BUTTER AND QUOTAS

Taranaki Daily News, 8 March 1935, Page 11

BUTTER AND QUOTAS

AUSTRALIA PREPARING. EXPORTS SHOW EXPANSION. Preferential duties or quotas can be imposed by Great Britain on Dominion dairy produce after November 15, 1935 under the terms of the Ottawa agreements. According to .an Australian report, the Commonwealth is now preparing to fight the quota issue just as meat quotas have been resisted. The report states that negotiations on matters affecting the Australian dairying industry will take place between the Commonwealth Prime Minister and representatives of the British Government during the visit of the Commonwealth delegation to London. If, as is expected, the British Government suggests the imposition of a quota system to restrict the increasing volume of Dominion butter into the British market, the stand taken by the Federal representatives will re-echo tile fight against the principle of restriction which marked the whole course of the meat negotiations between the two Governments.

Exports of butter from Australia to Great Britain this season have increased at an unprecedented rate. From July 1, 1934, to February 23, the increase was 7807 tons, or about 12 per cent above the export for the corresponding period of the 1933-34 season. A comparison with New Zealand shipments shows that the Australian increase has practically offset the decline in New Zealand exports caused by dry conditions. Exports from New Zealand to Great Britain from August 1, 1934, to January 31,

1935, totalled 69,298 . tons,. against 75,713 tons in August-January, 1933-34. The Australian shipments were 63,478 tons, compared with 58,193 tons, making the total Dominions’ shipments 132,776 tons, compared, with 133,906 tons last season. Expansion in, the Australian trade is due chiefly to a favourable season, but it is evident that the high internal price for butter (about Is 3d per lb.) fixed under the stabilisation scheme has resulted in a decline in sales within Australia, thus increasing the amount available for export. It is claimed that sales of butter in the industrial centres have dropped by one-third. At the same time, sales of margarine have increased, and it is now proposed to place an excise, duty on this commodity.