Alarm in Canada

Manawatu Times, Volume LVI, Issue 7068, 30 January 1933, Page 7

Alarm in Canada

NEW ZEALAND BUTTER INVADES MARKET. FARMERS UP IN ARMS. United Press Association—By Electric Telegraph—Copyright Received Sunday, 10 a.m. OTTAWA, Jan. 27. No action will be taken to binder the importation of 250,000 pounds of New Zealand butter, which arrived in Victoria and Vancouver on Friday, so it was learned in official circles.

The shipment comes in under the regular five cents a pound tariff provided in the Canada-New Zealand Treaty, and will cost the importer half a cent a pound more than the Montreal market price. Wkilo the present shipment is not considered large, the effect further shipments would have on Canadian butter production is being seriously considered by the department here. It is understood that representations have been or will be made to the New Zealand Government to hold back further consignments. The Canada-New Zealand Treaty has provisions by which neither party can suddenly apply dumping duties. The treaty provides that where imports from one becomes a serious injury to tho producers of the other, thirty days’ notico can bo given after which a dumping duty may be applied. The information here, however, is that the Government is optimistic that no such drastic action will have to be taken. The situation in Canada is that there is enough butter in storage to meet tho neods of tho Dominion at least until March, if tho present rato of production is kept up. What is feared in the Department of Agriculture is that if Now Zealand butter is to pour into Canada now the Canadian farmers will stop butter producing, allowing tho cows to go dry. With an abundance of feed and favourable weather it yould bo very beneficial for the farimng industry if prices could bo kept to a point where butter production through the winter would give tho farmer suitable returns.