N.Z. group playing part in plans for E.E.C. butter pile

Press, 21 February 1987, Page 2

N.Z. group playing part in plans for E.E.C. butter pile

NZPA staff correspondent London

New Zealand interests are negotiating a revolutionary deal with Europe which would use a scientific breakthrough to turn a large chunk of the E.E.C. butter surplus into cosmetics and a diesel fuel additive.

■ The.. proposal,, which, would go a,long,,way to, removing the huge European daily surplus overhanging the world market, has been discussed by the New Zealand Liquid Fuels Management Group in Europe in recent weeks. Brussels officials said yesterday that the Liquid Fuel Management Group was negotiating with European bureaucrats and business to use hundreds of thousands; of tonnes-of the 1.31 million tonne v. WW - tmbuntain. The butter would be processed at European plants with which the group has had recent discussions. New Zealand scientists

have developed a process for breaking down animal fats including butter, diplomats told NZPA. It leads to the production of ethyl alcohol — which can be added to diesel fuel, reducing noise and pollution and increasing mileage — and glycerol, a grease base used in cosmetics. Senior E.E.C. officials are, delighted with the prospect of slashing surpluses over the iiekt two years and helping end unpopular, cut price sales to the Soviet Union, according . to observers in Brussels. Should New Zealand come up with a way to reduce the burden of the stockpile on Europe there would also be considerable political kudos for Wellington. Prices being discussed are 35c to 51c a kilogram, according to sources ip Brussels. A condition set by the E.E.C. for the sale was that it must earn more than butter disposed of cheaply for animal feed — about 31c a kilo-

gram. New Zealand diplomatic sources in Europe confirm they have assisted the fuels group in getting in touch with the European Commission, the Brussels bureaucrats who administer the E.E.C. The New Zealand Liquid Fuels Management Group is a corporatised organisation Which succeeded the Liquid Fuels Trust Board;! a quasi-Gov-ernment body. One diplomat said, “My understanding is- that apart from the commission they were talking to industrial and commercial organisations in Europe.” Officials say the new process could prove to be the only outlet for more than 350,000 tonnes of salted butter in British and Irish intervention stores. They are glad the , processing uses a rancid process because the butter could be taken out of European cold stores which cost several million dollars a day to run.