their quality is high and their prices not unreasonable. Both meat and dairy boards are confronted with the difficulty of reducing costs of production. The revision of the tariff is held to be vital to such reduction, and is a matter into which a Commission of experts is now inquiring. Both industries are doing their best to seek fresh markets for New Zealand produce, unfortunately not with any marked success. Nevertheless, there should be no slackening of effort in this direction, and possibly the nego-

tiations with Japan in regard to trade said to be in contemplation may open the way for increased exports to that country. The new difficulty confronting the two industries is, of course, the possibility of a restricted market in Great Britain. The meat industry has accepted restriction since last November in regard to mutton and lamb, and, more recently,, in regard to frozen beef and baconer pigs. Hitherto the effect of the limitation has not been felt seriously. A good autumn made holding of flocks possible, and the higher prices obtained for the meat shipped were some compensation for the smaller number of sheep and lambs sent to the freezing works. Now restriction extends to beef and baconers, and the result must be left for experience to determine, especially as the possibility of shipping chilled beef has introduced a new element into the meat-export trade. The dairy industry is still opposing with all its strength any restriction by Great Britain of its output. The Dairy Board’s report shows how vigorous have been the protests made by the leaders of the industry. They have had the effect of bringing a farmers’ delegate from Great Britain to discuss in New Zealand the difficulties confronting the dairy industry in both countries, and there the matter rests in the meantime. For meat and dairy exports the policy of keeping costs within bounds and improving quality remains sound, whatever may be the ultimate solution of the many problems surrounding the marketing of their outputs.