SUBSIDY ON MILK

Press, Volume C, Issue 29599, 23 August 1961, Page 5

SUBSIDY ON MILK

U.K. Scheme Criticised (London Correspondent of “The Press") LONDON, August 21. Under the heading “Butter Prices Scandal.” London's “City Press” has published a leading article condemning British subsidies On “excessive milk production in this country.” ■ On New Zealand’s appeals against butter dumping on Britain, this weekly. City of London newspaper said: “It is our profound* conviction that this application should be vigorousy opposed.” Instead of banning cheap imports, Britain should stop subsidising excessive milk production.

Because supply exceeds demand, more milk is made into butter at a very high price, said the "City Press.” “Since 1854, butter production in this country has risen from 22,800 tons a year to 37,400 tons last year. According to the quality of milk, it requires from two to three gallons to produce one pound of butter. This means homeproduced butter is costing consumer and taxpayer about 8s a pound to produce. This compares with the 2s 3d a pound current price of the New Zealand product.

"It is not the Continental producer that New Zealand should attack,” said the paper, without reference to Continental price support devices or to the irregular surpluses from dumping countries. “It is the British Government. The British consumer should be allowed to buy butter from the cheapest market, and if we stopped producing at a ridiculous cost New Zealand—and indeed all other suppliers—could get a reasonable price.”