THE FAT LAMB

Evening Post, Volume CXVII, Issue 106, 7 May 1934, Page 11

THE FAT LAMB

IS. HE A TjIFEBUOY?

MR. BRUCE'S VALUATION

NO EXPORT EXPANSION

(By "Observer.")

Beside studying butter it is . necossary that tho public should keep its eye on cheese, and also on lamb and mutton, in order to follow the movements and expressions of Mr. S. M. Bruce—and, indeed, in order to grasp the export problem generally.

If Ottawa agreements ; aro to be rigid, the British Government cannot restrict entry of butter, and cheese till next year, but it can restrict entry of lamb and mutton after Juno 30 next.

To divert Now Zealand farming in some degree from 1 dairy produce to lamb and mutton is a proposition which should be considered, therefore, in the light of the last-stated fa«t. Freedom Ot tho British Government to restrict, or to apply a quota, is imminent in the case of lamb and mutton.

At present tho Minister of Lands is waiting to see whether Galatea sections' should be smaller dairying sections, or larger mixed farming sections. Tins waiting attitude is typical of many Zsew Zealand farmers and farming interests. The fat lamb might prove salvation—but it is the fat lamb that will come soonest outsido the Ottawa fold. What room has the fat lamb export to expound?

GAP BETWEEN MEAT AND WOOL.

Lamb and mutton stand in a completely different position from wool, for wool is bought by all nations; but lamb and. mutton are sold in practically only one market, thesUnited Kingdom. The New Zealand farmer who turns from dairy produce to wool has the nations to sell to, but when he exports mutton, and lamb he has only the United Kingdom to turn to (unless, of course, new markets are found, which is still problematical).

The above, statement concerning the world market ,;for wool is, of course, subject to the qualification, that foroigii countries may restrict entries of wool, as Germany has done tentatively. Italy talks of admitting "wool subject to her balance orV trade with the woolsupplying country being satisfactory. And now that Britain has mentioned quotas' to Japan, it is.' foared in Australia that a Japanese' restriction on wool is nearer, if only as: a bargaining weapon. -. ■■■■•.' • ■ '

The fact remains/however, that the de^mand- for wool is international, while the eating of lamb and mutton is largely British;. Mr.Brueo /has lately, pointed out that "the British, people are the only consumers of mutton and lamb to any great extent.''... ,

How, "'then, is New> 's problem (alternatives iiv farming) affected by .the ,immineneo of the date when Britain', the only "market for'lamb .and mutton, will be free to icstricfS

■Australian papers havo attributed to. Mr. Bruce some- fairly clear-cut views on ,this question. ...■"Summed- up, they, seem to ( be that, in lamb and mutton, Australia , and . Xfew Zealand ; have already, thanks to Ottawa, improved their position in the British .market; at the expense of the,foreign supplier; that the British' Government may permit them some extension of tncii- supplies of lamb and mutton, at the expense of the foreign supplier but not at the. expense-of the grower of home meat; that, therefore, Australia and New Zealand cannot maintain, in.lamb and mutton export, the high rato of increase recorded in the last feu- years. "progress agatkst foreign '■- .-.' '"' supplies: Points from the Australian versions of*-Mr. Bruee'sviews may be summed up as follows:— .'" ; "/.-" 1. The foreign supplier of lamb and mutton.,,is. .less.a thorn, in. the side of the Dominions than he is in the case of some other major-products. Compared with/these products, lamb and mutton! present-"the simplest case," being "a matter mainly 'between Australia and New.Zealand-and the: British market." ■■ • :%. : "At- Ottawa the British Government had agreed to restrict supplies of mutton and lamb from foreign sources gradually, so that-at the end of six quarterly periods the restriction, was 35 percent, as- compared with a basic year. The final quarter . under- this arrangement was the June quarter of this year. These restrictions had had the effect of improving prices' in: the British- market, and these prices were now' quite? satisfactory to British producers .and to Australia and New Zea? land, which were-'the two'great exports ing igountries." '■■'■.'f-W ■' ' ■.*.'[■■'"; .. . 3. ".The position that Australia was now faced with, Mr. Bruce explained, was that, if .Australia and-jNew Zealand regulated supplies to' the British inai-ket so as to ensure the maintenance of remunerative prices,"; no 'action would' be taken, to restrict imports into Britain. If, on the other Hand, Australia. and New Zealand increased their exports of mutton and lamb in the same way as these/exports had 'been,.increased -over the .past few years, it was -inevitable that the-British Government, in defence of its own meat industry, would be compelled to take action.". ■■'...,, STABILISE ABOUT PRESENT LEVEL. ; 4. "Exports to .the British, market could not be expanded as in.the last feiiryears.' Australia and New Zealand were, therefore, faced with the necessity of stabilising' their, exports at