Sep 23, 1988
DAIRY CARTEL RAISES MINIMUM PRICES.
GENEVA, SEPTEMBER 21 (IFDA) -- The GATT operated dairy cartel, the international dairy arrangement, for the second time this year has raised minimum export prices of all dairy products covered by the arrangement. The price raise is attributed to improvements in the world market conditions, and the successful efforts of the participants to cut production and reduce supplies. The cartel had similarly raised prices in March of this year. The minimum export prices for skimmed milk powder and buttermilk powder have been raised from 900 dollars to 1.050 dollars per metric ton, and that for whole milk powder from 1.000 to 1.150. The minimum prices for anhydrous milk fat was raised from 1.325 dollars per metric ton to 1.500 dollars, and that for butter from 1.100 dollars to 1.250 dollars. The prices for some varieties of chess were similarly raised from 1.200 dollars to 1.350 dollars per metric ton. Al prices, to take effect from noon of September 21, are FOB (Free on board). The dairy products arrangement was concluded in 1979 as part of the Tokyo round, and has 16 signatories: Argentina, Australia, Bulgaria, the EEC, Egypt, Finland, Hungary, Japan, New Zealand, Norway, Poland, Romania, South Africa, Sweden, Switzerland and Uruguay. All except Egypt are milk producers, and export their surpluses. According to GATT data, the prices of skimmed milk powder this year has risen from a range of 750-900 dollars in April 1987 to the current 1.500-1.700. World skimmed milk powder production is estimated to have fallen by 11.5 percent this year, and milk production itself by about one percent, the first time in 20 years. A major factor in the fall in production has been the EEC’s action n reducing by 5 percent milk deliveries (production) in 1987.