BUTTER MARKET

Press, Volume CI, Issue 29728, 23 January 1962, Page 14

BUTTER MARKET

Talks Open At Geneva

(NJZ, Pren Aum.— Copynpht) LONDON, January 22. Plans to ensure that New Zealand and Australian butter suppliers to Britain continue to get an economic return for their shipments will be discussed at a major international butter conference beginning in Geneva today. The aim of the conference is to examine the basic causes of the present world over-supply, with particular reference to the British market.

Delegates were concerned at what would follow the end of Britain’s import restrictions on March 31, said the "Financial Times.”

Britain was by far the most important butterimporting country in the world, but in November the Government had been forced to restrict imports to 212.000 tons for the six months ending on March 31. As a result, quotas had been allotted to suppliers. All had agreed with the action, except Ireland, which complained about its quota of 4000 tons. Later, a dumping duty had been imposed on Irish butter.

Since then the position had remained unchanged, said the "Financial Times.” Ireland had been unable to find an alternative outlet and had consequently been forced to build up large unsold stocks On the other hand, Britain's aim of supporting the New Zealand and Australian dairy industries by pushing up prices in Britain to provide them with an economic return for their shipments had been largely achieved.

The price of New Zealand finest on the London Provision Exchange was now 285 s per cwt. But New Zealand claimed that if the limitation on exports was removed prices would quickly revert to their previous uneconomic levels.

“As production in European countries reaches its peak in the months from April onwards this is undoubtedly correct,” said the newspaper.

Consequently the conference was expected to spend most of its time trying to reach agreement on what action should be taken to prevent United Kingdom prices falling after March 31

It would also endeavour to discover whether or not certain industrialised countries —other than Britain —could increase their imports. The United States and West Germany were considered to be the likeliest possibilities.