New Zealand Cannot Earn Many Dollars

Chronicle (Levin), 30 September 1949, Page 3

New Zealand Cannot Earn Many Dollars

WBJUbJLNGXUJN, sept. ZU. There is at present no prospect of New Zealand being able to sell dairy produce in the United States. Present ludications are that it is going to be •difficult for New Zealand to earn as inuch hard cuxrency from dairy produce this season as it did last. These points were set out by the chairman of the New Zealand Dairy Products Marketing Commission, Mr. William Marshall, in a statement today.. The statement follows comment made in several quarters about the prospect of greater dollar earnings from dairy produce. Mr. Marshall said that when 'efl route to the United Kingdom this year in eompany with Mr. F. P. Walsh, they had made inquiries as to the prospects for trade this year and had come to the eonelusion that there was likely to be a surplus of dairy produce produced in America over and above their domestie requirements. Since the announcement of the devaluation of sterling, inquiries had been made through. both official and commereial channels. "We are inf-ormed that import licences into America are not being Lssued and that it is unlikely they will be issued," he said. 4 "The Government 's support prices are operating in the U.S.A. for butter, cheese and processed milk, Already the U.S. Government has purchased at support prices over 30,000 tons of butter hnd over 120,000 tons of milk powder, together with a small quantity of cheese. "During the past season the commission sold butter and cheese for hard curroncy to the value of £1,260,000 but present indications are that it is going to be difficult to reach this figure during this season. The commission is, however, inaking every possible effort to sell for hard currency quantities to be .reserved for sale to other marketSj. in contract with the United Bangdom.,, Dealing with the position in the United Kingdom, Mr. Marshall said it was eorrect to say that butter consumption had fallen from 502,000 tons per annum before "the war to 278,00-' tons in 1948 but this was all the butter that could be obtained by Britain during 1948 and they would gladly have purchased more had it been available. A significant fact, however, .was that m rgarine consumption had risen from lt >,000 tons fper annum prewar to 409,000 toi(.s in 1948. It was not cor"ect to say that butter might have to tce eompetition from margarine Bellmg at 5d per lb. The commission 's estimate of the position was that if t^day butter and margarine were both sold unsubsidised in the United Kingdom, table margarine would be available at ls 2d to ls 3d per lb and 2s 6d per lb would be necessary to cover the i cost of New Zealand b-tter at the price now being paid by the Ministry of food. "While we are protected for the time being under a coni."act which runs to July, 1S35, there is ;ause for long term concsrn from eompetition with margarine, particul: ly if costs are not kept down in New Zealand," Mr. Marshall said.