Attempt to resolve dairy trade crisis

Press, 15 November 1984, Page 3

Attempt to resolve dairy trade crisis

By

OLIVER RIDDELL

in Wellington

The International Dairy Products Council in Geneva has discussed a draft resolution aimed at resolving the crisis in the international dairy trade. This has been confirmed by the Minister of Overseas Trade, Mr Moore, who said it was part of the Govern-, ment’s strategy to work in co-operation with, the affected countries 'and the Dairy Board. The crisis had been brought about by the decision of the E.E.C. Commission to sell butter to the Soviet Union and Middle East countires below the G.A.T.T. minimum price. The draft resolution had originated during informal discussions in Brussels and Geneva between representtives of New Zealand, Australia, and the E.E.C., the parties most directly involved, said Mr Moore. There had been a sugges-

tion in a Reuters report that New Zealand was prepared, somehow, to condone the E.E.C. actions.

“This is absolutely incorrect,". Mr Moore said. “There is no question of our condoning a flagrant breach of the EJS.C.’s commitment under the minimum price provisions of the International Dairy Agreement” The finding already reached by the agreement’s milkfat protocol committee that the E.E.C. had failed to respect its international commitment had to be included in any resolutions reached.

Mr Moore confirmed that the International Dairy Products Council would reconvene tomorrow after further discussions between senior officials in Geneva. Until then, details of the resolution’ finally agreed would not be known. However, New Zealand’s negotiators would focus on the need to have all parties again respecting the minimum price as soon as possible. They would also seek the co-operation of all parties in strengthening the agreement NZPA-Reuter reported that the European Community has reached agreement with Australia and New Zealand over the “butter mountain.” The understanding was reached at a meeting of the International Dairy Pro-

ducts Council, said a Community representative, Mr Michel JacquoL

The three producers had agreed the Community could go ahead with plans to sell butter below the internationally agreed prices, provided other signatories of the international dairy arrangement could follow suit when their commercial interests were at stake. But trade sources said there might still be objections from other producers in the Dairy Council who fear the scheme would disrupt the international butter market Britain’s retail traders have made it clear they do not like the Common Market’s scheme to dispose of cheap surplus butter, the Minister of Agriculture, Mr Michael Jopling, told the House of Commons yesterday.

In a written reply, Mr Jopling said retailers regarded the special sales as highly disruptive.

“They also consider that such sales over the Christmas period do little to increase consumption which in any case tends to <be higher at that time.” But Mr George Foulkes, Labour’s Shadow Common Market Minister, said, “This is yet another Common Market shambles, typical of both the E.E.C. and particularly the Common Agricultural Policy.”