Noumea’S ‘Steak And
pp. 55-57 · Read in the full issue
Chips’ Board
From PAUL STERLING in Noumea
Originally created to provide ter ritorial cold storage facilities, the Office de Commercialisation des Entrepots Frigorifiques (OCEF) was later granted the monopoly of meat marketing in Noumea. The role of the organisation is to protect local production, at the same time importing the necessary com plement to meet consumer demand.
The year 1972 was the year of a scandal which resulted in the depar ture of the previous director and the appointment of Mr Jean-Louis Mir.
The ex-manager was a public ser vant, the new manager a person whose past experience was strictly commercial.
Mr Mir took over an organisation with a $300,000 overdraft, on the verge of bankruptcy. Breeders were incapable of forecasting production, butchers were eager to see the or ganisation close down to recover their previous rights to import, while the Territorial Assembly began asking embarrassing ques tions about relationships with certain “privileged” exporters.
The new manager introduced a system of overseas purchases calling for tenders from approved export abattoirs in Australia and New Zea land. Undesired intermediaries and agents were asked to abstain from submitting. Local suppliers were ad vised the OCEF would introduce a calendar of slaughtering and that three months’ notice would be re quired of those wishing to sell meat to the organisation. Butchers con tinued to fight the monopoly, but opposition dwindled as they began to appreciate the vigour and deter mination of the new management.
In 1974, OCEF’s monopoly was extended to cover pork, as well as beef and veal. But attempts to take over the marketing of poultry were abandoned because of the resistance of indignant importers. The price of beef purchased from the local breeders was raised, butchers’ profit margins lowered, and the marketing organisation introduced a new scale of prices which would allow OCEF to make a profit, hopefully ab sorbing the overdraft. The butchers staged a protest strike and the High
Commissioner immediately an nounced that OCEF would sell directly to the consumer as long as the movement lasted.
Australian and New Zealand authorities co-operated fully with OCEF and Mir’s regular visits to both meat boards created an at mosphere of renewed confidence.
But the sudden drop in world beef prices, disastrous to many Australian breeders, was to be the most important factor in getting OCEF back on its feet. During 1974, OCEF was purchasing “extra” quality beef from the local breeder at 130 francs per kilo, and selling to the butcher at 165 francs. The same beef was being imported from Australia for around 80 francs per kilo. That year, OCEF marketed 1500 tonnes of local beef and im ported 1300 tonnes.
New Hebrides breeders were en couraged to step-up beef production to export to New Caledonia, The French administration’s aim was to reduce expenditure in foreign cur rency, and improve the economy of the condominium. The Santo breeders are not satisfied with re sults, exports being hampered by the problem of transport.
The success of the new system of operation lead the government to invite the Territorial Assembly to grant OCEF the monopoly of potato marketing. The project was finally accepted last September, despite re sistance from the private importers.
The results have been dramatic.
With, for the first time, a guarantee that produce will be bought at har vest at a pre-determined price, far mers have placed orders for seed that will double local production and make the territory self-suffi cient for the first time in its history.
But OCEF has been obliged to dis courage enthusiasms as consump tion has dropped from 4000 tonnes in 1975 to 3000 tonnes in 1976 and is expected to decrease further in 1977.
In a territory devoted to private enterprise and quick profit, OCEF has demonstrated that an organised public service can encourage local production. New Caledonia’s trade
is traditionally turned towards im ports, to the detriment of any at tempts to produce locally. But OCEF has not overcome the major problem of New Caledonia’s econ omy, the cost. This year, potato pro ducers will be claiming 30 francs per kilo, three times as much as their Australian and New Zealand coun terparts. Local beef is the most ex pensive in the world.
Meanwhile, a definite policy is becoming apparent. New Caledonia is organising its agricultural pro duction, despite the disadvan tageous prices. Imports can decrease and primary industry become a new source of employ ment, despite the resulting cost to the consumer.
With a price index automatically applied to monthly salaries, this can generate an acceleration in infla tion, and will doubtlessly prohibit exports. Incapable of developing any exports except for nickel, the trade balance can only be improved by reducing imports. OCEF has set the example: will private initiatives follow?
PNG has a
butterfly farm
Papua New Guinea has estab lished its first commercial butterfly farm. The government-sponsored project at Bainyik, west of Wewak, will breed butterflies for sale to overseas collectors.
It will also work in conjunction with PNG butterfly breeders who are being established in the area.
Beetles and other insects are also being included in the project which will involve about 150 “insect far mers’’ and associated workers.
PNG has some of the most colour ful and largest butterflies in the world, and their export is now closely controlled. Heavy penalties have been incurred in court hear ings over the past 12 months for the unauthorised export of butterflies.
The main markets for the new project will be Australia, United Kingdom, Sweden, Japan, Hong Kong, United States and Taiwan.
A government rural development officer has been appointed to the scheme full time and overall super vision is being provided by the Bainyik agricultural extension station.