British Market ‘Vital’

Press, Volume CVII, Issue 31409, 30 June 1967, Page 3

British Market ‘Vital’

(N.Z., Press Association) WELLINGTON, June 29. Although sales of dairy products to markets outside Britain had risen during the year, the importance of the United Kingdom to New Zealand’s trade had nevertheless increased, said the chairman of the Dairy Board (Sir Andrew Linton) at the Dominion dairy conference in Wellington today. “We look forward to an early opportunity to improve butter prices in the United Kingdom,” he said. “We will review the situation when the United Kingdom Government’s wage and prices freeze runs out next month.” Dumping of dairy produce, particularly butter, by European countries had increased during the year to such an extent that it constituted a severe threat to New Zea-

land’s position, said Sir Andrew Linton. But for the safeguard afforded by the British quota system, New Zealand would be in difficulty. Alternative markets for butter and cheese in the quantities New Zealand was selling in Britain simply did not exist, he said. Sales to markets other than Britain in the year ended March 31, 1967, came to £36 million, which was easily a record and compared with £2O million two years ago. Record Sales Sales of butter to markets outside the United Kingdom in the year ended March 31 were in excess of 35,000 tons and were a record. 1 Cheese sales to these mar- : kets were also a record 28,000 I tons, and milk powder sales would set another record. Skim milk powder production ’ had increased 50 per cent in ■ the season just ended, to I more than 130,000 tons. The greater part had already been sold, nearly 90 per cent of it outside Britain.

Sir Andrew Linton said that casein production was down because of the switch to milk powder. The season’s export output was about 45,000 tons, of which the greater part had already been sold, mostly outside Britain. Big Increase The greatest advances had been made in the Asian and United States markets. Japan had become much more important as a market to New Zealand in the last year. Sales of dairy produce to Japanese buyers would exceed £l4 million, a threefold increase in one year. Considerable progress had also been made in South-east Asia, including Malaysia, Thailand and the Philippines. Sir Andrew Linton said that sales to Britain in the year ended last March had reached £77 million. Butter accounted for about 70 per cent. The butter price was the key to market returns and circumstances beyond the board’s control had resulted in the price being held to a low level, said Sir Andrew Linton.