Risk Of World Fall In Prices

Press, Volume CVIII, Issue 31633, 20 March 1968, Page 24

Risk Of World Fall In Prices

(New Zealand Press Association)

WELLINGTON, March 19.

Although welcoming the 1968-69 British butter quota agreement as satisfactory, Federated Farmers say that the benefits could be “somewhat illusionary.”

“A very real danger exists that the massive European stocks shut out of Britain and the increasing accumulation of stocks in the United States, will appear on our other markets, forcing existing low prices down further,” said Mr J. J. Parsons, chairman of the federation’s dairy produce section.

Mr Parsons said that factor emphasised the urgent need to expand world demand for increasing dairy production. One disturbing feature of the announcement was the

prospect of increased domestic British production. “The British Government undertook in 1963 not to encourage the expansion of milk production for manufacturing purposes, yet butter and cheese production is increasing rapidly,” he said. “The recent price review increase is certain to further stimulate bulk production and consequently the amount available for manufacturing purposes.”