BUTTER STABILISATION

Poverty Bay Herald, Volume LXI, Issue 18398, 16 May 1934, Page 2

BUTTER STABILISATION

AUSTRALIAN PLAN PRICE FIXED AT .140/- PER CWT SYDNEY, May 2. Ail explanation of the dairy produce equalisation plan and its requirements was issued to-day by the secretary of tho Commonwealth Dairy Produce Equalisation Committee, Limited, Mr. George Twohill, in a circular letter addressed to Australian butter manufacturers. It set out that the equalisation plan would operate from to-day, and that tho directors had agreed that for May <ls per cent, of the butter should be consumed locally and 55 per cent, exported. It was confidently expected that the Commonwealth and State Governments would 1 accept and apply these quotas. Tho Australian price of butter for equalisation purposes had been fixed at 140 s a cwt. as from May 1. The company had decided that the ordinary allowance for export for the time being would bo at, the rate of 12s a cwt. It was proposed that a circular should be issued on the last day of each month furnishing manufacturers with estimated quantities and values on the various markets. Further assistance to manufacturers would be the declaration of quotas by the Commonwealth and State Dairy Boards. These would he made known in the month before which they would apply. The London price authority for the time being would be the Australian Dairy Produce Export Board. For the present the administrative levy would be 2d per cwt. on all butter manufactured, and tho company had also decided that the reserve levy would be at the same rate. The interim advance payment for the time being would be fixed at 30s a cwt., applying only to the quantity sold locally in accordance with the quotas obtaining at the time. Mr. Twohill added that it was pleasing to report that very few manufacturers in the States of Queensland, New South Wales' and Victoria had failed so far to sign the equalisation agreement, and il has been indicated that those outstanding might be expected to accept the agreement without further delay. A similar assurance was forthcoming in respect of Tasmanian manufacturers. In any event, with quotas operating which would provide that manufacturers secured only an equitable share of Die local market, there was no advantage to bo gained by refraining from entering into an agreement with the company. The term of agreement had been reduced to eighteen months for the reason that an assurance had been given to the board that if the reduction were made influential opposition to the equalisation scheme, Governmental and otherwise, would be withdrawn.