DAIRY PRODUCE AGREEMENT

Press, Volume LXXXIV, Issue 25548, 16 July 1948, Page 8

DAIRY PRODUCE AGREEMENT

Britain To Pay 235/For Butter QUANTITIES MAY BE REVIEWED (P.A.) WELLINGTON, July 15. Agreement has been reached in London between the British Minister of Food and the New Zealand Dairy Products Marketing Commission for the sale of the exportable surplus of butter and cheese to July 31, 1955, and for the 1948-49 season. Britain will pay 235 s sterling a hundredweight for butter, an increase of 30s on last year’s price and a correspondingly increased price for cheese, which last season was 118 s. ■ This was announced to-day by the Minister of Marketing (Mr E. L. Cullen). Mr Cullen said tne new prices would be subject to annual review with a maximum variation up or down of 7| per cent, in any season on the price for the preceding season. The quantity to be made available from the 1948-49 season was 97 per cent, of the exportable surplus calculated on a butterfat basis, compared with £7J per cent, under the previous agreement. The quantity was subject to review annually, and at any time if necessary for the procurement of essential commodities from other countries.

“Negotiations have been carried out in an atmosphere of goodwill and completed in the expectation that the agreement reached will give a measure of long-term stability which will encourage maximum production and be mutually advantageous to New Zealand and Britain,” said the Minister.

SATISFACTION OF DAIRY BOARD

ADVANTAGES IN NEW CONTRACT

STABILITY FOR INDUSTRY (P.A.) WELLINGTON, July 15. “I think the industry will appreciate some of the advantages apparent in the new contract,” said Mr W. E. Hale, chairman of the New Zealand Dairy Board, this evening, “and I have no doubt that those who made the contract on behalf of the Dairy Commission will have protected us against a situation where economic difficulties overseas would make a maximum price rise of 7£ per cent, in any one year insufficient.” When representatives of the British Ministry of Food were in New Zealand earlier this year they were Repeatedly asked what Britain could offer that would ensure maximum production in New Zealand, said Mr Hale. The reply was always given that as farmers had to plan well ahead, stability for the future was needed, and a longterm contract would provide that stability. It was therefore pleasing that the new contract covered a sevenyear period, and he hoped and believed that dairy farmers would plan for increased production now that they could see the future clearly outlined. “The price increase will, I think, be regarded as satisfactory, particularly when related to the clause which allows an annual revision of prices with a possible increase of up to 7| per cent.,” said Mr Hale. “Moreover, the protection offered over a period in which economists have warned us there may be a serious drop in prices will not be lost sight of. “Very Reasonable Basis”

“Our dairy farmers have consistently sought stability of prices and to have their costs covered, and the new contract provides a very reasonable basis for achieving the two points. “We are entitled under the new contract to ask for a review every year of the quantities we can exnort to markets other than British, and at any time if we have to exchange produce in order to secure essential commodities from other countries. We all know how seriously production has been affected in New Zealand through a shortage of fencing wire and other commodities. Through thii? clause we mav be able to secure these muchneeded things from other sources and, ultimately, through increased production. Britain will-benefit. “In the -short, cabled statement many noints which will interest the industry must necessarily be omitted, but I have no doubt they will have been covered in x the agreement. I think the industry’s reaction to th* 3 new agreement will kfe in line with the concludin'* lines in the cable, and that dairv farmers will be encouraged to increase production because of the long-term stability n**»w offered.”