BRITISH CHEESE MARKET

Press, Volume CIX, Issue 31942, 20 March 1969, Page 1

BRITISH CHEESE MARKET

Voluntary Limiting Of Supplies

(N.Z.P.A.-Reuter —Copyright)

LONDON, March 19.

Australia, New Zealand, and Ireland have agreed to limit voluntarily their cheese exports to the United Kingdom to avoid a glut on the British market, the Government announced yesterday.

The Agriculture Minister (Mr C. Hughes) told Parliament that these three nations, together with British producers, supplied nearly 90 per cent of Britain’s cheese needs.

He said the agreement to restrain cheddar and cheddar-type cheese exports would run until March 31, 1970, and that he was now urgently negotiating with other cheese suppliers on the same lines. These included Canada, France, the Netherlands and South Africa.

The agreement could be regarded as “no more than a temporary palliative,” said “The Times” in an editorial today.

The restraint on cheddar and cheddar-type imports would get some qualified welcome from the British dairy industry.

The newspaper said that the art of making the cheese was not confined to the place or even country of the original cheese’s origin. Market Threat Nobody really wanted the collapse of the whole market which seemed to be threatened earlv last summer, said “The Times.”

But if the milk and dairy industry was to make any real contribution to import savings, it was clear that the cheese makers must have more room for expansion than agreements of this sort looked like giving them.

New Zealand now regarded the way clear for the principal suppliers to co-operate with Britain in restoring order to the British cheese market, said the Minister of Overseas Trade (Mr Marshall) yesterday in Wellington, according to the Press Association.

“After nearly a year of protracted discussion the elements of a workable voluntary scheme have been established for the two-year period fending March 31, 1970,” said 'Mr Marshall. “The British Government has now to talk to the minor suppliers and some other details remain to be settled. N.Z. Delegation “We are hopeful that the fscheme will come into effect iat the same time as the arrangements for butter for 11969-70,” said the Minister.

New Zealand’s delegation in London, which had been negotiating on butter quota allocations during the last two months, had also been discussing the question of cheese exports, said the Minister. Mr Marshall said he expected that an announcement on the season’s butter quota would be made in London before the end of the week. He would then be in a position to comment in more detail. “We appreciate :he decision of the Irish Republic to limit cheese exports to the United Kingdom market to 35,000 tons for the two-year period ending March 31, 1970,” the chairman of the Dairy Board (Mr F. L. Onion) said yesterday. “We must point out, however, that this accords Ireland very favourable treatment in the light of their past supplies. Largest Share “A collapse in the United Kingdom cheese market would not be in their interests any more than those of the other major suppliers—including the United Kingdom dairy producers, who have the largest share of the United Kingdom cheese market.

“New Zealand, Australia, and the United Kingdom have been holding supplies at present levels for some years in order not to worsen the heavy build-up of cheese stocks and to avoid a serious market collapse in the event that all supplies were offered for sale as and when they arrived.

“However, we are pleased to note that agreement has been reached among the four main suppliers, at least to a voluntary limitation on supplies meantime.

“We shall await the further announcement by the United Kingdom Minister on negotiations with other suppliers with some anxiety,” he said.