BUTTER EXPORTS

New Zealand Herald, Volume LXXI, Issue 21793, 7 May 1934, Page 9

BUTTER EXPORTS

AUSTRALIAN QUOTA FIFTY-FIVE PER CENT RATE TO END OF MAY CHEESE NOT AFFECTED By Telegraph—Press Association—Copyright SYDNEY, May 5 An export quota of 55 per cent on any butter produced in Australia during the period May 3 to May 31 was declared yesterday. Under Federal legislation inter-State trade in butter and cheese, except under licence, is prohibited and a licence is granted subject only to the condition that the licensee complies with the export quotas fixed by the Minister of Commerce.

On the export parity of 71s a cwt. no further increase is expected since an increase would permit New Zealand butter to be imported to Australia even after the payment of 6d a lb. duty together with freight and insurance charges. No export quota has been declared yet for cheese.

The Commonwealth Dairy Produce Control Act was proclaimed last Tuesday, when higher prices on the- local market came into effect. The Commonwealth Act, in conjunction with the State Acts, permits the price of butter which is consumed in Australia to be fixed at a level which will compensate dairymen for the reduced prices received for exported butter. Four States —Victoria, New South "Wales, Queensland and Tasmania —are affected by the plan, which replaces the Paterson plan. South Australia and Western Australia have not yet fallen into line. According to previous advice the directors of Commonwealth Dairy Produce Equalisation Committee, Ltd., the company formed to administer the butter equalisation plan in the Commonwealth, decided to fix the wholesale price for choicest butter in Australia at 140s a cwt., or Is 3d a lb. The current wholesale price of butter in Melbourne was 112s a cwt., or Is a lb., so that the new price represents an increase of 28s a cwt., or 3d a lb. The new price represents an increase of 14s a cwt. on the present price in New South Wales or a rise of 1-Jd a lb. The increase is similar in Queensland.

The New Prices for Butter The butter quotas which will apply to the Commonwealth were determined recently. The proportion of butter manufactured to be sold within the Commonwealth was fixed at 45 per cent, so that the export quota was 55 per cent of production. Cheese has been left out of the equalisation plan for the time being, but it is expected that it will be brought in from July 1. The Paterson plan has lapsed with the proclamation of the Act. No levies under the Paterson scheme were paid on butter manufactured after April 25, and the Paterson bounty was paid on exports of butter up to and including April 25. It is estimated that since the Paterson plan came into operation on January 1, 1926, it lias benefited dairymen by approximately £19,000,000. Actually, the new wholesale price of butter became, partly operative in the Melbourne market on April 27 owing to the heavy demand by retailers for supplies at the old price. The new retail price for choicest butter is Is 5Jd a lb. in bulk and Is 6id in prints, the increase being wholly passed on. Some price-cutting has developed and this will probably continue while supplies bought at the old wholesale, price are held. Consideration to an increase .in whole milk prices was given in Melbourne last week. It was expected that retail prices would be increased to 6d 'a quart bulk and 7d a quart bottled. How Stabilisation Plan Works An explanation of the operation of the stabilisation scheme was given last week by Mr. F. H. Stewart, Australian Minister of Commerce. Mr. Stewart said the scheme provided that, with a view to stabilising the butter market in Australia, all butter in excess of a certain quota, to be fixed by the responsible Minister in each State, should be exported from the respective States. Because of constitutional difficulties the State has been unable to stipulate that the surplus must be exported from Australia, and it was to ensure this that the Commonwealth Government's intervention had been sought. All the Commonwealth legislation provided was that butter should not be transferred from State to State by any person unless that person had exported from Australia the prescribed proportion of his output. i Under the State legislation, continued Mr. Stewart, the quotas were fixed by the Minister for Agriculture, and under the Commonwealth law the Minister for Commerce was the authority. It was expected that, as a general principle, the Federal authority would accept the recommendation of the State authority in the fixation of home consumption and export quotas, but it had been clear, when the Federal legislation was being debated, that if there was any tendency toward the exploitation of butter, consumers in Australia appropriate steps would be taken to counteract such action. „ ,

" While neither State nor Federal legislation has any reference or application to the price levels," added Mr. Stewart, "the fact that the supply of butter in Australia is regulated to the anticipated demand provides a circumstance that is favourable to price control by the industry. The Federal Government will watch closely the whole position in the interests of consumers, as well as in the interests of the butter producers."