EXPORT TRADE

Bay of Plenty Beacon, Volume 1, Issue 52, 21 August 1939, Page 7

EXPORT TRADE

CAN IT BE INCREASED FARMERS' UNION DISCUSSION The possibility of a considerable expansion in the export trade of the j Dominion was discussed at the monthly meeting of the Auckland Pro. vincial Executive of the Farmers Union recently. It was pointed out that New Zealand's exports of tinned milk are only about equal to thoso of Japan and Norway, whereas the Dominion with its specialised dair> production and its advantages of climate, and soil, should be able to lead the world in this trade. The difficulty lay in the high loca l cost of tinning, it was pointed out; and this applied not only to milk but to many othor products. This could be overcome, it was contended b\ 7 exporting condensed milk, butter, fruit and cheap grade meats in bulk and having them tinned for the retail trade in countries where cheap labour is available. There was no reason why the cheap labour of other countries should not be utilised in this way since it was not in direct competition with New Zealand labour. Apart from this, the effect would be to raise the wages of that cheap labour to some extent, by providing more work for it, while the cheaper goods prduced" would find a market in areas where prices are at present too high to permit an increase in consumption. RESULTS OF QUOTA. Britain, remarked one speaker } had placed a quota upon our mutton products that was likely l to make old ewe mutton a drug on the market. The mutton could be produced and frozen here at a very low cost. If it could be tinned elsewhere at a low cost it would increase the supplies of chcap food to those needing it, and at the same time relieve the British market of meat that is not wanted there. If the same methods of New Zealand could be raised to a higher level of profitability. Mr E. Palliser (Springdale) said that the emphasis in Government propaganda for production, had hitherto been placed entirely on high quality goods for export, bvft the time had come to pay some attention |to lower quality cheap goods, ana the penetration of new markets, as a means of increasing the national income. If condensed milk and cheap meats, as well as fruit, were exported in bulk on the lines that had been suggested, a considerable expansion of our export trade was possible. The scheme had the great advantage that it would make l'ttle or no call on sterling since the raw materials were produced locallv. It was decided to pursue the mat. ter further with the Department of Industries and Commerce, with view to exploring its possibilities.