Difficult to Enter European Lamb Market

Press, Volume CVI, Issue 31107, 9 July 1966, Page 19

Difficult to Enter European Lamb Market

(Special Crspdt. N.Z.P.A.)

ROME, July 7. Italy continues to be the one Continental European country where New Zealand annually exhibits at trade fairs in a bid to increase its exports.

The reason lies in the fact that meat consumption in Italy is increasing, and a belief that New Zealand frozen lamb has made a promising start in spite of an Italian law that forbids the sale of fresh and frozen meat in the same shop. New Zealand has made repeated approaches to the Italian Government urging a change in this law, but it remains. It could continue in force until enough pressure is exerted at a domestic level by local importers. Better distribution outlets and frozen meat facilities in Italy also have to be developed before New Zealand meat exports can register some significance in the Italian market. This will undoubtedly come within the realm of the trade office of New Zealand's embassy here, which will be set up later in the year. The whole question will also most certainly be discussed in talks between New Zealand's Minister of Overseas Trade, Mr Marshall, and Italian ministers. The Italian Government, like the French, feels it has to protect its own lamb producers and can not afford to have meat coming from over-; seas at more than competitive prices. Nevertheless, New Zealand lamb is already selling here in supermarkets, although the total quantity is small, during the northern winter. If the French Government feels prepared, after examination, to change its frozen meat law, the same thing could happen in Paris. In essence, this is the New Zealand approach. It should not be imagined for a moment that as a result of Mr Marshall’s European tour New Zealand Frozen Mutton and Lamb will be allowed to flood into the Continent. For one thing, New Zealand does not have the

| supplies. For another, the ! Common Market countries are l politically very sensitive to pressure from their local [farmers, even though it is conceivable they may suggest something promising on meat —for New Zealand—When they make their agricultural offers in the Kennedy Round, expected during September. Where New Zealand is running with the tide, it seems is in correctly assessing increasing European affluence, supermarkets, refrigerators and the like.

The supermarket boom is

slowly but steadily making inroads into European cities and European life, and, unfortunate though this may be to the sensitive European ! palates, frozen foods appear almost certain to be a distinci tive development in Europe during the next decade. But it is not, of course, going to fall into New Zealands’ lap. Increased production of meat at home is going to have to be a reality not just a repeated political urging. New Zealand’s representatives overseas will have to be skilful and dogged in putting across New Zealand’s case for supplying and the Meat Board, together with the major meat importing companies, will have a lot of cajolling to do before frozen meat facilities

for the handling and distribution of the product are established on the Continent. Italian imports from New Zealand during 1964/65 amounted to £8.6 million, a drop of £4 million over the previous year. New Zealand imports from Italy, 1964/65, were worth £3 million.

Questioned on the apparent imbalance in trade, New Zealand trade officers say that wool—valued at £5.7 million —is included in Italy’s imports. It is a raw material which re-enters the Italian export trade. Italian exports to New Zealand are dominated by heavy electrical machinery, some motor vehicles, office machinery and textile fabrics of a high quality.