BOARD HEAD SAYS BUTTER NOT SHORT

Press, Volume CIV, Issue 30667, 5 February 1965, Page 3

BOARD HEAD SAYS BUTTER NOT SHORT

(New Zealand Press Association)

WELLINGTON, February 4.

Comments published on the Dairy Board’s attitude in the present United Kingdom negotiations on the butter quota were “pure speculation,” said the board’s chairman (Sir Andrew Linton) in a statement today.

Sir Andrew Linton said that until the quotas were announced, the board could not reply to some of the points made, but would welcome the opportunity to do so when results of the talks were announced. Certain of the statements made, however, required immediate refutation. In the first place there was not, as had been stated, a world dearth of butter at present. Stocks in Europe were at good levels and prospects for supply during 1965, given a reasonable season, appeared satisfactory. In fact, prices of Danish and blending butters were now falling—a sure indication of increase/! supplies.

“It has also been suggested,” said Sir Andrew Linton, “that we are taking the attitude that Britain should not increase her overall intake because we would find it inconvenient at present to meet a larger quota. This is pure speculation, and very wide off the mark. NOT AN ISSUE “There is no question of our finding it inconvenient to meet the quantity of butter expected to be sent by New Zealand under the quota system. Britain is well aware of our position and it is not an issue in the talks,” he said. Sir Andrew Linton said quotas were intended first to prevent unlimited dumping of butter on the British market and second to maintain stability of supplies and levels of price satisfactory both to consumers in the United Kingdom and to the main supply nations.

New Zealand had always recognised that it was not in her interests to allow consumption, and therefore levels of off-take, to fall. New Zealand’s record in the United Kingdom was proof of this and the United Kingdom Government had acknowledged the fact. It was illogical, therefore, to suggest that “New Zealand should agree to higher imports.” HIGHER STOCKS Stocks of butter at the end of the present quota year in the United Kingdom were higher by more than 20.000 tons than last year, and if higher imports of any magnitude were agreed to consumption could not be kept at present levels. Off-take would have to increase considerably and that could only take place at lower prices. Sir Andrew Linton said statements also suggested the Dairy Board’s attitude to the United Kingdom talks was governed by the fact that New Zealand could not both fulfill its obligations in outside markets and also meet the United Kingdom quota. ' Sir Andrew Linton denied this. “What we have said In the past, and what we repeat, is that neither the country nor the dairy industry can afford to sell at a loss in any market when profitable long-term markets exist for the disposal of all our production,” he said.