FOR PRESS NO.
BRITISH BUTTER MARKET SITUATION
( Statement by the Acting Prime Minister and Minister
for Trade, Mr. J. McEwen)
The Acting Prime Minister and Minister for Trade,
Mr. J. McEwen, commented today on the British Government's
announcement of the immediate action it was taking to increase
supplies of butter in the British market over the next few
months. Mr. McEwen recalled that imports of butter into
Britain were regulated under a quota system which was designed
to ensure that butter was sold in Britain at reasonable prices
and that the unduly depressed prices which producers in exporting
countries had suffered from time to time would be avoided.
Mr. McEwen said that as a result of the introduction
of quotas the price of Australian butter ex store London had
been steady at about 314/-stg. per cwt. for some time. This
price was, of course, very much more satisfactory than the
level of 247/-stg. per cwt, which applied before the operation
of the quota system. The increase is worth more than million
by way of extra returns to the Australian dairy indujtry for
a full year's exports.
Mr. McEwen said that over recent weeks the butter
supply position in Britain had tightened and this had been
reflected in quite significant price increases. The price
of Australian and New Zealand butter had increased last week
by 20/-stg. per cwft. and qr'otations for European butter
had risen even more steeply.
It appeared, the Minister said, that this development
in the market arose principally from the adverse affect
upon European butter production of the severe conditions of
last winter and the lateness of the spring. The British
import trade was apparently working on the basis that some
European butter exporting cotzntr'ic L x: uld be unable to supply
their full quotas into the British market.
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Mr. MoEwen said it was difficult to forecast
whether the current tight supply situation would continue.
Much would, of course, depend upon the extent to which production
in European exporting countries, throughout the full quota
year ra1nning through to next March, had been influenced by the
climatic conditions. The British Government had taken the view,
however, that supplies within existing quotas would continue to
be very tight over the next month or two. It had accordingly
arranged that Ireland would ship up to 5,000 tons of butter over
and above its quota, provided this amount was available fo~ r
import into the U. K. before the end of August.
Mr. McEwen said that the British Government had
indicated a few days ago its intention of permitting the
importation of this Irish butter over and above the Irish
quota. He had made known to the British Government that whilst
the Australian Dairy Produoe B#" ard naturally regulated its
shipments to the U. K. on a basis compatible with its marketing
opportunities within its annual quota, additional supplies of
Australian butter could be made available speedily. He had
also made clear the Australian Government' s view that in a
situation where additional supplies over and above quotas were
required, such additional requirements should be allocated on
an equitable basis among those quota holding countries in a
position to supply. He had, therefore, sought consultations to
review the current and prospective situation in the British
market and the sources from which additional supplies should
be obtained if the circumstances warrant it. It was expected
that consultations between British and Australian authorities
towards this end would take place within the next few days.
Canberra, 57/ 63T.
Sunday, 16th June, 1963.