U.K. BEEF Big Boost For Producers

Press, Volume CIX, Issue 31943, 21 March 1969, Page 20

U.K. BEEF Big Boost For Producers

(N.Z.P.A. Staff Correspondent)

LONDON, March 20.

United Kingdom beef producers today received their biggest boost in Government support since the existing farm-support system was introduced in 1947.

Out of a total extra Government grant to the agricultural industry of £34tn they are to receive £2om—a gesture considered certain to lead to the further expansion of British milk production.

No specific additional funds are made available to milk producers in the annual price review, but the Minister of Agriculture (Mr C. Hughes) himself admitted dairy farmers would benefit from the higher beef subsidies. At a press conference after he had tabled details of the review in the House of Commons, Mr Hughes found himself caught in a cross-fire. On the one hand he found it necessary to defend himself against criticism for not giving extra direct financial aid to dairy producers; and on the other there was a need to assure overseas suppliers of dairy products, notably New Zealand, that the Government was not encouraging milk production for manufacturing purposes. Two Points In dealing with the two points he claimed that Britain had no specific undertaking with New Zealand not to encourage milk production, but later added that the extra award for beef producers was not in conflict with Britain’s obligations. “This is not a deliberate undertaking to increase milk for production purposes,” he said. Mr Hughes made it clear

that he hoped increases in home production would be met by increased consumer demand.

The White Paper indicated that milk production in the current year was expected to ’ be up by about 45m gallons. It is expected to go up again in 1969-70. Four Review* The total cost of agricultural support for 1968-69 is expected to be about £2Blm —£2om more than in 1967-68. The estimate for the coming year is £318.5m. Mr Hughes said that this; was the first of four reviews :• under the selective expansion programme for agriculture aimed at saving £l6om in imported food by 1972-73.

“I came to the conclusion we should make a good start, on beef this year but holdback on milk,” he said. - '