JAPAN CUTS N.Z. DAIRY IMPORTS

Press, Volume CVIII, Issue 31676, 11 May 1968, Page 40

JAPAN CUTS N.Z. DAIRY IMPORTS

(Special Correspondent N.Z.P.A.) TOKYO, May 10. New Zealand Daily Boat'd negotiators in Japan have been told that milk powder imports for the school lunch programme are being cut iron® metric tons last year to 24,000 metric tons, and that half of this would be bought in Western Europe and North America.

New Zealand sold Japan 34,500 metric tons of milk powder in the year ended March 30, 1968, for just under 4000 m yen (about SNZIOm).

The deal, with big increases in Japanese purchases of butter, cheese and other products, pushed Japanese imports of dairy products from New Zealand up to 78,800 metric tons, worth 12,848 million yen (about SNZ32m) for the year.

This made the New Zealand dairy industry the country's biggest export earner on the Japanese market—ahead of meat and wool. The Dairy Board negotiators have been told that as well as cutting down the volume of milk powder purchases, the official School Lunch Corporation is offering sharply reduced prices. They have also been told

that another official body, the Livestock Industry Promotion Council, has heavy stocks of butter and would not be in the market for more butter for several months. The council is Japan’s only importer for dairy products and a major importer of beef and pork. It has been set up to protect Japanese primary producers by regulating meat and dairy imports.

Director’s Visit Negotiations for this year’s dairy product imports began in February when the Dairy Board’s marketing director (Mr N. Jones) visited Japan. They are continuing this month with a member of the board, Mr R. W. Greenough, who is chairman of the milk powder committee, the export sales director (Mr H. T. Jones) and the technical director (Mr W. H. Thomason).

Mr Greenough said that North American and Western European dairy surpluses were going on to the market under circumstances which amounted to a Government subsidy. The surpluses had been built up under national marketing schemes which provided for high domestic prices and they were sold at flexible prices for the sake of foreign exchange. “It is going to hurt, but we will match them for price,” Mr Greenough said. The Japanese school lunch programme began after the Second World War with United States surplus milk powder which was supplied as aid. American Surplus New Zealand came in to the market last year when the American surplus disappeared. Mr Greenough said the board had been told that the Japanese School Lunch Corporation intended progressively to increase the proportion of fresh milk and reduce the proportion of reconstituted milk used. Mr Greenough, Mr Jones and Mr Thomason have been having talks with the School Lunch Corporation, the Livestock Industry Promotion Council, and major cheese and casein importers. , The Dairy Board negotiations are expected to enter their final stage next month.

A Dairy Board spokesman in Wellington last night declined to comment on the cuts in Japan’s orders for New Zealand milk powder.

London Post—Sir Denis Blundell, New Zealand's recently appointed High Commissioner in London, and Lady Blundell arrived in London early this morning by air. They were met at Heathrow Airport by the acting High Commissioner (Mr Hunter Wade).—London, May 10.