DAIRY PRODUCE

Wairarapa Times-Age, 18 November 1939, Page 3

DAIRY PRODUCE

PURCHASE BY BRITAIN ARRANGEMENTS ANNOUNCED. STATEMENT BY MINISTER. (By Telegraph—Press Association.) WELLINGTON, This Day. Arrangements made between the New Zealand Government and the British Government for the purchase of the Dominion’s export surplus of butter and cheese were announced by th'e. Minister of Marketing, Mr Nash, in a broadcast address from his office in Parliament Buildings last night. The United kingdom Government is to purchase f.o.b. New Zealand ports, and thus assumes responsibility for provision of ships, freight and other relevant charges. An undertaking has been given by the British authorities tomake a payment on account in the event of delay in shipment because of inability to provide ocean-going ships. After quoting the schedule of prices, Mr. Nash said that in general the result should be that the United Kingdom Government purchase prices for butter and cheese taken together may just cover the guaranteed price paid to dairy companies. A comparison with the prices to be paid for Australian dairy produce shows substantial margins in favour of New Zealand both as regards butter and cheese. The prices are as follow: — Butter. —New Zealand finest grade, 93 points and over, 112/6 a cwt. sterling f.o.b. This price, which is for finest grade, would, after allowing for deductions for lower grades, be equal to an overall average price of approximately 112/3 a cwt. sterling f.0.b., or 139/7;} a cwt. in New Zealand purrency. Stated at a price a lb. f.o.b. in New Zealand currency, the figure is approximately 1/3. First grade butter, 90-921 points, is purchased at 1/3 a cwt. less: creamery second grade at 6/- a cwt. less; whey first grade at 8/- a cwt. less and whey second grade at 12/- a cwt less. Cheese. —New Zealand finest and first grade, 91 points and over, 64/3 a cwt. sterjng f.o.b. This price which is for finest and first grade, would, after allowing for deductions for second : grade, be equal to an overall average price of approximately 64/2 a cwt. sterling f.0.b.. or 79/9 a cwt. in New Zealand currency. Stated at a price a 1 lb. f.o.b. in New Zealand currency, the figure is approximately 81d. Second :

grade cheese Is purchased at 2/- a cwt. less.

“The arrangements are intended to cover the period of the war and probably a suitable period thereafter, during which readjustment from war conditions to normal trading conditions can be brought about,’’ said Mr. Nash. “The quantities of dairy produce included in the contract are likely to be the export surpluses of butter and cheese available for shipment after New Zealand requirements and the requirements of certain other regular markets have ben met, but in respect of production of butter and cheese for the season ending July 31, 1940, the United Kingdom Government has undertaken in the case of butter, commencing with shipments from October 1, 1939. to purchase 115,000 tons at the agreed sterling f.o.b. prices, and in the case of cheese, commencing with arrivals after November 20. 1939. to purchase 84.000 tons at the agreed sterling f.o.b. prices."