FOOD SURPLUS IN U.S.

Ashburton Guardian, Volume 70, Issue 45, 3 December 1949, Page 5

FOOD SURPLUS IN U.S.

HUGE QUANTITIES IN WAREHOUSES EFFECT OF PRICE SUPPORT LEGISLATION (N.Z.P.A.—Copyright) ‘ , WASHINGTON, Dec...l r . ' More than'loo,ooo,ooo pounds of unsold butter has accumulated ae. a surplus in the United .States -. Government warehouses. ,' Agricultural Department officials explained that this was the reason why the United States was unable, to permit New Zealand, Australia, Denmark and other butter-exporting countries to sell butter to the United States for much-needed dollars.' They said .that even if those countries were to offer butter at prices below.. the American price, the department could not permit its sale because of a, law passed by Congress this ‘•• year, providing restrictions on the import of butter if the United States. Government owned a surplus supply . which it was endeavoui-ing to liquidate in an. orderly manner. The law is part of the farmers’ price-support legislation, by which the Government assists farmers to- keep up. the price of their products by purchasing any surplus which they are unable to sell at a fair price. The Government is accumulating in its warehouses vast quantities of eggs, butter, potatoes and other products and spending hundreds of millions of dollars for them. It is able to dispose of only a small quantity -by giving them away to schools, hospitals, and other welfare institutions.