U.S. Dumping Butter In N.Z.’s Caribbean Markets

Press, Volume CII, Issue 30120, 2 May 1963, Page 14

U.S. Dumping Butter In N.Z.’s Caribbean Markets

(New Zealand Press ‘Association)

WELLINGTON, May 1.

American dumping of butter was undermining New Zealand’s trade in the Caribbean, the chairman of the Dairy Board (Mr A. Linton) said today.

He said the New Zealand Government, at the board’s request, had protested to the American Administration.

Mr Linton said the Caribbean was a traditional New Zealand market where the trade had been carefully nurtured and greatly expanded in recent years, always on the basis of fair commercial prices. It was now facing a serious threat from American butter which was being offered in several markets in the West Indies at prices around 200 s a cwt f.o.b.—far below the prices at which the board was selling. The Americans were selling surplus butter at less than half the cost to the surplus disposal authorities. The difference was being made up by the American taxpayer. "This is competition which cannot be described as anything else but unfair,” said Mr Linton. “American exporters are being allowed to acquire butter from the stockpile of the Commodity Credit Corporation at ‘fire sale’ prices and offer it at prices at which no farmer in the world could produce it "Up to the present, it is

fair to say that, in our view, the disposal of American surplus products has been carried out with due regard and some protection for the interest of the dairy exporting countries. We have expected the same consideration to be shown in the Caribbean area, and we can only hope that prompt action will be taken by the American authorities to rectify the position. "Besides being unfair to us. the present American operations in the Caribbean add up to utter nonsense economically. for they simply mean the American taxpayers are taking money from their own pockets to subsidise consumers elsewhere, and, in doing so, are seriously jeopardising the trade of a friendly country.” Mr Linton said the American authorities were also offering butter at prices far below cost for conversion into butter oil.

“This product is being offered in important markets in the Pacific at completely

uneconomic prices. In- other words, butter oil, like, butter, is being dumped in our markets. * "At present, we have the largest trade of any country in the world in butter oil, which is principally used in milk recombining operations. The board has built this trade up on the basis of quality and service and fair prices. Any extension at the present time of unfair American practices could see it seriously affected.”

Dried Milk Sold

To Japan

(N .Z.PA.-Reuter—Copyright) WASHINGTON, April 30.

The United States and Japan today signed a contract for the sale of 187,391,0001 b of United States non-fat dried milk to the Government of Japan for use in the Japanese school lunch programme. The contract is believed to be the largest sale of American dairy products.

The price is 5 cents a lb which is below the commercial price.