KOREA CATCHING JAPAN IN TEXTILE EXPORTS
The head of W. & R. Fletcher’s wool department, Mr Alan Chapman, says that apart from the increasing importance of Korea as a developing meat market, Korea is also developing rapidly as an importer of New Zealand wool.
Mr Chapman, who recently visited New Zealand’s far east markets, said that Korea was gaining dominance in the textile field, winning ground in export markets previously held by Japan.
“The Koreans are fiercely competitive and labour rates are low compared with other industrialised Asian countries,” he said. “They work hard and are fast acquiring expertise and product reliability, aided by technical and economic assistance given by the Government to 15 key industries to enable them to penetrate the Japanese market and compete with Japan on international markets.
“The fear of invasion from the north has stimulated the dedicated low-paid work force to achieve a real growth of 10 percent annually for the past decade, mainly due to exports.
“A sobering thought, to a personal observer, is that Korea is now very similar to Japan ten or 12 years ago. In another 10 years or less, the Korean currency could well be as strong as the Yen is today, and Korea could also inherit the same problems now facing the Japanese. Nevertheless Korea offers an increasing potential as a market for most of W. & R. Fletcher’s product range and as a result considerable effort is being made to expand exports to this area.
“The textile business in Hong Kong and Taiwan tends to be somewhat interwoven, but both countries remain an important outlet for New Zealand scoured wool. Wages are higher and labour is scarcer than in Korea, but both countries have developed a high level of technical skill and marketing expertise, and are therefore important exporters of manufactured textile products.
“Hong Kong’s economic strength is probably underated by the larger trading nations, and she is now an established bulk supplier of woollen finished goods to the large American and European markets.
“Taiwan, despite being politically shunned by the majority of the world, still has a significant share of the export market.
“New Zealand faces particularly strong competition from Australia in wool sales to Hong Kong and Taiwan, but Fletcher’s is now established as a reliable supplier, a hard won reputation which has recently come under pressure from delayed exports because of industrial action in New Zealand.
“Japan remains an enigma. Having produced an historic economic rise in recent years, the textile industry in particular is re-trenching in an endeavour to balance supply and demand with wages. The competitive edge may have eroded, but Japan’s large and prosperous population still offers a real market for New Zealand wool and other products.
“In Japan at present one pays 300 yen ($l.37 NZ) for a cup of coffee, so a kilo of scoured wool at around $3 must represent good value.
“Japanese families are using more wool carpet in their homes, and New Zealand wool is taking a large share in this market. Tweed is showing signs of returning to fashion, and when it does New Zealand Down-cross lambs wool will again be in demand. We aim to be ready when that time comes.
“Selling in the Far East is not easy, they are tough traders, but Fletcher’s are well placed to maintain and increase its share of these vital markets,” Mr Chapman said.
N.Z. MEAT TRADE EXPLAINED TO KOREANS
The New Zealand Meat Exporters Council, the Meat Board and Government officials recently played host to a high level Korean delegation visiting New Zealand to further trade relations between the two countries.
The deputy Chairman of the MEC, Mr Peter Johnston, told the delegation that New Zealand was vitally interested in furthering the growing meat trade to Korea, but needed Korean understanding of New Zealand production patterns and grades.
The Korean delegation comprised representatives of private companies and Government, and included Mr Kwang Wom Rhin, vice president of the Korea Trade Promotion Corporation.
Evidence of the importance that Korea places on trade with New Zealand was the presence of the Korean Minister of Commerce and Industry, Mr Gak-Kyo Choi and the Director General of the Bureau of Livestock in the Ministry of Agriculture and Fisheries, Mr Kang Shik Kim.
New Zealand meat exporters explained to the Korean delegation that New Zealand climatic conditions, year-round grassland farming and seasonal turn-offs made it difficult to supply bone-in beef – the product the Koreans have shown priority for – throughout the year. This was particularly so as facilities for producing bone-in beef were limited and the initial tenders from Korea were at short notice with Korean specifications different to the general requirements of New Zealand’s major international markets.
Mr Johnston said that New Zealand’s peak supply period was mainly in the first half of the year and this was therefore the time when New Zealand could best participate in the supply of bone-in beef against Korean tenders.
While Korean preference for bone-in beef on traditional grounds was fully understood, and prior notice of requirements would ensure the maximum supply from New Zealand, some swing to boneless cuts in suitable grades would fit in with standard production and represented a readier year-long availability, probably at advantageous terms for Korea, Mr Johnston said.
Arrangements were made for Korean representatives to see the range of New Zealand meat qualities and cuts during a visit to the Westfield Freezing Company works, and it was suggested on behalf of the MEC and the Meat Board that a small technical group on both sides could work towards producing specifications as an aid to further improving trade and understanding.
Mr Johnston said the meetings were most cordial and both sides found the free and frank discussions most valuable.
A Meat Exporters Council delegation and representatives of the Meat Board will visit Korea shortly to hold further discussions with importers and government officials about Korean requirements and specifications.
W. & R. Fletcher has been closely involved with the development of New Zealand meat exports to Korea, supplying a major part of beef exports to this new market, which in the three years that Korea has been buying beef from New Zealand has developed into a market of increasing potential.
KAITI COOL STORE OPENED
The Gisborne Refrigerating Company’s new $1.1 million cold store was officially opened recently by the joint head of Union International, Lord Vestey, during his visit to New Zealand.
Pictured above attending the opening funtion [function] are directors of the Gisborne Sheepfarmers Freezing Co. Ltd., which operate the works in conjunction with W. & R. Fletcher, (from left) Messrs J. W. Clark, R. J. M. Reynolds, H. B. Williams, chairman of both Gisborne companies, and F. D. Martin.
The commissioning of the cold store, which has a capacity of some 170,000 lambs, marked the completion of the first stage of the upgrading programme to the Kaiti works.
Work is now underway on the construction of a new three chain mutton slaughterhouse, which is due to be completed by October 1979.
The foundations are well advanced and pre-stressed wall panels are being installed.
In addition the old fruit cool room, butcher’s shop and fitting shop areas have been completely demolished to make way for the construction of carcase blast freezing tunnels which are also due to come into operation at the beginning of the 1979 killing season.
U.S. REP TOURS N. Z.
The sales manager of Weddel’s United States offices, Mr Carl Hottinger, recently paid a brief visit to New Zealand to tour W. & R. Fletcher plants.
Mr Hottinger, of Tupman Thurlow Co. Inc., who operate from New York and San Mateo, just outside of San Francisco, toured the Tomoana, Patea and Westfield works during his week long visit, and also had talks with head office personnel in Wellington and Meat Board officials.
During the familiarisation visit Mr Hottinger also took the opportunity to provide Fletcher’s staff with up to date information on American sales trends and requirements.
His visit was a timely one as it coincided with the announcement by the United States government of significant increases in the quotas of beef imports, which provided encouraging news for New Zealand’s beef growers.
After his visit to New Zealand, Mr Hottinger flew to Sydney to have talks with senior staff at Fletcher’s sister company in Australia, William Angliss, and also toured Angliss plants in the Eastern states.
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