U.K. May Increase Butter Quotas

Press, Volume CII, Issue 30057, 15 February 1963, Page 9

U.K. May Increase Butter Quotas

(N.Z Press Association—Copyright) LONDON, February 14. The over-all quota on butter imports into Britain might be increased by 20,000 to 30,000 tons, the “Financial Times” said today.

The newspaper said: "Although the subject has not been officially broached with the producing countries, it is understood th.t quota restrictions on butter imports into the United Kingdom will probably be renewed for a second year when the original period expires at the end of March.

“It is also understood that the over-all import quota may be enlarged from the present figure of 390.000 tons, possibly to 410.000 or 420.000 tons, for the 1903-64 period “The arguments for increasing quotas are. apparently. already being pressed by Denmark, which is particularly anxious to see an increase in its share of 91.600 tons now that its prospects of joining the EEC. have been indefinitely deferred by the Brussels breakdown. •"Australia, with a current quota of 62.000 tons, would also welcome an all-round increase—especially as it is expecting to be left with a 20.000-ton surplus at the end of the current season. And so would France, although

her chances of benefiting might seem to be rather slight “But New Zealand, as the United Kingdom's largest supplier, with a quota of 156.000 tons, is reported to be rather more reluctant to see an increase.

“The United Kingdom market price for butter has only just reached the point where it equals the guaranteed price to the New Zealand farmer, and British butter prices—as the New Zealanders are believed to have emphasised—are still the lowest In Europe. •‘ln view of New Zealand’s pre-eminent position in the market her views may carry weight in persuading the

Government at least to the extent of limiting any increase in quotas.” the newsoaper said. In Wellington, the Minister ot Overseas Trade (Mr Marshall) said last night: “We have had discussions with the British Government on the British butter quota but no decisions have been made as yet”