Plan To Increase Butter Sales

Press, Volume CII, Issue 30277, 1 November 1963, Page 13

Plan To Increase Butter Sales

(N.Z. Press Association—Copyright) WASHINGTON, October 31. A new payment-in-kind export programme for American dairy products was announced yesterday by the Agriculture Department.

Exporters who ship butter, anhydrous milkfat, butter oil, ■ ghee, and other products containing not less than 75 < per cent milkfat will receive negotiable certificates from the department. Certificates will be issued for foreign sales previously registered. They may be used to buy butter, cheese, non-fat dried milk, wheat, feed grains, or rice from the Commodity Credit Corporation. The certificates will be redeemed at face value for 180 days with a 1 per cent daily discount thereafter. On November 1. an export rate payment—based on standard butter containing 80 per cent milkfat —will be announced. The department already ope rates a payment-in-kind programme for the export of

non-fat dried milk but today’s announcement extends the programme to the other dairy products. Officials said the new programme was designed primarily to help butter sales overseas. The C.C.C. has been selling butter for export at world prices which are lower than United States prices but the butter is salted, and the world prefers unsalted butter. The exporter bought butter from C.C.C., sold it in the domestic market and used the proceeds to place his export order with a processor. Under the new programme, the exporter will now be able to place an order for unsalted butter directly with a processor. ■Rie exporter will receive a certificate from C.C.C. covering the difference between the world price and the price the exporter pays the processor. The certificate may be redeemed for other surplus United States farm products and then sold by the exporter, giving him his subsidy by payment-in-kind.