E.E.C. overproduction of milk ‘ridiculous’

Press, 31 January 1984, Page 27

E.E.C. overproduction of milk ‘ridiculous’

NZPA staff correspondent London The E.E.C.’s over-produc-tion of milk is a “ridiculous state of affairs,” says the British Minister of Agriculture, Mr Michael Jopling. “We have to take very firm steps indeed to deal with this over-production,” he told NZPA. Mr Jopling who will visit New Zealand in February, said decisions had to be taken urgently to ensure the E.E.C. did not continue “in this ridiculous way” to produce huge surpluses. “I have always said that farmers more and more seem to be understanding that they do not have a God-given right to produce more and more food which we can neither eat at home nor sell abroad,” he said. “That is a basic truth, and as we are clearly doing that we must put a stop to it as soon as possible.” The E.E.C. could not dispose of much more than 97 million tonnes of milk a year, but production in 1983 was up to 103 million tonnes and estimates for this year put the total at 106 million tonnes. “Clearly this is a ridiculous state of affairs,” Mr Jopling said. Britain believed the most effective way to deal with this was through prices and guarantee thresholds. But the rest of the E.E.C. might not accept a reduction in prices and Britain might have to think “a good deal more seriously” about the E.E.C. Commission’s proposals for introducing a super levy on milk production, Mr Jopling said. The original proposal was for a levy of 75 per cent on all production above the 1981 figure plus 1 per cent — a total of about 97.2 million tonnes. But Mr Jopling said that this could cause immense difficulties because of changes in dairying since then. Britain believed there would be fewer anomalies if a super levy was based on 1983 figures. The super levy proposal has been strongly attacked by Ireland which says it could be particularly tough on Irish dairy farmers. The Irish Agricultural Minister, Mr Austin Deasy, has said that he would not agree to the proposals for continued imports of New Zealand butter until the threat of a super levy was removed. The Irish want their farmers exempted from the leVy, but Mr Jopling said Britain was strongly opposed to making exceptions and took the view that a levy must apply to everyone. Mr Jopling’s visit to Australia and New Zealand, where he will arrive on

February 18, comes between two meetings of E.E.C. Agriculture Council in Brussels. New Zealand butter imports are expected to be on the agenda for the first meeting on February 6 and 7. Ministers agreed at their December meeting to a two-month roll-over which would allow sales to the United Kingdom to continue until the end of February. Describing this as “the first skirmish,” Mr Jopling said the roll-over had been achieved only with a lot of difficulty. Britain took the view that there was no case for linking continued butter imKjrts with a reduction in ew Zealand lamb imports as the French want. New Zealand had already had a big reduction in its butter sales to Britain. “I do not think there is any justification for asking New Zealanders to put up with a reverse over sheepmeat exports to the Community in return for having what would be a less bad solution for butter,” Mr Jopling said.

He would like to see agreement reached on continued butter imports as soon as possible “quite separately from anything else, but it may not be possible to do that.” Mr Jopling said the E.E.C. had to learn to live together satisfactorily with its competitors in world markets.

The worst thing that could happen would be a trade war between the E.E.C., the United States, and countries such as New Zealand.

“That does nobody any good,” Mr Jopling said.

“None of us can win it. The only people in the end who would benefit, I guess would be the Soviets.”

During his New Zealand visit Mr Jopling will visit a

meat processing plant, dairy factory and dairy farm in Taranaki, see a hill country farm on his way to Wanganui, and have meetings in Wellington with Federated Farmers and producer board heads. He will have talks with the Acting Prime Minister, Mr Maclntyre, and the Minister of Foreign Affairs and Overseas Trade, Mr Cooper. In Nelson, Mr Jopling will look at the fishing industry and visit an orchard before flying to Queenstown. A visit to a sheep farm in the Winton district will be

followed by a call at the Invermay ’ Agricultural Research Station before he leaves on February 25. Mr Jopling, a former Conservative Chief Whip, was a member of the council of the National Farmers’ Union in Britain. He raises beef cattle and grows wheat, barley and peas on his farm in North Yorkshire. Mr Jopling’s son, Nicolas, who is on the farm, spent some time in New Zealand in 1980 after he left school, before going to college to do an agriculture degree.