HIGHER PRICES FOR CHEESE

Wanganui Chronicle, Volume 85, Issue 221, 19 September 1941, Page 6

HIGHER PRICES FOR CHEESE

NEW PURCHASE AGREEMENT WITH BRITAIN PRODUCTION OF BUTTER LIMITED (P.A.) Parliament Bldgs., Sept. 18. Details of the United KingdomNew Zealand agreement concluded toward the end of last month for Un.' purchase of dairy produce from Ihe Dominion were given by the Minister of Marketing, Hon. J. G. Barclay, today. Addressing the annual conference of the New Zealand Daily Board the Minister said that for butter the agreement provides that for the duration of the war and one year thereafter the New Zealand Government and the industry will aim to limit production for export to about 113,000 tons yearly, this figure to be reviewed annually in the light of the storage and shipping positions. The United Kingdom undertakes to purchase annually for the period or the war and one year thereafter up to 160,000 tons of cheese. In recognition of the increased costs associated with the production of up to 160,000 tons of cheese the United Kingdom has increased the price of cheese for the 1941-42 season by 5s 9d sterling a hundredweight.

Surpluses Agreement. The 115,000 tons of butter did not represent the quantity that the Uited Kingdom Government would undertake to lilt in any given year, said Mr. Barclay, but the obligation of that Government under the general surpluses agreement which was concluded some months ago. That meant that if part of the quantity could not be lilted the two Governments would share in financing and storing the balance, present indications were that the maximum for this season would be about 90,000 tons. Consequently, butler, with meat, remained in the general surpluses agreement. If the cheese could not be lifted each year- the United Kingdom woul I make payment for 50 per cent, of the value of all cheese held in store one month longer than required by the shipping schedule. For cheese held in store three months longer than the shipping schedule 40 per cent, would be paid, making 90 per cent, in all. The remaining 10 per cent, would be paid when the cheese was shipped. In the event of unexpected shipping difficulties the United Kingdom reserved the right to review the position.

A third point in the agreement provided for a purchase price of 70s sterling a hundredweight for the cheese contract for 1941-42. This represented an increase of about 7s New Zealand currency. This was to meet the cost of producing extra cheese and the New Zealand Government would create a special fund from which any additional cost could be met. Many of the costs could not be determined until the end of the emergency period. Special Account. Mr. Barclay said the increase in the price would be paid into a special account and he would discuss any balance left at the end of the emergency period with the industry. Mr. Barclay said a contract had also been arranged for the export of milk products. The contract provided for the purchase of 6500 tons of skimmilk powder at 136 5s sterling a ton and about 2000 tons of vaporated milk at 19s 9d sterling a case. He mentioned that the latest information regarding the export of baconer pigs was that the United Kingdom Government would purchase 11,000 tons during the third year of the war. Conditions were still being discussed, he added.