Developing New Markets For New Zealand Dairy Produce

Wanganui Chronicle, 22 April 1950, Page 5

Developing New Markets For New Zealand Dairy Produce

WELLINGTON, Last Night (PA). —The following statement has been issued by Mr. W. Marshall, chairman of the New Zealand Dairy Products Marketing Commission, on the marketing overseas of butter and cheese. “The policy of the Commission I wouW have been obtained if the prois to sell in as many countries as l had b?Pn sold at United Kingdom „ .11 | . • ...... (contract rates. possible, and to spare no effort to < <ln the nrpsent spason salps tft

develop new markets. Th»e quantities available for other countries come under two headings:

“(a) Colonial and other allocations, where if sales are made, quantities come out of the percentage of exports contracted to the United Kingdom Ministry of Food, which is now 97 per cent. “(b) Free allocations, now being 3 per cent., reserved for other markets.

“In the first four years of the guaranteed price under national marketing by the Marketing Department (193637 to 1939-40), the average sales to markets outside the United Kingdom were about 3,000 tons of butter and 80 tons of cheese. Sales were made in 12 different countries. During the war years the whole exportable sqrplus was sold to the United States and sales to other countries were not. resumed until 1947-48, the year in which the Commission was set up. During this season the quantities were: 2044 tons of butter and 664 tons of cheese. In the 1948-49 season the quantities were 5212 tons of butter and 2721 tons of cheese.

“These were distributed through over 40 countries and the proceeds yielded an equivalent of £1,250,000 (N.Z. currency) in hard currency and £500,000 (N.Z. currency) more than

“In the present season sales to March 31, 1950, have been made of 5187 tons of butter and 5005 tons of cheese, again spread through over 40 different countries. They include 597 tons of dry butterfat or “ghee” to Pakistan, 375 tons to the Middle East and further sales are expected before the season ends.

“This is entirely a new development and one being actively pursued. The proceeds of sales already made will yield £475,000 (N.Z. currency) more than would have been obtained at United Kingdom contract rates and the equivalent of £BOO,OOO N.Z. in “hard” currencies.

“Included in this year’s exports are 2500 tons of cheese to the U.S.A, mainland and 500 tons to Germany, 2000 tons of butter to France and 600 tons to Italy. Somewhat greater quantities could have been sold had they been available, and an endeavour will be made to arrange next season for larger reservations. “Sales are made mostly through established commercial agencies, and every possible effort is being made for maximum diversification of markets. It appears likely, however, that of the foreseeable future we must depend on the United Kingdom market for between 75 per cent, and 80 per cent, of our butter production, and from 85 per cent, to 90 per cent, of our production of cheese.”