Combined approach on butter urged

Press, 1 September 1982, Page 3

Combined approach on butter urged

PA Wellington A combined approach to world markets by New’ Zealand and the European Community was more important than the actual amount of butter New Zealand was allowed to sell in Britain, said a top E.E.C. politician yesterday. He is the Danish Agriculture Minister, Mr Bjorn Westh, who will chair the decision-making Council of Agriculture Ministers later this year when it debates New Zealand's butter access to Britain.

“It is very important that we manage the (world) market in a responsible way. Perhaps this question is more important than a thousand tonnes more or less,” he said in Wellington.

New Zealand and the E.E.C. are the world’s biggest butter exporters. Mr Westh would not predict the outcome of the expected battle over the recommendation of the E.E.C. Commission that New Zealand be allowed to sell 89,000 tonnes of butter in Britain next year, down-from 92,000 tonnes this year and 94,000 tonnes last year. Ireland and France, in

particular, are expected to push for a much bigger reduction, but Mr Westh said while the access questions were "always difficult” this year would be no more so than usual.

The question was not simply one of quantity, New Zealand would be expected to share the decline in the size of the British market, which was affecting all E.E.C. butter producers. The issue is theoretically to be decided by October 1 but Mr Westh said that while he had promised the Government to try to push it through urgently, it was unlikely to be decided until the October meeting of the Farm Ministers.

Officials will complete the proposal in September, and it will go to the Ministers’ meeting late in the month.

Mr Westh declined to predict what sort of longterm access New Zealand could expect after the present three-year term expires at the end of 1983.

But he said he expected that the Community’s desire to preserve good relations with New Zealand and its desire to see the world mar-

ket “responsibly" organised, would ensure continuing access.

It was “very important” that New Zealand and the E.E.C. co-operate with information on third markets and that there be no attempt to undercut prices. On lamb, Mr Westh said he expected New Zealand’s exports to Europe would come up for review in 1984.

He had pointed out to the Government and producer boards that New Zealand had not sold its full entitlement in the Community, although, he denied to reporters that this meant the Community would try to peg the entitlement to the actual amount sold.

New Zealand has traditionally taken the view that the “quota” for lamb represents a ceiling, rather than a specific commitment to supply that amount.

Mr Westh has visited farms in Waikato, Hawke’s Bay, and Bay of Plenty during his four-day visit. He said the trip had been “very helpful” in heightening his awareness of New Zealand’s dependence on E.E.C. markets.