GUARANTEE CUT FORECAST

Press, Volume CVI, Issue 31319, 15 March 1967, Page 3

GUARANTEE CUT FORECAST

(New Zealand Press Association) NEW PLYMOUTH, March 11. New Zealand dairy farmers could not continue “living with their heads in the clouds” and would have to accept a cut in their guaranteed butter price next year, Mr H. S. Benton, of Kaponga, said today.

Mr Benton, president of the Taranaki Federation of Dairy Factories, said the new increased butter quotas made it

obvious that Britain was out to keep butter prices down.

“We can’t blame her for this and it could be an insurance for us in minimising the competition from substitutes,” he said.

The guaranteed price could not be cut more than about lid per lb as the price could not be altered by more than 5 per cent in either direction in any one year. The responsibility was now on the Government to keep down costs. Although New Zealand was selling butter at a loss in Britain, she had to fight for a full share of the market “or let somebody else in,” said Mr Benton.

Northumberland Early.— The Federal Steam Navigation Company’s cargo liner Northumberland which arrived at Lyttelton from Brisbane in ballast yesterday morning is not expected to start loading until next week as she is ahead of schedule. She will lie idle at Lyttelton in the meantime.