BUTTER EXPORTS.

Waikato Times, Volume 114, Issue 19054, 19 September 1933, Page 2

BUTTER EXPORTS.

PROPOSED RESTRICTIONS. VIEWED WITH GRAVE ALARM. STATEMENT BY FARMERS. “In the absence, under present ■world conditions, of other accessible and ‘worth-having’ markets, restrictions of our butter exports to Great Britain must be regarded with the gravest concern, particularly as the position differs materially from that of Our principal competitor, Denmark, where maximum production has already been reached,” states a circular Issued by the New Zealand Farmers’ Union. The circular states that Australia, with her larger population, could probably absorb any potential surplus without much difficulty. As. New Zealand has no exports but those from her land, the imposition of a quota upon the output of butter would prove a disastrous setback to the agricultural development of the Dominion. Free access to the British market must be retained, but some reciprocity must be Offered by New Zealand. Position in Britain. The farmers of Great Britain produce only 10 per cent of the,butter required for United Kingdom consumers, and Britain is therefore obliged to procure the remainder elsewhere. It is alleged the British farmer wants a restriction in volume placed on both Empire and foreign butter to enable him to obtain better prices for his produce, but this is difficult to understand as lew farmers would benefit, since only 15 per cent of the milk produced hi BWtain is made into butter. “A G per cent reduction in imports of butter from Now Zealand would mean a decrease in dairy farming revenue of slightly over £600,00(1, on last year’s export values," the circular stales. Since such a small percentage of Hie milk produced m , Britain is made Into butler and cheese, ami in view of the fact that the price of milk is to be Used, there does not appear to he any valid and urgent ' reason for British farmers wishing to handicap New Zealand through restrictions. They have, however, adopted the attitude that N'nv Zealand is paying a subsidy lo farmers oy raising the exchange rate, thus creating unfair competition. Result of Dumping. i ' One of the proposals made in Britain’, Hint there should be a restriction of G per cent based on the iSUM-33 imports, on those for the following year in the case of New Zealand and Australia, with a 12 per cent limitation of foreign imports, would result in about 20,000 tons of butter being held back in New Zealand. Another scheme would prevent the exportation from the Dominion of fronq i. ; 15,000 to 20,000 tons. If such a huge amount were dumped on the local market, prices would collapse, resulting in poorer London values. It would also entail an Increase of 291 b a head In local consumption, an impossibility, "since New Zealand’s per capita consumption Is already the highest In the world, 401 b a head. "If this quota is imposed, either an era of cheap cakes and pastry will dawn, or, as an extreme measure to keep local prices from falling to ridiculous levels, it might be found necessary, to dump the surplus butter into ihc Pacific Ocean, just as it was found necessary to ’(festroy Brazilian codec by burning—an unwanted plenty • in the midst of poverty,” the circular adds.