Govt reacts sharply to butter critic

Press, 28 October 1982, Page 3

Govt reacts sharply to butter critic

PA Wellington The Government yesterdayreacted sharply to criticisms of New Zealand concern about the sale of United States dairy surpluses made by a visiting American official.

The Minister of Foreign Affairs and Overseas Trade. Mr Cooper, said those who knew the international dairv trade had "no doubt" that United States surpluses could "seriously disrupt the international dairy market.”

Mr Cooper said the "expressions of opinion" by a United States Department of Agriculture official. Mr Bryant Wadsworth, gave an “incorrect impression" of the likely impact on New Zealand of United Slates exports. "I note that even this official, whose department is a prime mover in the campaign to export these high surpluses, admits that sales of United States surplus butter and cheese on the very limited international market would cause prices to fall, possibly even below the G.A.T.T. minimum prices which are. of course, verymuch lower than current prices ruling on the international market."

Mr Cooper said that New

Zealand had emphasised these factors to the United States Administration for several years and would continue to do so. "We remain confident that the United States Administration will wish to put its own house in order with domestic give-away programmes to needy' Americans and other forms of noncommercial disposal, rather than threatening a market which represents some 20 per cent of New Zealand's export earnings." New Zealand and the United States were both trying to integrate farm trade into the open international trade system and the problem of ’ subsidised agricultural exports was recognised as a priority issue, Mr Cooper said.

The chairman of the DairyBoard. Mr J. Graham, yesterday took issue with Mr Wadsworth.

The latter's proposition was "dubious, at best." said Mr Graham.

"The part of the international market for butter where access is free is only 200.000 tonnes,” he said. “The effect of dropping an extra 100.000 tonnes on to that market can be readilyperceived."

Earlier report, page 7