Prospects Of Butter Sales To Aust. Still Not Clear

Press, Volume CVII, Issue 31563, 28 December 1967, Page 1

Prospects Of Butter Sales To Aust. Still Not Clear

(From

DAVID BARBOUR,

N.Z.P.A. special correspondent)

SYDNEY, December 27. Prospects of New Zealand butter being imported into Australia are still not clear after statements by the Prime Ministers of both countries and by Australian dairy officials in recent days.

The issue appears to centre on what was said at talks between Mr Holyoake and his Australian counterpart (Mr McEwen) in Canberra and Melbourne last week.

Mr Holyoake apparently received the impression that there were real prospects of New Zealand butter gaining entry to the Australian market for the first time. He told a press conference on Saturday that this could involve “not a large quantity of butter, but a worth-while quantity.” On the other hand, Mr McEwen, who is not only Minister for Trade but leader of the Country Party, which represents farming interests, has since said categorically: “Australia would certainly not be prepared to import butter.” Dairy Opposition Observers believed that Mr McEwen may have made his statement, after telling Mr

Holyoake that Australia was prepared to relax its ban on the import of New Zealand butter, in order to appease his party supporters who are bitterly opposed to the suggestion.

Mr McEwen already faces tough opposition from dairy farmers who are worried about the Government’s outlined proposals to reconstruct the industry. According to reports today.

Australian dairy industry officials believe the entry of cheaper New Zealand butter on the Australian market would be “catastrophic” for dairy farmers. A spokesman for the Australian Dairy Produce Board said there would be no short supply of butter for the local market, and “ample” for overseas, although production might be down in the next year. Part Of Quota It appears certain that New Zealand will pick up some of Australia’s 74,000-ton butter quota on the British market in the coming year. Mr Holyoake had talks on this point with the British Prime Minister (Mr Wilson) in Melbourne on Friday, and Mr McEwen, said that New Zealand could make good Australia’s shortfall—“if there is one.” But Mr McEwen said Australia would reman an “im-

portant exporter" of butter, and local dairy officials believe they will have no trouble in meeting export requirements, in spite of the drought in Victoria, the country’s major dairy producing state. Australian dairymen are likely to be more in favour of New Zealand getting a small part of Australia’s export trade than in gaining entry to the domestic market. They sell overseas at below the cost of production, and the dairy farmer gets a higher return from domestic sales than from exported produce. Australia’s butter output was at record levels in 196667, and SNZ4S.6m worth of dairy produce and eggs were exported to Britain during the year. The Bureau of Agricultural Economics reported last week that Australian butter production would fail this year, and that overseas markets would remain severely competitive.