BUTTER IN E.E.C.

Press, Volume CIII, Issue 30561, 2 October 1964, Page 13

BUTTER IN E.E.C.

Stockpiling Report (N.Z. Press Association) LONDON, Oct. 30. The approach of the Common Market regulations for butter, which come into force on November 1. has prompted some members to build up butter stocks in expectation of profitable exports at higher price levels, says the “Financial Times.” France, in particular, had boosted stores, to 15,000 tons in the hands of private dealers, and 42,000 tons held by Interlait, the milk marketing board. Unfortunately for France the strike by milk farmers has upset the Government’s plans. It has authorised the release of 15,000 tons of butter from stock to bring down the spiralling retail prices, and to hit the farmers where they make their greatest profit—on butter. In addition, 5000 tons of butter have been imported, and this may be the first instalment of many. Apart from the higher prices, the Common Market butter regulations will cause shifts in international trade in the commodity. France and the Netherlands can expect to sell more to Italy and West Germany, for not only are quota restrictions removed, but import levies will also be lower. These exporters will consequently find it more profitable to switch butter from Britain to the other E.E.C. countries, and the third nations, previously oxporting to the E.E.C., will hope to make good their losses by redirecting sales to Britain.