ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(81)640
Vol.1981/0193

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(81)640 final
Brussels,10November1981
REPORTFROMTHECOMMISSION TOTHE
COUNCIL
ontheimplementation ofRegulation (EEC)No1655/76extendingthe
transitional arrangements fortheimportofNewZealandbutterinto
theUnitedKingdomduringtheyear1980
r ;
.V,V"
COM(81)640final
4

I. INTRODUCTION
1.Pursuant 'toArticle 7oftheCouncil Regulation No1655/76
this report describes the conditions under which theimport of
New Zealand butter into theUnited Kingdom during thecalendar
\
(
year 1980 hasbeen administered .
(l)Regulation (liEC)No1655/76oftheCouncil of29June 1976 extending the
transitional arrangements fortheimport ofNewZealand butter into the
United Kingdom (O.J. Ll85 ?9»7»197 6,p.l)»

2.
II,QUANTITATIVE ASPECTS
2*InaccordancewithArticle1(l)and(2)ofRegulation (EEC)
No.,1655/76,theUnitedKingdomwasauthorizedtoimportfrom
NewZealand,115,000tonnesofbutterduringthecalendaryear
1980.
3.ThetotalquantityofNewZealandbutteractuallyimported(debonded
during1980)was95,000tonnes,astneresultofNewZealand's
agreementtoreduceitsentitlemeat by20,000tonnes.
4.On1January1980,thestockofNewZealandbutter(debonded)in
theUnitedKingdomamountedto67,524tonnes.
5.-ThetotalquantityofNewZealandbubtersoldontheUnitedKingdom
marketin1980was101,571tonnes(l979:106,638tonnes)
6.On31December1980,thecarryoverstockofNewZealandbutter
(debondedintheUnitedKingdom)amountedto60,945tonneB.
(31December19^9:67,524)*
7.ButterproductionintheUnitedKingdomduring1980increasedby
4.3/°toabout168,299tonnes(1979^l6l,000tonnes)SeeAnnexI.
8.TotalofftakeofbutterontheBritishmarketduring1980isestimated
at333,000tonnes(1979*407,000tonnes).SeeAnnexI.
9.ImportsofbutterfromMemberStatesdeclinedfurtherby19*5.^from
124,996tonnesin.1979to100,572tonnesin1980.SeeAnnexesI
andII..
10.WhiletotalU.K.importsin1980werebelowthe1979leveltotal
butterstocxsheldincoldstoresintheUnitedKingdomalso
decreasedfrom66,000tonnesatthebeginningof1980to63800
tonnessttneendofthatyear.
11.The1980closingstocksofNewZealandbutter(60,945tonnes),were
9.7/0lowerthantheopeningstock(67,524tonnes).Thisoccurred
becausethesalesduringI960were7%higherthanthequantity
imported.
12.In1979a^fid1980thepercentagesharesofNewZealandbutteronthe
U.K.consumptionbuttermar'cetwere27^32.2/orespectively .

3
13.During 19?0 thebutter share oftheyellow fats market decreased ,
from about 50?°toabout 447®according totrade sources while the
market share ofmargarine increased during thqsame period from
48.5 0/£to54.3%
} .
14«nDuring 1980 ,theU.K. exported 79»921 tonnes ofbutter (62,000
tonnes in1979 )»ofwhich 74»&41 tonnes went toother Member States .

4.
HI -HUTT^t PRIC^o -TKK .JPKCLU ,L^VY
lj.During 1980 thespecial lew hasbeen ,based on:
(a)AGIFprice of142.51 &CU/100kgs (117.88 ua)which was
unchanged since 1stOctober 1977 *However onthe decision
.oftheCouncil this amount wasincreased on6October 1980
,•to21J.37 KGU/lOOkgs ,afigure representing 75/°ofintervention
level forbutter of80-82/ofatcontent (284«49 EGU/lOOkgs).
(b) 1On–coi;tsandpackaging costs whicn hadremained unchanged since
1979 .after 6October I960 these costs were considered tooe
1part dftheincrease ofthe GIFprice .
(o)U.K. consumer subsidy of45*94 i^CUper100kgs .forCommunity
butter .
lu»Thespecial levy ofbj.68 j£GU/100kgswhich wasintroduced on
1December 1979 applied until 10October 1980 when ,inline with
thechange intheGIFprice ,anewspecial levy of25.18 ECU/100kgs
was introduced .
This new lev;.' was broadly based onalevel of25/°oftheintervention
price for80–82,sbutter which corresponds to11.12 ECU/100kgs
from which theconsumers subsidy of45*94 KCU/lOOkgswasdeducted .
17»The share ofHew Zealand butter ontheUnited Kingdom market dropped
from ^l.G /oattheBeginning oftheyear toalow-point of14.in
August but t.ieNew Zealand maricet position improved somewhat towards
theend oftheyear toclose atalevel cfJ'J/amarket share .
lt>.atthe beginning oftheyear thequoted list price ofthemain t)rands
ofCommunity producers butter ontneUnited Kingdom market ranged
between £1,045 and£1/9^3pertonne while UewZealand "Anchor "
wascuoted at£1,721 pertonne .ByApril theprice range forthe
other brands was between £iT0^6 and£1»917 Pertonne while the
prise for "Anchor "increased to£1,847 thus narrowing themargin
toabout £60.The list prices remained relatively unchanged until
October ww-ra .prices fox -themain Gommur.i "byorands were increased to
between £1,9^6 and£1,967 pertonne with ".'ir.chor "at£1,847 per
tonne allowing aprice margin of£100pertonne toexist .

5
19»Regulation EECNo1655/76which extended thetransitional arrangements
for importation ofNewZealand butter into theUnited Kingdom
authorised imports up "to "theendof1980 .On30June 1980 the
Commission -submitted totheCouncil aproposal (doc.C0I4 (80)190Pinal ),
containing twoelements ,oneamending Regulation 1655/76forimports
totheendoftheyear 1980 andthesecond relating totheimportation
ofNewZealand butter ,onspecial terms ,into theCommunity after 1980 .
20.These proposals reiterated theCommission 'searlier advice ina
report submitted totheCouncil inAugust 1979 (doc.8832/79of
10September 1979 /COM (79)444Pinal ).This wasthat NewZealand
should reduce itsexports totheU.K. market below theentitlement
given inRegulation 1655/76;that theNewZealand take-home price
should beincreased andmaintained more inline with Community prices ;
and that arrangements should bemade forexports totheCommunity ona
more lasting basis .
21.Because ofthe fact that these proposals ,which would provide a
reduced special levy ,were pending theCommission didnotdeem it
appropriate toadjust theexisting special levy until 10October
when theCouncil decided nottoadopt theCommission 'sfull proposal .
Instead aformula was arrived at . .within theexisting system *
TheCIFpricewasincreased .NewZealandagreedto
areduction of20,000 tonnes (to95,000 tonnes )oftheentitlement for
1980 .Intheabsence ofafinal agreement fortheperiod after its
expiry theoperation ofRegulation EEC1655/76wasprolonged ona
number ofoccasions during thefirst three moryths of1981 when anew
Regulation entering into force on1April '1901 wasagreed .

Diverstfîcat1on
22.Restrictions onaccesstomarketsindevelopedcountriesand
competition forthemarketsofdevelopingcountriescontinuetocontain
NewZealand'seffortstodiversifyitsmarketsfordairyproducts.Soviet
importshavetemporarily increasedandforthepresenttheSovietUnionhas
becomeasignificant marketoutlet,absorbing aconsiderable quantityofthe
world'stradeddairyproducts. c
23-NewZealand'stotalbutterexportsincreasedfrom166,042tonnes
intheyearendedJune1979to177,889tonnesintheyearendedJune1980
(anincreaseof7percent).TheUnitedKingdomwasagainthemost
importantmarkettaking68percentoftotalbutterexports;19%of
exportswenttotheUSSR
andtheremaining 13%todiversedestinations .Inthesixmonths
endedDecember1980butterexportstotheUnitedKingdomtotalled67%
oftotalbutterexports,and15%or*2,307tonneswereexportedtothe
USSR.
24.Exportsofbutteroiltotalled50,664tonnesin1979/80,a94percent
increaseover1978/79(26,159tonnes),Onceagainthemajormarketsforthis
productwereSouthEastAsiaandLatinAmericawhereitisusedinmilk
recombiningplants.ThestatisticsforthesixmonthsendedDecember
1980showsimilarlevelsofexportsasinthesameperiodin1979.
E5.Cheeseexportsincreasedfrom63,368tonn3sin1978/79to69,240
tonnesin1979/80(a9percentincrease),japanremainedthemajor
market,taking22,812tonnesor33percentoftotalcheeseexports,
followedbytheUnitedStates0+Americataking19,506tonnes.Exports
totheUnitedKingdomtotalled4,575tonnes,andweremadeunder
NewZealand'sannualGATTquotatotheEECwhichcameintoeffecton
1January1980.Exportstoothermarketsremainedstatic.Cheese
exportsinthesixmonthsendedDecember1980totalled40,331tonnes,
anincreaseof?1percentonthesameperiodin1979(33,359tonnes).
2v.Exportsofcaseinandcaseinatesin1979/80(65,983tonnes)were
slightlydownon1978/79(67,351tonnes).TheUnitedstatesofAmerica

7.
remainedNewZealand'sLargestmarketforcasein,taking37,317tonnes.N
ThenextLargestmarketwasJapanwhichtook14,885tonnes/anincrease
of27percentoverthepreviousyear.Together,theUSAandJapan
accountedfor80percentoftotalcaseinexportsfroml\lewZealand.
ExportsofcaseinandcaseinatesinthesixmonthstoDecember1980totalled *
28,368tonnes-
♦
Η ^
2]..Exportsofbuttermilkpowderin1979/80at21,194tonnesshowed
areturntonormallevels.ExportsinthesixmonthstoDecember1980
totalled8,613tonnes.
28.Exportsofskimmilkpowderin1979/80were172,435tonneswith
majorexportmarkets,Indonesia,Philippines,Malaysia,.Peru,Japan,
ThailandandMexico.Exportsinthesi'xmonthstoDecember1980totalled
76,227tonnes./
29..Mainexportmarketsforwholemilkpowderin1979/80(July-June)wereMalaysia,
Singapore,Venezuela,TrinidadandTobago,Mauritius,Taiwan,Chinaand
Thailand.ExportsofwholemilkpowderinthesixmonthsendedDecember
1980totalled39,870tonnes (.57%ofpreviousyearsexportfigure).

ListofAnnexes
Development ofbutterproduction,consumption andtrade
theUnitedKingdom.
1980UnitedKingdombutterimportsfromotherEECMember
States,onamonthlybasis.
1980UnitedKingdomweeklyarrivalsanddebondingsof
NewZealandbutter.

-3-ANNEXI
DEVELOPMENT OFBUTTERPRODUCTIOM .CONSUMPTION ANDTRADE
INTHEUNITEDKINGDOM
.1973 1974 19751976 1977 .1978.1979 1980
1.Milkproduction(a) 14,241 13,836 13,815 14,30215,098 15,831 15,82715,416
2.Milkdeliveries 13,705 13,311'13,329 ;13,83814,598 15,317 15,32215,182
3.Deliveriesas>ofproduction 96.2 96.2 96.8 9Ó.896.7 96.8 ν96.898.5
/
4·Butterproduction(b) 97 54,48 90-134 162 161168
5·Totalimports(c) '318 445 •475 404 327 298 246195,5
ofwhich:'
6.EEG 186 326 •364 275.189 173 •125100,5
7.NewZealand 132 119 .111.;129138_125 120 95
8.TotalExports '16 3· 16 11 56 6280
9.Consumption :*(d)-
.-
Household/Catering(e) 409->445 462 441 410\$6'389315
Other(manufacturing )(e)' 24 18 24 18 18" 18 .1818
Totaldisappearance 433 "463 486 459 428 414 407333
(a)Excludesbeef-cows'milkproduction
(b)Includesfarmhouseproduction
(c)Includesbutteroilequivalent
(d)Takesintoaccountstockchanges
(e)Breakdownnotavailablefor1980:
bource:MAFFNos1-3:millionlitres
Nos4-9•'000tonnes

AnnexII
ImportsofbutterintoU.K.1980-tonnes
ι■■ !
FJAN:Fêb.'March.Apri^MayJuneJulyAug.SeptΟΛ;'Nov.•Dec.Total
France 9510428111019192145164193165144148 1,832
Beigium/Lux. 1022723453682422371689312040487121 2,559
NetherLands 1146Ó3682514611618425623495758307421131005 14179
W.Germany 57846559013787425805061243926154614991522 11575
IrishRepublic 1438423Λ9943718308382365402137403056264613292026 30594
DENTRARΛ 309427503107405128644016314940043779356723203132 39833
TOTAL 6453hÓ5C814211Οδό849577158612973988321140274927954 100572
Source MAFF

-ΛΑ-
Ν.Ζ.ΒϋΤΤΕΚ-1980
Η/ΕWeekly -
SaleβCumulative
SalesStocks:Weeklydevelopments Levy
appropriate
JtoweeklylealeβΓ
Calcula
ted
selling
price
equiv·
tolevyActuad
list
price
Ν.Ζ.
butterActual
list
price
U.K.
butterInter-
vent-
ion
price
level
BO^Debonded
StockNon
debonded
stockWeekly
dedond-
ing
NR,Τ/ΤΙ,\(tonnesjtonnes)(tonnes)
67.524(tonnes)(tonnes)ECU/100kgVth/XVTVT
1.5/112461246679753058 –70.30 1747163718471734
2.12/134564702675933058 ·- 1634
3.19/12937763870571 - .3O58/
4.26/131221076167449 -
5.2/228631362468851 - - 1781
6.9/22986166IO67575 -83.68
7.16/216561826665923 -/- -*
8.23/217552002164168 - -
9·1/31997220186466I;- -•
10.8/31'7212373962940437 - ■ 1897
11.15/323722611064802437 --
12.22/316552776565116 -437,
13.29/3,20032976863113 - 1847
14.5/420213178964167 - -
15.12/417243351362420 -■-
I
16.19/415973513365320- -•»
\
17.26/4121636349641041900 -.{
1&.3/5133237681627716557-
19.10/5143239113613408557 --
5-0.17/5130340416600378525 22
21.24/51376417925861112425-
1-
22.31/51558433495710412425-
23.7/614934484355610V13769 -
,1804
24.14/614774632032936 •14273-1
25.21/61278475975285614273 -.
26Á28/61528491255132814273-
27.5/7947500725038114273-
28.12/713275159949054;16291 -
29.19/71253526524780116291 -
30.26/71322539744647919031-
31.2/81614555884486519031-
32.9/81422570304342319031-
33.16/81475595054194820039-
Μ.23/81659601654028820208 -
35·30/8
t1223613883906520208 –i
1-
II 1
; T

VI–D–I -AI-
N.Z.BUTTER-1980
°)110re–exportedoutsideEEC
WeeklyCumulative Stocks:Weeklydevelopments Levy!
CalculaiActualActualInter-
h/ESalesSalesDebonded
StockNon
debonded
stockWeekly
dedond-
ingappropriate
toweekly
salested
selling
price
equiv.
tolevylist
price
N.Z.
butterlist
price
U.K.
buttervent-
ion
price
level
80/to·
(tonnes)(tonnes}(tonnes)(tonnes)(tonnes)|eCU/100kgh/XVtVtVt
ó.6/917486313Ó3731720098°;-
(.13/91Öló649522125735SOI-
3.20/9193460866335Ó72226513236
9·¿7/91812686983293622295-
0.4/1018067050432936229OO-
1.11/102290727943293626O25-
>.16/1027Ö0755783293626798-
i.25/1027727835149020-26798
4.I/1.I225Ó8060746764- --
b/1124818308749502 1310 -
6.15/11260ó85694469861848 -
■7.22/11229587988446911648-
3.29/11197589964427169605-
9.6/122231921946519313201 -
0.13/l23064952594072113200 -
1.20/122803981216439622621093825.18
2.31/123450ιοί571óo945
i
!2622
Í