higher prices

Greymouth Evening Star, 30 July 1946, Page 3

higher prices

BULK SALES TO BRITAIN

ADJUSTMENTS 'TO. MEET LOCAL COSTS REMAINDER TO BE RETAINED (P.A.) WELLINGTON, July 29. Bulk purchase agreements between New Zealand and the United Kingdom provide for an increase in the prices paid by the United Kingdom this season of 16 1-3 per cent, for dairy produce, 111 per cent, for pig meats, and 7i per cent, for other meats over prices for last season. Prices paid out to producers will be last season’s prices, plus adjustments to meet any increased costs of production, and the balance will be held in stabilisation accounts.

. Contracts for the purchase by the United Kingdom of New Zealand produce have been extended to 1950; and in 1948 a conference will be held to consider the desirability of extending the agreement to cover butter and cheese up to July 31 1952. Prices to be paid by the United Kingdom will be reviewed each year. New Zealand’s right to sell butter and cheese in markets other than the United Kingdom in accordance with an allocation programme, has been agreed to but this question will be reviewed 12 months from now. This information was given by the Minister of Finance (Mr. Nash) this evening. He said that under the con--tf-acts made in 1944 the United Kingdom Ministry of Food agreed to buy New Zealand’s exportable surplus of dairy produce and meat for a period, of four years. At that time prices were fixed for the first two years of the contracts. Butter Price

During his recent visit to London the prices to be paid for the third year (covering the 1946-47 season) were discussed with United Kingdom Ministers and officials, and it was agreed that the price for butter would be 175/-. (sterling) per cwt., compared with 150/6 per cwt. for the last two seasons, with an equated price for cheese. For meats other than pig meats it had been agreed that prices would be 71 per cent, above those ruling during the last two seasons, or 43 1-3 per cent, above the prices fixed in the first bulk purchase contract. The new prices agreed upon for pig meats were' HI per cent, above those ruling during the last two seasons, or 48 1 -3 per cent, above the prices .fixed in the first bulk purchase contract. Mr. Nash said the two years’, extension of the contracts would give added security to New Zealand farmers, and give them an assured basis for’expanding their production to the utmost for the benefit of the people of the United Kingdom. New Zealand’s desire to resume the marketing of her butter under her own brands was strongly represented to the United Kingdom authorities. While setting out the difficulties, of giving immediate effect to this desire, they agreed to endeavour to meet New-Zea land’s wishes in this matterearly in 1947. The United Kingdom government

undertook to give Nev, 7 Zealand reasonable notice when it was proposed to discontinue the rationing of margarine, and would discuss with New Zealand its effect on the marketing ot butter. J , 1 In terms of the agreement entered into in July, 1944, by the United Kingdom and New Zealand Governments, lump sum payments of £4,000,000 annually were being made by the United Kingdom towards meeting the cost of economic stabilisation in New Zealand. These payments would continue for the stipulated period, that was, until July. 31, IJ4B. New Zealand Objective Mr. Nash expressed appreciation ol the assistance given during the negotiations by Mr. W. E. Hale ( c ial L" man of the Dairy Board) and Mia G. H. Grigg (chairman of. the Meat Producers’ Board). The prices as finally determined were reached in agreement with these men who, he understood, were acting in accordance with i recommendations from their icspec-

live boards. . r “The prices agreed upon are m line, with those to be paid in respect ol Australian produce,” said Mr. Nash. “However, the United Kingdom Government has stated that it cannot avoid looking to other countries fo the balance of the United Kingdom s requirements which Australia an New Zealand cannot meet, and in such cases may have no option but to Pa^ h z r ea P S objective in these negotiations has been to secure pei manent markets for. our pioduc s c prices which give a fair return to producers. In accordance with existing agreements, with farm mdustri -> increase in prices Received m New Zealand will be credited to the dany and meat industry stabilisation accounts, where they will be held lor the exclusive benefit of the producers. As in past seasons, the amounts to be paid out to farmers will be governed by costs of production. Mr. Nash said other products upon which discussions took place were wool, which had already been the subiect of an official statement, and hides and pelts, apples, tallow, and evaporated and powdered milk, which would be the subject of Ihter reports.

EXTRA £4,000,000 TO £5,000,000 [N Z.P.A. Special Correspondent.] (Rec 11 20 a.m.) LONDON, July 29. New Zealand will receive an. extra £4,000,000 to £5,000,000 for her dairy produce and meat next year as a result of increased prices agreed upon by the United Kingdom and the New Zealand Governments in revising the bulk purchase agreements as announced by Mr Nash. This estimate is based on the piorhintinn figures for the 1944-4 a seawhfch are the latest available here. Should the production m the 1946-47 season be higher, this will naturally be reflected m the Dominion’s receipts. , . . The increased prices-approxi-rnately 15 per cent, for dairy produce 11l- per cent, for pig meats, and 7 2 - nor cent for mutton, lamb and beef S levels—will be the' coming season, and will be subject io further review next year at the option of either th,e British or the New Zealand Governments. _ Prices how paid by Britain fbi New Zealand foodstuffs are substantially in excess of those prevailing before the war. These for dairy pro"

duce are now about 70 per cent, more and those for meat 43 1-3 per cent, more. By extending the period of the bulk purchase contracts until 1950, New Zealand is assured of a market in Britain during the next four years for the whole of her exportable surplus, subject to the reservation of such quantities for markets other than the United Kingdom as may be agreed upon from time to time. , Britain is also reviewing her bulk purchase agreements with Australia. The Commonwealth, doubtless, will receive prices comparable with New Zealand during the coming season. It is understood-that she will discuss extension of her contracts to 1950 and a later date. _________