BUTTER DUMPING

Press, Volume C, Issue 29513, 13 May 1961, Page 13

BUTTER DUMPING

Criticism By Mr Overton

Dumping of butter and heavily subsidised production in countries which were underselling New Zealand on the London market were criticised by the chairman of the dairy section of North Canterbury Federated Farmers in his report to the annual section conference. “Apart from the familiar word ’dumping,’ it is interesting to note that Britain has made great strides in her effort to be self-supporting,” Mr Overton said. “Each person is taxed between £5 and £6 to subsidise the farmer, as much as £2Bsm a year. “Britain is now very well farmed, thus helping greatly towards supplying her own needs. She is now the only open market free of tariffs, and in the scramble to gain urgent overseas exchange nearly every dairying country is pouring both butter and cheese on to this market at the expense of paying heavy subsidies in their respective countries. “France, for instance, is selling butter on her local market for approximately 6s per lb, and selling on the London market at approximately 2s 6d. “Australia, one of the worst offenders, subsidised her own industry to the extent of £ 13.5 m last vear, sold butter on her local market at 5s 2d per lb, only to sell in London at 2s 8d per lb—all this to urgently gain those overseas funds. “New Zealand has an agreement that Britain will take all her dairy produce.

which holds until 1967. On the other hand. New Zealand cannot continue in competition with butter being dumped at 250 s per cwt. and lower. To break even with butterfat fixed at 32d per lb in New Zealand, we would need to sell at 315 s per cwt. in London.

“Should Britain join the European Common Market it seems inevitable that quotas would follow, which in turn would create a terrific blow to the dairying industry in New Zealand.”