N.Z. DAIRY PRODUCE

Wairarapa Times-Age, 26 August 1940, Page 9

N.Z. DAIRY PRODUCE

NEW CONTRACTS MADE SALE TO UNITED KINGDOM. NO ALTERATION IN PRICES. (By Telegraph—Press Association.) WELLINGTON. This Day. New contracts to replace last year's agreements with the United Kingdom for the sale of New Zealand butter and cheese covering the Dominion’s exportable surplus for the current production season were announced on Saturday night by the Minister of Marketing. Mr Nash. Prices for the 1940-41 season’s output are to be the same as those for last year, but the new contracts cover the sale of greater quantities of both butter and cheese. The United Kingdom Government has agreed to take this season 120,000 tons of butter and 107,000 tons of cheese, compared with 115,000 tons of butter and 84,000 tons of cheese last year. In addition, though it is not embodied in the agreement, an understanding has been reached that the general arrangements for the purchase of New Zealand dairy produce will continue for the duration of the war, and a subsequent period to be agreed upon, and that, though specific quantities are named, the Ministry of Food will take as nearly as possible the maximum surplus production of the country. Prices are to be determined by negotiation in May of each year.

Mr Nash said that the new dairy produce agreements were concluded last Thursday after final consultation with the chairman of the New Zealand Dairy Board. They reflected to a degree the major developments in the war- situation that had occurred since the original agreements were announced last November. The German invasion of Denmark and Norway eliminated the supply of dairy produce to the United Kingdom, not only from these two countries but also from Sweden, Esthonia, Latvia and Lithuania. The invasion of the Netherlands and Italy’s subsequent entry into the war further eliminated the only supplies of imported cheese available to the United Kingdom outside the Empire. “Thus, in the first six months of this year, approximately 225,000 tons of butter and 15,000 tons of cheese were diverted from the United Kingdom, making it necessary for practically the whole of Britain’s import requirements of dairy produce to be supplied by Empire countries,” the Minister said. “Fortunately, prior to the outbreak of war, New Zealand, Australia, and Canada between them were already supplying the major proportion of the United Kingdom’s imports of butter and cheese, but after June this year the necessity for increased supplies from the Dominions was obvious.

There were certain important provisions not embodied in the agreements but recorded in letters exchanged between the United Kingdom and New Zealand Governments, Mr Nash said. These included continuation of general arrangements for the purchase of dairy produce for the period of the war and a subsequent period, and the acceptance by the Ministry of Food of as nearly as possible the maximum exportable quantity, prices being determined by negotiation each May. Other points recorded covered discussions in the event of condition preventing the United Kingdom carrying out the contract, notification by New Zealand as early as possible of future expansion of butter production, and discussion of marketing arrangements after the war. The Minister said that these points were actually part of the new agreements. though not specifically mentioned in the text.

“On the question of prices, the New Zealand Government had no desire in existing circumstances to exert pressure for increases on the figures arranged for last' season’s butter and cheese,” Mr Nash said. “This was also the declared attitude of the Australian Government. It is further known to be the attitude supported by the dairy farmers of both New Zealand and Australia. The prices for the 1940-41 season’s butter and cheese are, therefore, the same as those for last season.” The Minister said that, commencing with shipments from September 1, 1940, the quantity of butter contracted, for was 120,000 tons from the production of the season ending on July 31, 1941. In addition, there was the stipulation by the Ministry of Food that, subject to shipping being available, the Ministry would do its best to ship additional quantities available for export within the limit of its responsibility for providing ships, and tentative shipments, schedules for next season had already been arranged. The prices were: —Butter —Creamery finest, 93 points and over, 112 s 6d sterling per cwt delivered f.o.b. ocean steamer; creamery first, 90 to 92-i points, Is 3d per cwt less; creamery second, 5s per cwt less; whey, first grade. 8s a cwt less; whey, second, 12s a cwt less. Cheese —Finest and first grade, 91 points and over, 64s 3d sterling per cwt delivered f.o.b. ocean steamer; second grade, 2s per cwt less. “Payment is to be made in London in respect of 90 per cent as soon as il is placed on ship and in respect of 10 per cent within 28 days after arrival," the Minister said. “In the case of the steamer being lost this latter payment is to be made within 28 days of the estimated due date of arrival. In the event of delay to shipments owing to the inability of the Ministry to provide ocean-going ships, the Ministry undertakes to make payment on account equal to 50 per cent of the value of any butler which has had to remain in cold store a month longer than would have been required by shipment schedule. These provisions apply also in respect of the cheese agreement, and that is an advance on last year’s agreement.”