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Wairarapa Times-Age, 18 February 1942, Page 3

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SURVEY BY THE MINISTER OF AGRICULTURE SOME DETAILS OF AGREEMENT WITH BRITAIN. POSITION REGARDING MEAT & DAIRY PRODUCE. (By Telegraph—Press Association.) WELLINGTON, This Day. Arrangements made with the United Kingdom for the purchase of New Zealand’s main primary products during the period of the present war were outlined in general terms by the Minister of Marketing, Mr Barclay, in an address last evening. The Minister said that though the agreements had not been completed, the negotiations had reached a stage that enabled him to indicate the likely trend these agreements would take. He said the long-term interests of the Dominion would be better served by a tendency to decrease export meat and butter production.

SHIPMENTS & STORAGE. By the terms of the arrangement which has been entered into this year between the New Zealand Government and the New Zealand Meat Producers’ Board, the Government had agreed to purchase the normal exportable surplus for the '>1941-42 production year subject to any restrictions on killing that might be rendered necessary by shipping, marketing or other difficulties. The Government also agreed to consult the board with regard to the administration of the special account created from the proceeds secured, from the additional prices granted by the United Kingdom Government and the agreed reductions in the Marketing Department’s f.o.b. price schedule. Dealing with the meat contract for the present year, Mr Barclay said that the United Kingdom Government had under the surpluses agreement agreed to assure equal liability with the New Zealand Government for a total quantity of 301,500 tons of meat. This included 190,000 tons of meat to be exported in the frozen form, and 37,150 tons in canned form. It appeared certain that the Dominion would be producing a total quantity of export frozen meat in excess of this total contract figure, and there was likely to be a surplus production amounting to approximately 17,000 tons, which would remain the entire responsibility of New Zealand. In addition, the export meat carried over from last season also still remained outside the surpluses agreement. This amounted to 78,000 tons, which, together with the estimated surplus production this year of 17,000 tons, gave a total of 95,000 tons of meat, valued at £5,250,000, remaining the entire responsibility of the New Zealand Government. In addition to this liability, both the United Kingdom and New Zealand Governments would share equally in the cost of the meat coming within the surpluses agreement but which remained unshipped during the present year. The present export season began with a carryover in store from last season of 83,400 tons of meat, of which 10.400 tons was reserved mainly for canning, and which by now had been manufactured into canned form. Assuming that the necessary shipping was made available to carry out the contracts, it was estimated that at the end of the present year the total amount in store would have risen to 135,000 tons. As the total storage capacity throughout the Dominion was now 256,000 tons, this stock on hand at the end of the year meant that the total storage capacity would be just over half-full when next season’s operations began. DAIRY PRODUCE. Mr Barclay said the following were the major features of the dairy produce agreement:— (1) Under the surpluses agreement, the United Kingdom Government agrees to share equally with New Zealand the financial responsibility for the production of up to 160,000 tons of cheese, and up to 115,000 tons of butter, for the duration of the war and one year thereafter. (2) With regard to this season in particular, the United Kingdom Ministry of Food has agreed to a contract quantity of 160,000 tons of cheese. In the case of butter, however, there will be no firm contract quantity for this season, but the Ministry of Food will lift all they can and will pay for the quantity lifted at current contract prices. In addition, sale contracts have been made this year with the Ministry of Food covering 6500 tons of skim milk powder, 2000 tons of evaporated milk, 2000 tons of whole milk powder, and 1500 tons of condensed milk. LOOKING TO THE FUTURE. The Minister said it was obvious from the figures he had given that there should be no programme of increased production for either meat or butter, but rather that production should at least be stabilised and reduced by individual dairy and sheepfarmers wherever possible by additional culling of their herds and flocks. Furthermore, it might be possible for the farmers in certain districts to divert production into other channels. For instance, there was an urgent need for greater wheat growing in New Zealand. “To sum up the position,” said Mr Barclay, “it can be said that the longterm interests of the Dominion would be better served by a tendency to decrease export meat and butter production, because the post-war possibilities facing both industries will be largely influenced by the amount of accumulated produce in store at the end of the emergency period, and if the stocks can be kept within reasonable limits, the position of our export industries will be greatly strengthened. To offset the need for less production of meat and butter, there is the need for a greater production of wheat, linen flax, cheese, and possibly other milk products such as whole milk powder.