FEARS among sheep producers of increased competition from imported
lamb are being played down, despite suggestions that New Zealand
suppliers are seeking greater access to European Community markets.
The Brussels-based European director of the NZ Meat Producers Board,
Mr Neil Taylor, and its UK marketing chief Mr John Mabb, have both been
quoted as claiming that the EC could comfortably absorb 15% more NZ
sheepmeat.
At present, an official voluntary restraint agreement limits the
volume to 205,000 tonnes annually -- about half of which comes to the
UK.
But there is speculation that board officials may try to persuade the
EC Commission to allow an increase in the quota tonnage when the
agreement comes up for renewal at the end of the year.
However, a spokeswoman in London said: ''Although demand for our
product is greater than we can meet under the quota, in practice we
expect the current trade agreement with the EC will be rolled over for
1994.''
The apparent inconsistency with the widely reported comments by Mr
Taylor and Mr Mabb is partly a reflection of conflicting political
pressures on the board.
On the one hand, it has to be seen as representing the interests of
New Zealand farmers -- while, at the same time, acting responsibly in
not pushing for unrealistic or potentially disruptive changes to the
balance of the EC sheepmeat market.
NZ Meat Board officials have been particularly anxious to avoid a
repeat of the controversy over lamb imports which soured relations with
Scottish producers in 1992. Yet they also need to consider their
relationships with the retailing and meat processing companies which use
NZ sheepmeat.
Although a rollover of the VRA would limit the NZ shippers to the same
total sheepmeat tonnage for all the EC markets next year, it might still
leave scope for extra lamb to enter the UK in competition with domestic
production.
A late start to New Zealand's 1992-93 lamb killing season meant that
an unusually large proportion of the sheepmeat arriving in this country
earlier this year was, in fact, mutton. Lighter grade lambs are still in
abnormally short supply in the London trade.
Importers suggest that if the next killing season -- due to begin at
the end of September -- has a more normal profile, then larger numbers
of NZ butchers' grade lambs could be available in the UK even within a
similar total sheepmeat quota.
However, currency changes could work to the advantage of British sheep
farmers. UK trade buyers have been complaining since early last year
about New Zealand shippers diverting supplies from this country to
Germany and other Continental outlets, where trade is priced in D-Marks.
The crisis in the European currency systems has effectively revalued
the D-Mark against the NZ dollar, increasing the incentive for New
Zealand shippers to continue these diversions.
Germany is already their second biggest EC market after the UK. New
Zealand is a relatively less significant supplier to the French and
other Mediterranean markets, which are the main focus of UK lamb export
activity.
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