Strong world demand for dairy products

Press, Volume CXIV, Issue 33527, 7 May 1974, Page 5

Strong world demand for dairy products

Ihe strength of dairy markets overseas and the prospects for continuing growth justified the maximum effort to increase productivity, the chairman of the Dairy Board (Mr A. L. Friis) told the board’s ward conference at Rotorua yesterday.

The shortage of grains for animal feeds had depressed milk production in North America, Japan, and Britain. The shortage of fats and oils had caused margarine prices to reach butter levels. Cheese values had risen steeply. In the absence of acceptable substitutes, milk powder and other milk protein; products had risen to a point where skim-milk powder was of nearly equal value to whole-milk powder. “Stocks of milk products in world trade are low. Dairy 7 herds in most dairying countries outside Europe are static or declining. The European ‘surpluses' have disappeared, and demand re-, mains at high levels. It is 1 difficult to see any build-up' in supplies of milk products in world trade before the end of next year. “The conclusion is inescapable that we should be bending every effort to stabilise the dairy industry on a secure economic basis

and to apply all our ingenuity and resourcefulness to increase our productivity and develop our markets.” BRITISH MARKET Mr Friis said that the value of the arranged butter and cheese prices in Britain had been seriously depreciated by inflation and the decline in the value of sterling. The board had been closely associated with the Government in efforts to obtain the European Economic Community’s agreement to a revision of the British market return. “The British market is still of great importance to New Zealand, and we shall continue every effort to maintain our place there. It may well turn out that Britain will require New Zealand dairy produce in volume for many years after the end of the transitional period in 1977. “It is imperative, however, in our mutual interests to secure a more reasonable pricing formula. The individ-

ual member., of the European Community have shown a considerable measure of sympathy for our case. TIES WITH BRUSSELS “Our co-operation with the E.E.C. Commission has extended to a wider sphere. We have close working relations with Brussels, and information is freely exchanged between us. The commission has shown a responsible attitude in its external policies, and in the efforts to avoid disruption of our trade,” said Mr Friis. Mr Friis said that the proportion of the New Zealand dairy trade remaining with Britain had declined in large part because of the very low returns from the British market. “It is important to recognise, however, that our butter and cheese sales to a number of markets have no guarantee of permanence, and that, given reasonable prices, Britain will remain our most valuable market for butter-fat products.”