U.K. request brightens prospects for cheese

Press, Volume CXIV, Issue 33601, 1 August 1974, Page 2

U.K. request brightens prospects for cheese

I.VZF.4. Stflff Correspondent) LONDON, July 31. Britain today asked New Zealand to increase its dwindling cheese exports to the Lnited Kingdom, and to supply “meaningful quantities” for years ahead.

The request, from the British Africulture Minister (Mr Fred Peart) to hia vvMtjnf counterpart from New Zealand (Mr Mayle) may cause a major rea-ssessment of New Zealand'* cheese exporting policy. Under a special arrangement with the European Common Market. New Zealand’s cheese exports to Britain are being phased out. There will be no guaranteed access after 1977

But Mr Peart told Mr Moyle that Britain wanted to examine ways of continuing New Zealand's access for cheese. He suggested a special tariff arrangement. Mr Moyle said tonight: “it we accept the British intention. our rapid phase-down of cheese supplies to the United Kingdom must be reconsidered.’’ He said he would recommend that the Dairy Board send more cheese to' Britain this year. ‘This could herald a fundamental change to the tuture of our cheese, and I

think we should be prepared to co-operate with the British in the short run and supply their requirements,” he said. Because of higher prices in the United States. New Zealand's cheese exports to Britain this year are running at only 25 per cent of the quota allowed under the E.E.C. arrangement. “We had been led to believe that there would be no market for us here after 1977, so we had no alternative but to move out as quickly as we could,” said Mr Moyle.

"They are now talking about taking meaningful quantities after 1977 in a way that will not require any substantial change to the E.E.C.’s Common Agricultural Policy.” Mr Moyle said he had told Mr Peart that New Zealand wpuld guarantee quantities to the British market if the price were satisfactory. “A lot of things have to be clarified, but this could be very significant. I think there will be reduced imports and lower prices into the United States next year,” Mr Moyle said. A satisfactory price was

[essential to any new deal with Britain, he added. New Zealand was now seeking substantially more than the 14 to 15 per cent price increase suggested earlier this year. Mr Moyle told Mr Peart today that New Zealand’s production and freight costs were increasing 3 to 4 per cent every three months.