Grim Threat” To Exports Of N.Z. Skim Milk Powder

Press, Volume XCVIII, Issue 28888, 7 May 1959, Page 11

Grim Threat” To Exports Of N.Z. Skim Milk Powder

(New Zealand Press Association)

■ WELLINGTON, May 6. v ■isaster threatened New Zea- r n*s export trade in skim milk g ■der to many countries as a ( Bit of American dumping in [ Dominion’s established J Ikets, the ...pairy Industry In- ( fcation Service said today. i I a statement surveying the ’ lage to New Zealand’s trade, 1 | industry spokesmen said that . lew and unannounced policy Aggression in the disposal of trican milk powder surpluses developed in recent weeks. tf the dumping campaign conies as at present, New Zeap 1 will be driven out of many die smaller markets it is now plying,” the statement said, k phe United States AdminI ption has repeatedly claimed ' f it will compete fairly and 1 not break world prices. This tence of fair competition uld be dropped. It is sheer , histry. There have been ay cases, in recent weeks parilarly, where the United tes ha sold powder at prices ich m ke a mockery of world irket levels. The United States has gone ther in recent weeks than in -• the earlier years of its surB disposal operations. ‘‘Give-away Prices” “Offering skim milk powder at re-away prices, far below proiction costs in America and ew Zealand, it has embarked i an aggressive selling camlign which is displacing long- - itablished New Zealand trade traditional markets such as ermuda, Jamaica, and other lands of the West Indies, in idia and in other markets such s Panama, Peru and the Philipines where New Zealand has een developing a promising olume of trade. “In Japan, where interest has ieen shown recently in New eiland milk powder, the United tates has now stepped in and old 5000 tons from its surplus tocks at 4 cents per lb, or not nuch more than a quater of

what it cost the American Administration.

‘‘The principle is exactly the same as if the United States Government should buy new American motor-cars for the full price of, say, £ 1000, then sell them in ‘competition’ with other exporting countries at £3OO each in New Zealand money, and then use the American taxpayers’ money to recoup the loss. “New Zealand has made many strongly-worded protests, but these have been ignored, while the tide of American dumping has mounted. Prices Compared ‘‘ln February, the ‘commercial’ export price of American surplus skim milk powder was slashed from 9 cents to 7 cents per lb. Since then, the product has been sold around the world at prices down to 4 cents per lb or £32 a ton, which compares with the standard market price in Britain today of more than £BO a ton. ‘‘Notwithstanding its superior efficiency, New Zealand is being priced out of its traditional export markets by the limitless resources of the United States Treasury, which are being used to bolster a type of competition that is indefensible on moral grounds as well as by the accepted canons of commerce. ‘‘The New Zealand dairy industry is powerless to stem this aggressive wave of indefensible ’ competition. Of what avail .is i the superior efficiency of the in- [ dustry in New Zealand in this . grim struggle to hold on to its . markets?”