Emerging from an entrenched colonial economy: New Zealand primary production, Britain and the EEC 1945-1975

Abstract

The phrase ‘entrenched and colonial’ describes well the trading relationship between New Zealand and Britain in 1945. In that year 90% of New Zealand’s exports were primary produce and difficult to sell outside Britain, and New Zealand’s trading resembled a service to Britain, “Britain’s offshore farm” according to Robert Muldoon, rather than an economy free to choose its customers. Changes in Britain made adaptation in New Zealand primary production essential in the decades after 1945. Britain increased its own agricultural production to replace food imports; its textile industry declined, reducing the need for raw wool; and Britain became a member of the European Economic Community (EEC), an organisation that had strong protection for its domestic farming against suppliers from outside the Community. By 1975 the phrase ‘entrenched and colonial’ was no longer appropriate: primary produce still dominated New Zealand exports (78%) but more than 75% were now sold outside Britain. New Zealand had diversified both its export markets and the produce it exported. The thesis analyses how that transformation took place in the meat, dairy and wool industries, focussing on producers within the farm-gate, those handling the produce between the farm-gate and exporters, for instance, wool brokers, and freezing and dairy factories, and those representing, informing and supporting primary producers, mainly Federated Farmers and statutory boards. It contends that, for meat and dairy exports, New Zealand successfully adapted by building Asian/Pacific markets together with developing the produce and marketing techniques essential to secure those markets, and that producers within the farm-gate increased productivity considerably. For wool exports, rather than a need to reduce over−dependence on the British market, the main drivers of change were the competition from synthetics and the need to mitigate the impact of price collapses caused by economic factors outside New Zealand’s control. But successful wool trading through the 1940s, 1950s and early 1960s discouraged change and major attempts at reform were successfully resisted by woolgrowers in the late 1960s and early 1970s. New Zealand successfully navigated through the potential threats from British membership of the EEC by adopting an effective strategic narrative that encouraged Britain and the EEC countries to agree special arrangements for New Zealand. That enabled New Zealand to keep exporting to Britain produce for which Britain remained the most remunerative market, especially lamb and butter. Britain remained an important trading customer but now as just one amongst many with New Zealand no longer Britain’s offshore farm.