U.S. casein ruling favours N.Z. farmers

Press, 21 January 1982, Page 2

U.S. casein ruling favours N.Z. farmers

NZPA Washington New Zealand farmers won the battle over casein yesterday, but the war goes on. Yesterday’s finding surprised both sides. The United States International Trade Commission ruled that the milk protein imports did not materially affect America’s dairy price support programme by substantially replacing domestic dairy products.

That means the commissioners will not recommend to President Ronald Reagan that he institute quotas, as demanded by the American farmers’ organisations. The decision was; vital to New Zealand, which' supplies about 51 per cent of America’s casein, bringing in $67 million a ,year. It is New Zealand's second biggest export to the United States, after beef.

America produces no Casein. Dairy farmers find other products more profitable because they come under the generous price support schemes which result in ever-increasing production and huge surpluses of cheese, butter, and milk powder. Three American dairy industry lobbyists said before yesterday’s vote that their best reading of the situation indicated that the commissioners would recommend a quota. (The industry asked for a quota set at 50 per cent of levels over the last five years.)

■ A United States Department of Agriculture source was reported similarly, and New Zealand sources were apprehensive. A spokeswoman for America’s national milk producers' federation said after yesterday’s finding that “it

certainly was disappointing so far as we were concerned." Her federation found it "hard to believe that with the evidence that was documented by the United States Department of Agriculture and the cost the imports are creating for the price support programme that the commission would rule against import restraints.” Mr Reagan was not bound to follow the commission’s recommendation, but she agreed that the prospect of his overturning it was remote.

Mr Bruce Stewart, president of the Chicago-based New Zealand Milk Products, Inc., a wholly owned subsidiary of the Dairy Board, said: “We don't feel complacent.” He had no doubt that the American dairy lobby again would try to reduce imports.