Hard German line on butter likely

Press, Volume CXII, Issue 33034, 29 September 1972, Page 3

Hard German line on butter likely

(N.Z.PA. Staff Correspondent*

BONN, September 28.

W est German Ministry 7 of Agriculture officials, in an interview today, took an extremely tough attitude towards New Zealand’s Luxemburg arrangement with the E.E.G.

The arrangement will! be reviewed in 1975. The officials said that Bonn would examine the way in which New Zealand had diversified its exports in the intervening years.

“If New Zealand is looking! to sympathetic treatment I from the E.E.C. in the re-| view, it should look very closely at the needs and demands in the world market: from now on,” said one ofS : cial. The official said that al-1 though there were very few;

regulations barring the ac- ; cess of New Zealand beef : to West Germany, and in spite of a tremendous de-| mand for the product, exports stood at almost zero. “In 1965 New Zealand ex-1 ported 7500 tons of beef to Germany,” he said. “By 1967; this had dropped to 500 tons! and now there are almost no exports at all. We feel that!

New Zealand is always trying to send us lamb—for which there is a very small; market—when we would i really like to receive beef.” CASEIN SHORTAGE Another product the official mentioned was casein. Here again, he said, -was a! product which West German] manufacturers wanted, but could not obtain from New. Zealand in sufficient quanti-| ties.

“Obviously you have found ! other markets for your milk ; products if you cannot meet this demand,” he said. “It is, therefore, a little surprising ; to us that you should come I asking for special arrangements for butter.” It is clear that certain sec- ' tions of the official hierachy in the West German Ministry j feel that New Zealand wants ■ to have it all ways—exporting to the more profitable beef markets of the United i States while palming off surplus lamb in Germany; and supplying casein only when the production situation is such that other importers are looked after first. BUTTER SURPLUS The same officials also in- ■ dicated that West Germany ‘ regards the butter surplus in | the Community as one which will last at least through the 19705.

This view was supported by Dr Ortwin Wagner, chief of the dairy products section of the German Farmers* Association (the equivalent of Federated Farmers). “While it is true that cow numbers can be expected to continue to drop, it also seems certain that production will rise throughout the E.E.C.,” he said. “Added to this is the fact that a drop in consumption of butter also appears likely.” While he recognised the difficulty of selling butter in other world markets, Dt Wagner said that West Ger-

many would be happy to see New Zealand gradually withdrawing from the British market.

“Our projections show that there will be a surplus of about 170,000 tons at the end of this year,” he said. “Under these circumstances it would obviously be helpful if we did not have to accommodate another 170,000 tons from New Zealand.” These attitudes mean that New Zealand can expect some hard negotiating sessions in 1975, when a decision will be made on an exemption for New Zealand butter after 1977. It is obvious that to satisfy the West Germans at least—and their attitude is likely to be less hard than that of the French — proof of strenuous diversification will be necessary and willingness must be shown to forsake short-term profits for long-term stability. In Brussels today, it was reported that the United States, New Zealand and Australia have protested to the Common Market against a plan to control imports of fruit and vegetables to the Common Market.

France and Italy have asked the European Economic Community to put quotas on the import of fruit and vegetables whenever the member Governments have to enter the market to support official prices in a “massive and long term” way.