N.Z. BUTTER AND CHEESE

Press, Volume LXXXVII, Issue 26538, 28 September 1951, Page 6

N.Z. BUTTER AND CHEESE

NORTH AMERICAN MARKETS

MR MARSHALL REPORTS ON VISIT (New Zealand Press Association) WELLINGTON, September 27. _ "Conditions under which butter is imported into Canada have undergone a radical change, and the alteration is to our disadvantage,” said Mr W. Marshall, chairman of the New Zealand Dairy Products Marketing Commission, on his return from the United States and Canada to-day. “New Zealand has been the traditional supplier to Canada, when importations were required, at the current market price, less 5 cents per lb duty, but this has now been completely changed, said Mr Marshall. Last month the Canadian Government had decided to put butter under import control, and established a marketing board, the members of which were officers of the Department ot Agriculture. This / board had been given exclusive power to purchase and import butter from overseas, and had this season spread its purchases over four countries. “The commission will do its nesr under the altered conditions to maintain its traditional place in the Canadian market,” said Mr Marshall, and with continued goodwill this should be possible. It seems to me, however, that we may have to be satisfied from time to time with a lower price than the current market price, less duty, and possibly a lower one than tne trader importer would be willing to P Restrictions in U.S. “Cheese that was in transit in early August, when the restrictions came into force, has been allowed to enter the United States under permit, but any quantity that is ‘above quota for the August-December, 1951, period is being carried forward to the 1952 quota,” said Mr Marshall. In August we had nearly 2000 tons ‘in transit, and this was from last season’s production. ± . “It now appears that, except for such quantities as may be admitted under appeals on the ground of hardship, importers have only got entitlement for about 109 tons during the remainder of 1951, and 66 tons for the first quarter of 1952. These quantities are so small that we may be unable to arrange shipment.” Mr Marshall said that the commission, without prejudice to New Zealand’s objection to the principle of restriction of imports, had petitioned for an increase in the quantity of New Zealand cheddar-type cheese that could be imported in the calendar years 1951 and 1952 to 14,000,0001 b per annum, and the petition was now being considered. Casein was restricted to the quantities that were imported into the United States in the fiscal year ended July 30, 1951, and there was at present no restriction as to country of origin. The commission, on behalf of a number of dairy companies, had contracted with the Borden Company, of New York, for the supply of up to a maximum quantity of 1800 tons of lactic casein per annum for three years. There were prospects for building up a steady outlet for casein.

"Breach of Agreement” "There appears to be no, question that the restrictions recently imposed are a breach of the United States agreement under the General Agreement on Tariffs and Trade, and the matter has already been raised at the meeting now being held in Geneva," Mr Marshall said. The President of the United States and the Administration are opposed to the law as it stands, and proceedings have been commenced for its repeal. Congress, however, is expected to adjourn about the end of this month, and it appears unlikely that the proposal will be dealt with by the House of Representatives this session. There is much coming and going on the matter in Washington, with each group pressing its own interests and point of view.” Mr Marshall said there was evidence of goodwill towards New Zealand in official circles in Washington, but the obligation of the United States throughout the world was to-day so vast and the need in particular of European exporting countries to earn dollars so great that he thought any easing that might be made would apply to all exporting countries. “Unfortunately, there will be a reduction of about two-thirds in the modest quantities of cheese which we had begun to export to the United States unless our hardship petition is successful, or the administrative basis of import control is changed, or the law is amended,” he said. Conditions during the summer and early autumn in both Canada and America had been most favourable to dairy production, and the markets in both countries had been “heavy.” Interest in importations in consequence was much less than it was two or three months ago.

BUTTER SOLD TO

EIRE

(New Zealand Press Association) WELLINGTON, September 27 ..T l } 6 New Zealand Dairy Products Marketing Commission has reached agreement for the sale of 6000 tons of butter to Eire, to be shipped during h e next four or five months. rirf’iL is , the second year in which Eire has bought butter from the commission. Last year a purchase of 2000 tons was made.

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