PRICE-CUT IN BUTTER

Press, Volume CI, Issue 29763, 5 March 1962, Page 14

PRICE-CUT IN BUTTER

Australian Move (N.Z. Press Assn.—Copyright) MELBOURNE, March 2. The Australian Dairy Produce Board today told licensed exporters that, provided they give satisfactory evidence of price-cutting, it would consider dropping its price to meet the market. This surprise move concerns all world markets except Britain. It follows serious loss of business to cutprice foreign butter in many of Australia's most important markets in the Mediterranean, Asia, South-east Asia and the Pacific. Australia is threatened with an unsaleable butter surplus of more than 20 million lb. The Melbourne “Herald’s*' agricultural correspondent said the board’s decision means the virtual end of a long-standing agreement with New Zealand on butter prices. The chairman. Mr E. G. Robertson, denied, however, that Australia would seek to undersell New Zealand. He said that Australia and New Zealand in the past had agreed on common prices. Now Australia had told New Zealand that she would meet New Zealand prices. He said today’s move would not affect the price of butter in Australia.

Some exporters said the move followed repeated claims by agents, particularly in South-east Asia, that New Zealand was taking a lot of business away from Australia.