SALE OF N.Z. BUTTER AND CHEESE

Press, Volume LXXXIX, Issue 27074, 24 June 1953, Page 8

SALE OF N.Z. BUTTER AND CHEESE

Britain Agrees To Pay More

REDUCTION IN PRICE FOR MILK POWDER

fNew Zealand Press Association) WELLINGTON, June 23. The British Government has agreed to increase the price it pays for New Zealand butter and cheese during the 195354 season, by slightly less than 4 per cent., but prices for milk powder products are to be reduced by about 71 \per cent. Under the new agreement drawn up in London between the New Zealand Dairy Products Marketing Commission and the British Ministry of Food, New Zealand guarantees to supply 90 per cent, of her exportable surplus of butter—an increase of 21 per cent.. New Zealand must also supply 92| per cent, of her exportable surplus of cheese.

Announcing the new schedules today, the office of the commission in Wellington said: “In present circumstances it will be generally agreed that the outcome of the negotiations is satisfactory.”

A review of costs in the industry and the fixing of the guaranteed price for the new season would be considered later, the office added.

Increases in the prices for butter and cheese have been agreed to as: Butter, finest grade, from 314 s to 326 s per cwt. Cheese, finest and first grades, from 176 s to 182 s 6d per cwt. The differentials for other grades are to continue as at present. Prices to be paid for milk powders are: spray-dried skim, reduced by 6s 6d per cwt to 84s 6d; roller-dried skim, reduced by 5s 6d per cwt to 70s; rollerdried buttermilk, reduced by 5s per cwt to 60s, All prices are sterling, f.0.b., New Zealand. The commission’! office said that the quantities of milk powder that the British Ministry of Food would take were considered satisfactory.

The schedules for the 1953-54 season should allow the industry to expand on a sound basis, and must engender a feeling of greater confidence in the future marketing of dairy produce, said the Minister of Agriculture (Mr K. J. Holyoake) tonight. The prices should give general satisfaction to the industry, he added. “In view of the trend of prices in other markets and the virtual exclusion of produce from the United States, our negotiators have done well in securing about a 4 per cent, increase in- butter and cheese prices and securing prices for milk powders which, in present world marketing conditions, must be considered reasonable, nothwithstanding that they, are about 7£ per cent, below those obtained for the last season.”

It was gratifying to know that agreement had been reached so promptly, Mr Holyoake said.