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COM (83) 616 
 
 
 
 
Vol. 1983/0 227 
  
 
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concernant l'ouverture au public des archives historiques de la Communauté économique 
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the opening to the public of the historical archives of the European Economic 
Community and the European Atomic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
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file have been declassified in conformity with Article 5 of the aforementioned regulation. 
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 1983 über die Freigabe der historischen Archive der Europäischen 
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COMMISSION OF THE EUROPEAN COMMUNITIES
*
COM(83) 616 final
Brussels, 10th October 1983
REPORT FROM THE COMlilSSION TO THE COUNCIL
on the functioning of the arrangements relating to the import  
of New Zealand butter into the United Kingdom on special terms  
during the years 1973 to 1983
COM(83) 616 final

Report of the Commission to the Council on the functioning of 
the arrangements relating to the import of New Zealand butter 
into the United Kingdom on special terms during the years 1973 to 1983
Contents
I. Introduction
II. Developments on the UK butter market
III. Developments in New Zealand
IV. Situation in the Community and on the world market
V. Conclusions
VI. Annexes I - XI

- 1 -
I. Introduction
1. According to Protocol No 18 of the 1972 Treaty of Accession (Annex i), the 
United Kingdom was authorised, as a transitional arrangement, to import 
from New Zealand certain quantities of butter and cheese on special terms, 
during the period 1973 to 1977·
The annual quantities were fixed as follows:
Butter Cheese
(m. tons) (m. tons)
1973 165-811 68.580
1974 158.902 60.960
1975 151.994 45.720
1976 145-085 30.480
1977 138.176 15.240
These quantities could only be imported at a price fixed by the Council, 
the observance of which had to be guaranteed by New Zealand at the CIF 
stage.
In addition, a special reduced levy was applied on these imports. This levy 
had to be set at such a level as to allow the effective marketing of the 
products without prejudicing the marketing of Community butter and cheese. 
After 31 December 1977 the exceptional arrangements for the import of 
cheese were no longer retained.
2. In accordance with Article 5 of the Protocol, the Council reviewed in 1975 
the situation as regards butter on the basis of a communication prepared by 
the Commission (Doc. R/2099/75 - AGRI 566 - RELEX 52 of 8.8.1975»
Doc. COM (75) 437 final).
This communication, which was prepared in response to the "Dublin 
Declaration" of the heads of government on 10 March 1975 (see Annex II), 
described the dairy situation on the world market, in the Community and in 
New Zealand, gave an outlook on possible future developments and also 
contained recommendations for the operation of a particular import regime
for New Zealand butter after 1977·

-  2 -
The main recommendations were :
- that the following quantities should be fixed for the three year period 
1 9 7 8-8 0:
1978 :  129*000 tonnes
1979 :  121.000
1980 : 113.000
- that the CIF price level should be fixed taking due account of the 
objectives set out in the Dublin Declaration;
- that the Commission should strive towards even closer cooperation with 
New Zealand in order to achieve an orderly functioning of the world 
market for dairy products.
3· On 29 June 1976, the Council adopted Regulation (EEC) No 1655/76, extending 
the transitional arrangements for the import of New Zealand butter into the 
United Kingdom (OJ No L 185 of 9.7.1976, p. 1) (see Annex III) on the basis 
of a Commission proposal which took account of the Council's review in 1975«
The operative annual import quantities were fixed at :  1978 - 125.000 tonnes
1979 - 120.000
1980 -  115.000
Furthermore, it was decided that should the butter imported under this 
regulation have exceeded 25 % of total UK consumption, the excess would 
have to be sold under conditions to be determined for uses other than 
direct consumption, (in fact, this provision was never applied).
At the Council meeting of 21/22 June 1976, it was decided not to adopt 
Article 9 of the Commission's proposal which provided that "the Council, on 
the basis of a report submitted by the Commission before 31 December 1978, 
shall determine, in accordance with the same procedures as that mentioned 
in Article 5(2) of Protocol 18, appropriate measures as regards imports of 
butter from New Zealand after 1980." It was felt that even though the time 
scale provided for imports was limited to three years Article 5(2) of 
Protocol 18 would allow the Council to make arrangements for the years 
after 1980.

- 3 -
4· On 6 August 1979» the Commission submitted a further report to the Council, 
concerning the situation in the dairy sector in the Community, on the world 
market and in New Zealand, in relation to the import into the United 
Kingdom of butter from New Zealand (Doc. 8832/79 of 10 September 1979, 
AGRIORG 396, COM (79) 444 final).
In that report, the following recommendations were given :
- New Zealand should be asked to voluntarily reduce their import allowances 
for 1979 and 1980, in view of the surplus situation on the Community 
butter market;
- the New Zealand take-home price should be raised to a level which would 
bring it more into line with the Community intervention price;
- consideration should be given to future import arrangements for New 
Zealand butter on a more lasting basis but on a declining scale;
- there should be a more regular pattern for debonding of New Zealand 
butter;
- for pratical and administrative reasons, the CIE price should be deleted.
5. On 4 July 1980, the Commission submitted two proposals to the Council 
(Doc. 8476/80 of 9 July 1980 (COM (800) 190 final) :
- One for amending Regulation (EEC) No 1655/76 in order to replace the 
existing system based on a CIE price and variable special levies, by a 
system with a levy which would remain unchanged throughout 1980; the 
entitlement for 1980 should, by way of a gentleman's agreement with the 
New Zealand authorities, be reduced by 20.000 tonnes, and as compensation 
for the loss of income because of this reduction a further reduction in 
the levy was proposed;
- another determining the quantities and the rules for imports of New 
Zealand butter commencing 1981.
The following annual quantities were proposed :  1981 - 97-500 tonnes
1982  -  9 5 -0 0 0  
1983 - 92.500
1984 and later years - 90.000 "
Imports to be allowed into the whole of the Community.
A special fixed levy should be determined at 69,51 ECU per 100 kg.

- 4 -
Concensus on these proposals was difficult to achieve, given that there was 
strong opposition to allowing New Zealand butter free access to all Member 
States, as well as the indefinite extension of the import arrangements.
6. After prolonged discussions, the Council adopted Regulation (EEC) No 858/81 
(OJ No L 90 of 4.4.1981, p. 18) (see Annex IV).
Until the end of March 1981, the Council prolonged the application of 
Regulation (EEC) No 1655/76 several times, in order to allow New Zealand to 
continue its imports of butter into the United Kingdom during the first 
months of 1981.
The total quantity to be imported in 1981 was fixed at 94*000 tonnes and 
for 1982 at 92.000 tonnes and imports were again limited to the United 
Kingdom only.
The special import levy was fixed at 77,52 ECU/100 kg, corresponding to 
25 % of the Community intervention price level. From this levy, the butter 
subsidy was deducted at the moment of import.
This regulation also provided that for the year 1983, the Council should, 
before 1 October 1982, determine the quantity to be imported, on the basis 
of a Commission proposal.
7· On the basis of a Commission proposal providing for an annual allowance for 
1983 of 89-000 tonnes and a levy of 84,30 ECU/lOO kg, the Council, after 
lengthy discussions, decided on 15 March 1983, by Regulation (EEC)
No 642/83 (OJ No L 76 of 22.3*1983» p- l), the total quantity to be 
imported during the year 1983 at 87.000 tonnes. Until then New Zealand had 
been allowed to continue imports of butter into the UK, on the basis of a 
monthly quantity of 7-250 tonnes fixed by the Council.
8. On 21 December 1982, the Council had fixed a new special levy of 
84,36 ECU/lOO kg (Regulation (EEC) No 3499/82 of 21 December 1982), 
applicable from 28 December 1982. This levy was based on 25 % of the new 
intervention price applicable, less an amount to compensate New Zealand for 
the loss of export revenue arising from the reduction of the annual import 
allowance from the proposed 89-000 tonnes to 87-000 tonnes.

- 5 -
The special levy was again adjusted, at the start of the 1933/84 campaign 
to take account of the increase of the Community intervention price level 
and now stands at 86,35 ECU/lOO kg, applicable from 23 May 1983.
9· Article 2(4) of Regulation (EEC) No 858/81 of the Council provides further 
that before 1 August 1983 the Council shall, on the basis of a report and 
a proposal from the Commission, review the functioning of these 
arrangements with a view to a decision on arrangements for the import of 
New Zealand butter after 1 January 1984".
10. The following table sets out annual import allowances fixed by the Council 
from 1973 to 1983, together with the actual imports during that same 
period.
Reduction
Quota Imported Quota Imports
(tonnes) (tonnes) (tonnes) (tonnes
1973 165.811 131.957
1974 158.902 131.805 6.909 152
1975 151-994 123.460 6.908 - 8.345
1976 145-085 122.626 6.909 834
1977 138.176 116.973 6.909 - 5.653
1978 125.000 122.003 13-176 + 5.030
1979 120.000 115-789 5-000 - 6.214
1980 95-000 100.495 * 25-000 - 15.294
1981 94.000 101.912 * 1.000 + 1.417
1982 92.000 87.847 2.000 - 14.065
1983 87-000 (87-000) 5.000 847
* Under investigation
(-) In the early years the import allowance was not fully utilised partly 
due to a shortage of supply and partly because New Zealand wanted to 
maintain traditional outlets other than the United Kingdom.
II· Developments on the United Kingdom butter market (see Annex V)
1. Deliveries of milk to dairies in the UK for the year 1983 are estimated to 
be of the order of 16.860 million tonnes. Compared with 1973 with 
13*705 million tonnes, deliveries increased by 23 % or about 3 % on average 
per year. However, during the last two years, the increase in production 
and deliveries is stronger (1983 compared to 1982 :  + 4 ,3 %, and 1982 
compared to 1981 :  + 5 ,7 %·

-  6 -
2. As a consequence, butter production has increased from 97.000 tonnes in 
1973 to an estimated 249*500 tonnes in 1 9 8 3 , or 157 $ over ten years. Also 
during the last two years, butter production in the UK is increasing 
faster :  in 1983 :  1 5 ,0 $ more than in 1982;
in 1982 :  25,8 $ more than in 1981.
3· After an increase during the years 1973, 1974 and 1975, butter consumption 
in the UK has continuously dropped. Total disappearance of butter went up 
in 1975 to a maximum of 486.000 tonnes and is estimated to be down to 
295*000 tonnes in 1983, or a reduction over eight years of almost 40$, or 
an average per year of 9%·  However over the year 1983 the decline in 
consumption seems to have slowed down to about 3%·
As production and consumption totals are nearing each other, the UK market 
might during the year 1984 reach a self-sufficiency rate for butter of over 
90$.
4· The main reason why stocks in the UK have not increased dramatically in the 
past years because of imports of butter, is that the UK has become an 
important exporting country for butter, mainly to other Member States.
(See Annex VI.)
5* In addition, total imports of butter into the UK have dropped substantially 
since 1975, when they reached 484*223 tonnes, to 172.068 tonnes in 1982 
(- 64$).
Within this framework, imports from other Member countries increased from 
almost 183*000 tonnes in 1973 to 360.000 tonnes in 1975 (+ 97$) but have 
decreased since then to 84*000 tonnes in 1982 (- 77$ or an annual average 
reduction of about 11$).
6. Imports from Hew Zealand showed some fluctuations (up in 1973, 1978 and 
1981 and down during the other years).
During the period 1973-1982, the reduction of imports from New Zealand has 
been about 33$ (from almost 152.000 to 87*800 tonnes), whereas the imports 
from other Member countries over the same period has been reduced by about 
55$ (from 183*000 tonnes in 1973 to 84*000 tonnes in 1982).

- 7 -
7· The main reason for the decrease of consumption in the UK is the 
development of the price level for butter.
In January 1973» the first-hand selling price for home produced salted 
butter was L367,50/long ton for bulk packaging, corresponding to 
L 361,70/metric tonne. At the beginning of June 1983, the price ex-store 
for home produced butter in bulk packaging was I ,  2.100-2.150/metric tonne 
(butter subsidy not included).
Whereas in 1973, retail prices for table margarine were roughly at the same 
price level as butter, in 1983 the price relation margarine-butter 
(including subsidy) is about 1 :  2,2.
Figures available show that in the UK the market share of margarine for 
household use, out of the total yellow fats market, increased from 42,9 in- 
January 1978 to 60$ in July 1983, whereas the market share of butter during 
the same period dropped from 57,1$ to 36,2$.
8. The price for New Zealand butter on the UK market ha3 always been somewhat 
below the level of home produced butter. Since the first hand list 
prices do not include the amount of discount which is common practice on 
the UK butter market the best comparison of price levels is the price 
relationship for butter packets at the retail stage, where New Zealand 
butter appears in the mid-range of prices between certain brands of butter 
from Member States and blended butter on the one hand and English butter on 
the other. New Zealand has succeeded during the last three years in selling 
more than the quantities actually imported in a given year such that the 
end year stocks were lower than the opening stocks.
Debonded End Year Closing Stocks (tonnes)
1979 67-524
1 9 8 0 60.945
1981
1 9 8 244.608
36.832

-  8 -
III. Developments in New Zealand
1. Since 1972/1973 milk production in New Zealand has been relatively stable 
ranging from 5,881 million tonnes in 1972/73 to 6,655 million tonnes in 
1982/83 notwithstanding the fact that there have been considerable 
fluctuations from one year to another during this period. These 
fluctuations are notably due to changes in climatic conditions. However, 
in recent years, there is a definite trend towards increased output and 
production in the 1982/83 season is the highest recorded over this entire 
period. Milk production for the 1983/84 season is projected to rise to 
6,800 million tonnes. The average annual milk production for the period 
1972/73 to 1982/83 is 6,211 million tonnes which represents an increase of 
5,6$ (330.000 t) on the 1972/73 production level. However, this increase 
of 330.000 tonnes over 10 years represents only 17$ of the increase in 
Community production in one year alone; in 1982 Community output increased 
by 1,898 mio tonnes over 1981. Cow numbers in New Zealand dropped from 
2,19 million head in 1972/73 to 2,09 million head in 1982/83·
2. The pattern of production of dairy products in New Zealand can be
summarised as follows: (tonnes)
First Year
(l) (2) 1978/79 1979/80 1980/81 1981/82(7) 1982/83(7) Average
Butter (3) 259-287 262.656 256.948 241.790 247.000 253-484
Cheese 90.310 105-727 84-342 110-912 114-000 101.058
Wholemilk
Powder ( 4) 69-995 76.504 96.754 114-520 114-000 94-355
Skimmilk
Powder (5) 196.803 192.590 205-959 216.959 176.000 197-662
Casein and
Caseinates 63-326 66.162 59-590 46.964 65.OOO 60.208
Other (6) 23-115 23-474 20.330 21.227 20.050 21.639
Notes: (l) Years end May
(2) Excludes whey powder
(3) Includes AMF (butteroil) expressed in terms of butter equivalent
(4) Includes infant food
(5) Includes buttermilk powder
(6) Lactose, condensed and evaported milk and frozen cream
(7) Estimate
Source: N.Z. Dairy Board

- 9 -
Butter production averaged 214.800 tonnes over the last ten years. In 
1982/83 it totalled 235.000 tonnes.
Cheese production, which has been decreasing until 1978/1979, has risen to 
114-000 tonnes with the main production increase occuring in 1981/82 
(+ 68/0·
Production of whole milk powder, which had been small prior to 1974, has 
increased continuously to 114-000 tonnes for 1982/83* The production of 
skimmed milk powder (s.m.p.) is fluctuating strongly and shows a large 
reduction in 1982/83 while the production of casein, which had been in 
decline over the last two seasons is estimated to have increased by 38$ in 
1982/83 to 65-000 tonnes.
3· New Zealand's internal consumption of liquid milk and cream showed an
upward trend until 1975/76 when it reached a peak of 557-000 tonnes. Since 
then there has been a steady decrease to 489-000 tonnes in 1982.
Consumption of butter is estimated to have been 41.000 tonnes in 1982/83 
and the same figure is projected for 1983/84- This represents an average 
annual reduction of 1,8$ from the 1972/73 level of 50.000 tonnes.
Consumption of cheese on the other hand, which had been rising in recent 
years, now appears to have levelled off at 27.000 tonnes. Likewise 
consumption of S.M.P. appears to be stagnant. All the indications 
therefore are that the only outlet for the vast majority of New Zealand’s 
production of dairy products still lies in the development and continuation 
of export outlets.
4· New Zealand's exports of butter in 1981/82 totalled 166.406 tonnes of which 
56,2$ went to the United Kingdom compared to 149*794 in 1972/73 of which 
83$ went to the United Kingdom.

-  10 -
The table below gives a breakdown of the volume and proportion of New 
Zealand's butter exports (in tonnes) going to various markets in the five 
year period 1977/82.
Average Percent
Destination 1977/78 1978/79 1979/80 1980/81 1981/82 1977/82 of Average
Britain 130.072 125.149 120.713 88.884 93*530 111.670 68,7
USSR - 12.900 34-404 34-318 51.850 26.694 16,4
Other 20.955 27.993 22.773 28.073 21.026 24-164 14,9
Total 151.027 166.042 177.890 151.275 166.406 162.528 100
Note: Years ended June
Source: N.Z. Department of Statistics
New Zealand's exports to the USSR have continued to rise in recent 
years and are likely to account for at least 37,8$ of total butter 
exports in 1982/83· In so far as New Zealand's butter exports are 
concerned it should be noted that the US/New Zealand agreement 
whereby New Zealand purchased 100.000 tonnes of US butter for 
conversion into butteroil in the Autumn of 1981 enabled them to 
increase their production of home produced butter and consequently 
their exports to the USSR.
These exports may also have been improved in recent years due to the 
Community voluntary withdrawal from that market. However, with the 
USSR rapidly heading towards self-sufficiency in butter (expected in 
1985) this market will possibly cease to be available as a major 
outlet for butter. This will have an important impact on New 
Zealand's possibilities for exporting butter. While no figures are 
yet available, it is likely that New Zealand exported about 70.000 to
80.000 tonnes of butter to the USSR in the calendar year 1982.
Exports of butteroil (AMP/Ghee) showed strong variations over the 
past years with a tendency to increase in recent years. However in 
1981/82 there was a substantial drop in exports of home produced 
butteroil. This reduction may be explained by the fact that the
100.000 tonnes of butter bought from the USA had to be transformed

-  11  -
into butteroil which was sold to old and new clients on the world 
market. The quantity of butteroil involved was about 78.000 tonnes 
which has been sold during the calendar years 1981, 1982 and the 
beginning of 1983«
Hew Zealand's exports of whole milk powder for the calendar year 1982 
reached 116.796 tonnes, which is an increase over 1981 of 59$. A 
substantial quantity went to the USSR, and exports to Venezuela also 
increased considerably.
For the other products, particularly cheese and casein, exports show 
considerable variations over the years such that a clear trend cannot 
be detected. This can also be said for the exports of skimmed milk 
powder.
It should be noted that, while the USSR was an important new outlet 
for New Zealand dairy products, it cannot be considered as a stable 
market outlet for the future.
5· Annex VIII shows the development of New Zealand's export earnings 
from dairy products over the period 1972-1983· Generally speaking, 
New Zealand has succeeded in diversifying part of its exports of 
butter from the UK to other destinations. It can be seen that 
New Zealand's dependence on the UK market has declined from 46,1$ of 
export earnings to 22,5$ over the entire period.
Annexes IX and X give details of New Zealand's balance of trade with 
the Community over the last ten years as well as the level of EEC 
investment in New Zealand.
New Zealand's trading pattern over the past three decades has altered 
markedly. By way of illustration, the UK took 66 percent of all 
New Zealand's exports in 1950, but only 13 percent for the year ended 
June 1981. Several new patterns of trade have emerged. The first is 
the growth of exports to Japan, Australia and the US with the result 
that these three markets and the UK each take approximately 
13 percent of New Zealand's total exports.

-  12  -
The second change has been the rapid growth in the last ten years of 
a number of new markets, including the USSR, China, Iran, South East 
Asia and the Pacific.
Direction of New Zealand Trade, 1966/81 (percent)
Trade with 1966 1970 1972 1975 1978 1979 1980 1981
EEC 5343403028272419
of which 
UK 4133302018161412
USA 1315131314151415
Canada 34322222
Australia 1214151717171616
Japan 79101313141314
Other 1215192526253134
This change in their trading pattern has occurred because of a 
variety of circumstances, the most important of which have been the 
agricultural production and trading policies of major trading 
partners, Britain’s entry into the EEC and the impact of higher oil 
prices on New Zealand's terms of trade. This has prompted a major 
industrial development and restructuring designed to make the 
New Zealand economy more responsive to the changed situation they now 
find themselves and permit them to make better use of available 
resources, provide employment and increase the competitiveness of 
manufacturing industries, which in future will have to contribute an 
increasing share of New Zealand's national wealth.
Agriculture, nonetheless, remains central to the New Zealand 
economy. Three products, meat (beef and sheepmeat - 24,5 percent), 
wool (14 percent) and dairy products (21,3 percent) account for 
approximately 60 percent of their total export receipts (1981/82 June 
year figures).

- 13 -
IV· Situation in the Community and on the world market
1· Milk deliveries in the Community (excluding Greece) have increased 
from 79,7 million tonnes in 1973 to 99,3 million tonnes in 1982 which 
is an increase of 24,5$ (or about 2,7$ per annum on average).
However for the ten Member States, milk deliveries in 1982 increased 
by 3,5$ on 1981.
The pattern of production of the main dairy products in the Community 
(l) can be summarised as follows:
000 t
19781979198019811982average
Butter and butteroil 1.9241-9611.9461.9062.070 1.961
Cheese 3-3063-4363.5733.7113-820 3-568
Whole milk powder 545601747800680 675
Skimmed milk powder 2.1642.0852.0812.0412.180 2.110
These figures compared with the comparable statistics for the New 
Zealand outputs (p. 8) indicate the relative significance of the 
absolute output and the trends in production of the two parties.
Total average New Zealand output of butter and butteroil, for 
example, represents 13$ of Community output.
The latest indications for the first seven months of 1983 are that 
milk deliveries have risen by 5$ while butter production has risen by 
15,5$ with S.M.P. up by 16,5$ on the same period last year. It is 
expected that the rate of increase in milk deliveries will slow down 
in the last five months of 1983 to between 1,1 and 2,4$ and milk 
deliveries for the whole year 1983 are expected to be 3,5-4$ higher 
than in 1982. The latest estimates for butter and S.M.P. production 
in the year 1983 are that butter production will be 2.315*000 tonnes 
and S.M.P. production will be 2.530.000 tonnes i.e. an increase of 
10,7$ for butter and 13,7$ for S.M.P.
A considerable part of the butter and S.M.P. production is going into 
intervention and intervention stocks as at 29 September 1983 reached 
for butter 614*485 tonnes (public) and 247*455 (private) and for 
S.M.P. 1.044.092 tonnes.
(l) EEC 10.

- 14 -
The previous highest total level for intervention stocks of butter 
was 600.212 tonnes which was reached on 13 September 1979· 
Intervention stocks of S.M.P. reached an all time high level of 
1.390.945 tonnes on 5 September 1976.
Production of cheese has continuously increased as a result of 
increased demand both inside and outside the Community. However the 
increase is now slowing down to a small percentage.
Production of Whole Milk Powder has dropped since a peak production 
was reached in 1981 as this product is mainly produced for export and 
exports showed a substantial reduction since then. In so far as 
condensed milk production is concerned there has been a reduction 
this year, again due to a decline in exports.
The overall consumption of milk and dairy products in the Community 
had been showing a slight increase until recent years but is now 
showing signs of weakening.
Butter consumption in the Community decreased by 3,4$ from 1973 to 
1982 or from 1,66 to 1,604 million tonnes. The level of consumption 
in 1983 is estimated to be approximately 1,57 million tonnes (- 2,1$ 
on 1982 including special sales at reduced prices).
2. The current situation on the international market for dairy products 
is characterised by a strong reduction in demand for most dairy 
products while at the same time supplies are increasing.
Sales possibilities to the Eastern block countries are declining due 
to increased production in these countries. In addition, the present 
economic recession throughout the world has further aggravated the 
situation as many countries are unable to meet foreign debts and 
consequently buy less dairy products. The general fall in demand for 
oil has had a significant negative effect on market outlets in oil 
producing countries.

- 15 -
On the supply side, apart from the Community, increased milk 
production notably in the United States and other exporting countries 
has resulted in increased competition on the world market.
Annex XI gives details of world trade in dairy products for the 
period 1977-1982 and it can be seen that for most products (with the 
exception of cheese and condensed milk) the Community's share of 
world trade has dropped from the peak levels reached in 1979/80.
The following table gives provisional figures for Community exports 
of the main dairy products for the first six months of 1983. (tonnes)
1983 1982 $ Changi
Condensed Milk 280.558 301.849 7$
S.M.P. (commercial) 83-572 97-114 - 13$
W.M.P.183.844 215-544 - 14,7$
Butter 107.880 137-530 22$
Butteroil (commercial) 40.353 18.814 + 114$
Cheese 190.142 171.349 + 1$
(June figure for Belgium not included)
Exports of all products with the exception of cheese (where there has 
been a marginal increase) and butteroil (with a 114$ increase) have 
fallen considerably on 1982.
Despite the poor international situation other exporting countries 
have succeeded in increasing sales to declining markets largely by 
undercutting each other which has lead to a substantial reduction in 
world prices.
The outlook is bleak with no indications of any improvement in the 
short to medium term, especially because of large stocks of basic 
products in the EEC and the USA. However, there is still a large 
need in the world for dairy products and in the longer term a 
recovery is possible.

- 16 -
V. Conclusions
In recent years New Zealand has succeeded in availing of its import 
possibilities to the United Kingdom to the maximum, even if import 
statistics give a somewhat different impression.
The proportion of New Zealand's butter exports going to the United· 
Kindom market in relation to their total butter exports has fallen from 
83$ in 1972/73 to 56,2$ in 1981/82. However the United Kingdom market 
still represents 70$ of the value of total butter exports. In so far as 
New Zealand's total earnings from dairy produce are concerned the United 
Kingdom market now only accounts for 22,5$ compared to 46,1$ in 1972.
New Zealand's efforts to diversify its dairy production and exports over 
the past decade have been hampered by a lack of stable new outlets and, 
more recently, by strong competition between exporting countries on a 
shrinking world market. Nonetheless some progress has been made by New 
Zealand in this respect. However, a significant part of this 
diversification has been the increased trade in butter and whole milk 
powder to the USSR, the future prospects for which are very insecure. 
Consequently the major secure outlet for New Zealand butter is still the 
United Kingdom market.
The present situation on the world market is characterised by a strong 
imbalance between supply and demand. The Community's stock level for 
butter has reached a record high level. The United Kingdom market is 
nearing self-sufficiency for butter, however, New Zealand's exports to 
the United Kingdom in 1983 represent less than 4$ of total Community 
production.
For New Zealand as mentioned above, dairy exports represent 21.3$ of 
their total export earnings and receipts from sales of butter to the 
United Kingdom equal some one-fifth of that total.

- 17 -
It therefore clearly remains true that " ... it is false to believe that 
stopping imports would solve the milk problem in the long run and 
relieve the Community of its responsibility to restore balance." (l). It 
i3 also clear that any major and abrupt drop in the quantities to be 
exported by New Zealand to the United Kingdom would have serious 
consequences for that country's economy, which would adversely affect 
the political and economic relationship between New Zealand and the 
Community.
(l) C0M(78)43O.

A N N E X  I
l8·
TEXT 07 PROTOCOL 18 TO THE ACT OF ACCESSION 
Article 1
1. The United Kingdom ia authorised, e.e t. transitional arrangement, to 
import from New Zealand certain quantities of butter and cheese, on the 
following terme.
2. The quantities referred to in paragraph 1 shall be :
(a) in respect of butter, for the first five years :
1973 165 8ll metric tons
197^ 158 902 metric tons
1975 151 99^ metrio tons
1976 1^5 085 metric tons
1977 138 176 metric tons
(b) in respect of cheese s
1973 68 580 metric tons
197^ 60 960 metrio tons
1975 '*5 720 metrio tons
1976 30 *+80 raotric tons
1977 13 2 ‘ >0 metric tons
The Counoil, acting by a qualified majority on a proposal from the Com­
mission, may make adjustments botweon those quantities of butter and 
cheese, provided that the tonnnge expressed os milk equivalent corres­
ponding to the total quantities laid down for those two· products for 
the your in question remains unalterod.
• The quantities of butter and cheese specified in paragraph 2 shall be 
importod into the United Kingdom at a price the observance of vhich 
must bo guaranteed at the c.i.f. stage by New Zealand. That price 
shall bo fixed at a level which enables New Zealand to realize n price 
representing the average prico obtsinod by that country on the Ur.itod 
Kingdom market during 1969 1 1970, 1971 and 1972.
.  The products imported into the Unitod Kingdom in accordance with the', 
provisions of this Protocol rasy not become the subject of intm-Commu-

-  2 -
Article 219-
1. Special levies ahall bo applied to imports into the United Kingdom of 
the quantities of butter and cheese specified in Article 1. Article 
55 (1) (b) of the Act of Accession shall not bo applicable.
2, The special levies shall be fixed on tho basis of the c.i.f. price re­
ferred to in Article 1 ( 3) and of the market price of the products in 
question within tho United Kingdom, at a lovol such as to allow tho 
quantities of buttor and cheose to bo effectively marketed without pre­
judicing tho marketing of Community buttor and choose.
Article 3
The Council, acting by a qualified majority on a proposal from the Com- 
micsiou,  shall adopt the measures necessary for implementing Articles 
1 and 2.
Article h
Tho Community shall continuo its efforts to promote tho conclusion of 
an international agreement on milk products so that, as soon as possi­
ble, conditions on tho world markot may be improved.
Article 5
1. Tho Council shall, during 1975* review the situation as rognrds buttor 
in the light of proveiling oonditions and of supply and domand dovolop- 
montc ii. the major producing and consuming countries of the world, par­
ticularly in tho Community and in Now Zealand. During that review, among 
the considerations to be taken into account shall be tho following 1
(a) progross towards an effective world agreement on milk products, to 
which the Community and othor important producing and consuming coun­
tries v/ould be parties;
(b) tho oxtent of Now Zealand's progress towards diversification of its 
oconoray and oxports, it being understood that the Community will strive
to pursuo a commercial policy which does not run counter to this progress.

- 3 -J 2 0.
2. Appropriate measure· to ensure the maintenance after 31 Docember 1977 
of exceptional arrangements in respect of imports of butter from Now 
Zoaland, includiwr*  dotails of such arrangements, shall bo deter­
mined by the Council, acting unanimously on a proposal from the Com­
mission, in the light of that review.
3· After 31 December 1977, the exceptional arrangements laid down for im­
ports of cheose may no longer be retained.

M N iN t: A  IjL- 1 - 2 1.
TEXT OF THE STATEMENT ON N.Z. PAIBY IMPOSTS ISSUED TOLLOVI nG THE 
EUROPEAN COUN C 7X-KEETTNQ T fi.  DTT^LTf? 1Q MARCH 197"
The Heads of Government, meeting in Council at Dublin the 10th of March, 
underline the importance which they attach to Protocol 18 of tho Act of 
Accoesion, na regards the relations of the Community with New Zealand, 
n traditional supplier of dairy products to a substantial part > * "  tho 
enlargod Community.
Thoy invite tho Commission to prosent a report in order to prepare the 
raviow provided for in Article 5 of tho Protocol and to submit as soon 
ne practicable a proposal for tho maintenance after 31st December 1977 
of special import arrnngemonts as roforred to in that article. Thoy 
obsorvodthat tho institutions of the Community have alrondy carried out 
cortnin price adjustments in the framework of tho Protocol. In the same 
spirit, the Community, which remains attachod to a fair implementation 
of the Protocol is ready to ruviow periodically and as nocessary to 
adjust tho prices having regard te the supply and domnnd developments 
in tho major producing and consuming countries of tho world, and also 
to tho lovel and ovolution of prices in the Community » including inter­
vention prices - and in Now Zoaland, taking rooroovor iuto account cost 
developments in Now Zoalr.nd and trends in freight charges.
As regards tho annual quantities to bo established by the Community ins­
titutions in tho framework of the special arrangoments aftor 1 9 7 7»  those 
should not deprive New Zealand of outlets which aro osscntial for it. 
Thus for tho period up to 1980, these nnnunl quantities depending upon 
futuro market dovolopraonta,  could remain close to effectivo deliveries 
under Protocol 18 in 197^ and the quantities currently onvieaged by 
Now Zealand Ibr 1975.
They noto that Protocol 10 provides that the exceptional arrangements 
for tho import of cheeso cannot bo mnintninod aftor 31st Docombor 1977» 
and that this situation and the problems which may ariso from it will 
bo givon duo nttontion with appropriate urgonoy, taking into account 
also the oonsidorations in the following paragraph.
<

The Heads of Government note, moreover, that New Zorland and tho Commu­
nity togothef provide the major part oY wo:Id exports of dairy products. 
They, thorefore, express the wish that, in the same spirit with which 
the Community approaches the application of Protocol 18, an evor closer 
co-operation be developed betv/een the institutions of tho Community 
and the Now Zealand authorities with the objective of promoting in their 
mutual interost am orderly operation of world markets. Sucha co-opora- 
tion, apart from its intrinsic value, should provide a basis from vhich 
to achieve, in a wider framework, the conclusion of an effective world 
agreement such as is envisaged in Protocol 18.

23.
A N N E X  III
I
(Acts whose publication is obligatory)
COUNCIL REGULATION (EEC) No 1655/76 
of 29 June 1 9 7 6
extending the transitional arrangements for the import of New Zealand butter
into the United Kingdom
Till·: COUNCIL OF THF. EUROPEAN 
COMMUNITIES,
Having regard to the A ct of Accession ('), and in parti­
cular Article 5  (2 ) of Protocol 1 8 , hereinafter called 
'the Protocol’ ,
Having regard to the proposal from the Commission,
Whereas the said Protocol provides, as a  transitional 
arrangement, that the United Kingdom is  authorized 
to import certain quantities of New Zealand butter on 
special terms from 1973 until 1977; whereas, under 
Article 5  (2 ) of the Protocol, appropriate measures to  
ensure the maintenance after 3 1  December 1977 of 
the exceptional arrangements in respect of imports of 
butter from New Zealand, including the details of 
such arrangements, shall be determined in the light of 
the review  specified in paragraph 1  of the abovemen- 
tioned Article ;
Whereas the European Council, at its meeting in  
Dublin on 1 0  M arch 1975, has already fixed a  certain 
framework for the said measures ;  whereas it w as indi­
cated that, depending upon future market develop­
ments, the annual quantities to be established under 
the special arrangements for the period from I  
January 1978 to  3 1  December 1980, could remain 
ilosc to the quantities delivered in 1974 under the 
Protocol and the quantities envisaged for 1975 by 
New Zealand in M arch 1975; whereas these quanti­
ties amounted to 1 17 350 metric tons and 125 000 
metric tons ;
Whereas in order to ensure balanced market supplies 
of butter intended for direct consumption in the 
United Kingdom, it is necessary to determine a  
percentage to be observed for New Zealand butter;  
whereas a  percentage of 25 % corresponds to the
( ' )  OJ No L 73, 27. 3 .  1972, p .  5 .average recorded in the preceding years ;  whereas 
appropriate measures must b e taken to  ensure that 
quantities in  excess of this percentage can be used fo r 
purposes other than direct consumption ;
Whereas the criteria envisaged by the European 
Council in Dublin for fixing the cif price, which New 
Zealand must guarantee to observe, do not cover only 
the production costs in  New Zealand and the trans­
port costs beween New Zealand and the United 
Kingdom but also take into account supply and 
demand developments in the major producing and 
consuming countries of the world a s w ell a s the lev el 
and evolution of prices in the Community, including 
intervention prices ;
Whereas the special levies applicable to imports of 
butter from New Zealand into the United Kingdom 
shall be fixed at a  level ensuring that the quantities 
imported can be sold without disturbing the market 
in butter of Community origin ;
Whereas use may be made as far as necessary of the 
other procedure governing these arrangements until 
3 1  December 1977, which is  laid down in  Council 
Regulation (EEC) No 226/73 o f 3 1  January 1973 
laying down general rules for imports of New Zealand 
butter and cheese into the United Kingdom (J ) , as last 
amended by Regulation (EEC) No 3067/75 (J) ,
HAS ADOPTED THIS REGULATION :
Article 1
I. The United Kingdom is  authorized, a s a  transi­
tional arrangement, to import from  New Zealand 
certain quantities of butter on the following terms.
( > ) OJ No L 27, I .  2 .  1 9 7 . 3 ,  p .  1 7 .
( > )  OJ No L 307, 27. I I .  1975, p .  4 .

2 . The quantities referred to in paragraph 1  shah 
be :
— 1978: 125 000 metru tons,
— 1979: 120 000 metric tons,
— 1980: 1  1 5  000 metric tons. .
3 . Without prejudice to the detailed rules deter­
mined by the Council, acting unanimously on a  pro­
posal from the Commission, the butter imported into 
the United Kingdom in accordance with the provi­
sions of this Regulation may not become the subject 
of intrk-Community trade or of re-exportation to third 
countries.
Article 2
1 . The quantities of butter specified in Article 1  (2 ) 
shall be imported into the United Kingdom at a  price 
the observance of which must be guaranteed at the cif 
stage by New Zealand. That price shall be fixed by 
the Council, acting by a  qualified majority, on a pro­
posal from the Commission.
On the basis of a  periodical review , the price referred 
to in paragraph 1  shall be adjusted as necessary having 
regard to the supply and demand developments in the 
major producing and consuming countries of the 
world and also to the level and evolution of prices in 
the Community — including intervention prices — 
and in  New Zealand, taking into account, moreover, 
cost developments in New Zealand and trends in  
freight charges.
Article J
1 . A special levy shall be applied on importation of 
the quantities of butter specified in Article 1  (2 ).
2 . The special levy shall be determined on the basis 
of the difference between the cif price referred to in 
Article 2  (1 ), plus the ta w rl costs between the cif stage 
and the stage of initial sale, and the market price of 
New Zealand butter in the United Kingdom.
3 . The special levy shall, so as to ensure that the 
annual quantities specified in Article I  (2 ) are effec­
tively marketed, be fixed at a  level permitting the sale 
of butter at a  consistent rate without disrupting the 
market in Community butter.
4 . The special levy charged shall be that ruling on 
the day of importation in the United Kingdom.
Article 4
Only butter which has been proved to be of New 
Zealand origin and for which the price referred to inArticle 2  (1 ) has been observed, may benefit from the 
special terms set out in Article 1 .
Article i
1 . It may be decided that the quantities of butler 
imported under this Regulation, which exceed 25 % 
of the total quantity of butter sold for direct consump­
tion in the United Kingdom during the preceding 
year, must be sold under conditions to be determined, 
for uses other than direct consumption.
2 . Without prejudice to Articles 2  (1 ) and 3  (3 ), the 
terms referred to in paragraph I  may provide for a  
differentiation of the special levy according to how 
the butter is  used, whether for direct consumption or 
for other uses.
3. In order to guarantee that this butter is  used for 
purposes other than direct consumption, provision 
may be made, on import, for this butter to meet 
special conditions to be defined.
Article 6
The United Kingdom shall communicate a ll inform» 
lion necessary for the application of this Regulation to  
the Commission, which shall inform the other 
Member States thereof.
Article 7
The Commission shall submit to the Council bclorc 
1 5  M ay each year and for the first time before 1 5  M ay 
1979 a report on the manner in which the provisions 
of this Regulation have been applied during the 
preceding year.
Article 8
Detailed rules for the application of this Regulation, 
and in particular the amount of the special lev y  a s  
w ell as the conditions mentioned in Article 5  (1 ), shall 
be adopted in  accordance with the procedure laid 
down in  Article 30 of Regulation (EEC) No 804/68
Article 9
This Regulation shall enter into force on the third day 
following its publication in  the Official Journal oj  
the European Cdiumnniliei.  ,
It shall apply from I  January 1978.

25.
This Regulation shall be binding in its entirety and directly applicable in all Member 
States.
/
Done at Luxembourg, 29 June 1976.
For the Council  
The President  
G . THORN

A N N E X  IV26
relating m c h -COUNCIL REGULATION (EEC ) No 858/8 1 
of 1  April 1 9 8 1
..iport of New Zealand butter into the United Kingdom on  
special terms.
THE COUNCIL OPTHE EU RO PEA N  '
C O M M U N IT IE S, · '/ '■ '
Having regard to the 1972 Act of Accession, and in 
particular Article 5  (2 ) of Protocol 1 8  annexed to that 
A ct,of Community origin intended (or the same purposes, 
provision should be made that the New Zealand 
butter in question may be used only for direct 
consumption,
Whereas Protocol 1 8  and subsequently Council Regu­
lation (EEC) No 1655/76 of 29 June 1976 concerning 
the transitional arrangements for the import of New 
Zealand butter into the United Kingdom ('), as last 
amended by Regulation (EEC) No 482/81 ('), have 
authorized the United Kingdom to import certain 
quantities of New Zealand butter on special terms 
until 31  March 1981;
Whereas in order to contribute, in accordance with 
the common interest to the harmonious development 
of world trade, arrangements should be made to 
permit New Zealand to continue to export butter to 
the United Kingdom on special terms;
Whereas the new arrangements must include 
measures to prevent the balance of the United 
Kingdom butter market from being disturbed;  
whereas, therefore, the quantities of New Zealand 
butter imported under these arrangements must be 
fixed on a  degressive scale ;
J
Whereas a  special levy, which w ill normally remain 
unchanged, is  the most appropriate method of 
protecting Community butter from the disadvantages 
resulting from the frequent fluctuations of its level 
and of enabling New Zealand to plan on a  reasonable 
basis its exports to the United Kingdom in line w ith 
market developments ;
Whereas the level of the special levy must take into 
account the aid granted in the United Kingdom to 
Community butter under Regulation (EEC) No 
1 269/79 (J ) , a s last amended by Regulation (EEC) No 
854/81 ( » ) , which affects the selling prices of this 
butter in that Member State ;
Whereas in order to prevent New Zealand butter qual­
ifying for this special levy from being used for indus­
trial purposes at a  lower price level than that of butterH A S  ADOPTED TH IS REGULATION:
Article I
Tne United Kingdom shall be authorized to import 
certain quantities of butter from New Zealand under 
the terms of this Regulation.
Article 2
1 . These arrangements shall apply during the 
period 1  April iy8l to 3 1  December 1983.
The quantities which may be imported under these 
special arrangements shall be :
— for the period 
70 250 tonnes;April to  3 1  December 1 9 8 1  
for the calendar year 1982: 92 000 tonnes.
(') Oj No L  185. 9. 7. 1 976, p. I.
(') oj No l  52. 27. 2. 1981. p. 2.
(’)  OJ No t  161, 29. 6 . 1979, p. 8 .
(') See page 1 4  of th is O fficial Journal.2 . The Council, acting on a  proposal from the 
Commission, shall determine before 1  October 1982 
the quantity which the United Kingdom w ill be autho­
rized to import during the calendar year 1983 in  view  
in particular of the development of (he situation on 
the Community butter market and the development 
of the world butter market.
3 . The quantities specified in paragraph I  m ay, in  
accordance with the procedure provided for in  para­
graph 2 , be temporarily reduced in order to  prevent 
serious disturbances on the United Kingdom butter 
market, in  particular should there be a  substantial and 
unexpected drop in  the direct consumption of butter.
f  ·
4 . Before 1  August 1983 the Council shall, on the
basis of a  report and a  proposal from the Commission, 
review  the functioning of these arrangements w ith a  
view  to a  decision on arrangements for the import o f 
New Zealand butter after I  Jinuary 1984. '

27.
Article 3
1 . The special levy applicable to New Zealand 
butter imported under this Regulation shall be 77-52  
ECU per 1 00 kilograms, less an amount equal to the 
amount o( subsidy referred to in Article 2  (2 ) of Regu­
lation (EEC) No 1269/79.
2 . However, the rate of the special levy may be 
adjusted by the Council, acting by a  qualified majority 
on a  proposal from.the Commission, whenever other 
Communiry measures alter to  any substantial degree 
the conditions under which butter is marketed in the 
United Kingdom.
Article 4
Entry under'the special import arrangements shall be 
conditional upon the presentation of a  certificate 
showing that the butter concerned :
— is of New Zealand origin,
— is  a t least six weeks old,
— has a  fat content by weight of at least 80 % but 
less than 82 %, and
— has been manufactured directly from milk or milk 
cream.
i >
. Article 5
The butter imported into the United Kingdom in  
accordance w ith the provisions of this Regulation may 
not become the subject of intra-Communiry trade or 
of re-exportation to third countries.
Article 6
Imports of New Zealand butter shall be subject to the 
provisions adopted under Regulation (EEC) No 
974/71 ( > ) , a s last amended by Regulation (EEC) No 
lOll/SOf1 ) , w ith regard to the fluctuations of the 
currencies of certain Member States.
Article 7
The United Kingdom shall take the measures neces­
sary to  ensure that New Zealand butter, importedunder this Regulation, is not used for processing but 
only for direct consumption within the meaning of 
Article 1  (a ) of Regulation (EEC) No 1269/79 on the 
territory of the United Kingdom and to require 
payment of sr. amount equal to the aid granted under 
Regulation (EEC) No 1269/79 in the event of unauth­
orized use. Æ
The amounts thus collected shall be considered as a  
levy within the meaning of the first indent of Article 
2  (a ) of Council Decision 70/243/ECSC, EEC , 
Euratom of 2 1  April 1970 on the replacement of finan­
cial contributions from Member States by the Commu­
nities’  own resources (’) .
Article 8
The United Kingdom shall communicate all informa­
tion necessary for the application of this Regulation to  
the Commission, which shall inform the other 
Member State? thereof.
Article 9
Detailed rules for the application of this Regulation 
shall be adopted in accordance with the procedure 
provided for in Article 30 of Regulation (EEC ) No 
804/68 (’), as last amended by the 1979 A ct ol Acces­
sion. They shall provide in particular for control 
measures to ensure observance of the qualities speci­
fied in Article 2 ,
Article 10
This Regulation shall enter into force on the day of its 
publication in the Official Journal of the European 
Communities.
It shall apply from 6  April 1981, excepting Article 1  
and Article 2  (1 ) which shall apply from I  April 1981.
Regulation (EEC) No 1655/76 together with a ll Regu­
lations based on that Regulation shall be repealed 
from 6  April 1981.
This Regulation shall be binding in its entirety and directly applicable in a ll Member 
States.
Done at Brussels, I  April 1981.
1  For the Council
The President  
G .B RA K S
C ) OJ N o L  1 0 6 . 1 2 . 5 , 1 9 7 1 , p . I. 
(') O J N o L  1 0 8 , 2 6 . 4 . 1 9 8 0 , p . 3.( » )  OJ N o L  9 4 , 2 8 . 4 . 1 9 7 0 . p . 1 9 . 
(·) O J N o L  1 4 8 , 2 8 . 6 . 1 9 6 8 , p . 1 3 .

Annex V
Development of butter Production, consumption and trade in the United Kingdom
_________________________________________________________________________________________ <1000 tonnes)
1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982
:  Milk Production 13.997 14.241 13.836 13.815 14.302 15.098 15.831 15.827 15.416 15.761 16.653
:  Milk Deliveries 13.445 13.705 13.311 13.329 13.838 14.598 15.317 15.322 15.182 15.289 16 162
:  Deliveries as % 
:  of production 96 96,2 96,2 96,8 96,8 96,7 96,8 96,8 98,5 97,0 97,0
:  Butter product. 96 97 54 48 90 134 162 161 168 172,3 216,8
:  Total import 
:  of which 
:  - EEC
:  - New Zealand358
147
118318
186
132454,32
322,03
131,81484,22
359,90
123,46393,80
271,10
122,63300,82
183,85
116,97288,26
166,17
122,00235,08
119,29
115,79195,01
94,51
100,50208,33
106,42
101,91172,07
84,01
87,85
:  Total exports 4 16 2,52 2,99 15,61 11,91 54,73 58,10 78,17 70,98 57,71
:  Consumption:
:  Household/
:  Catering
:  Other manufac.390 409
24445
18462
24441
18410
18396
18389
18315
18319
30305
:  Total disappear- 
:  ance 390 433 463 486 459 428 414 407 333 349 305

Annex VI
UnitedKingdom Exports of Butter (tonnes)
:  Country :  1974 :  1975 :  1976 :  1977 :  1978 :  1979 :  1980 :  1981*  ·  •  ·
:  1982 :
:  FRANCE :  2 :  18 :  391 :  631 :  12040 :  2889 :  1998 :  1372 :  4489
:  BELG.-LUXBG. :  21 :  62 :  9263 :  2319 :  12382 :  13766 :  18295 :  9431 :  13520 :
:  NETHERLANDS :  134 :  536 :  2908 :  5311 :  20685 :  28606 :  50129 :  48191 :  32428 :
:  GERMANY :  354 :  384 :  274 :  172 :  2419 :  1527 :  926 :  266 :  137 :
:  ITALY :  1 : :  0 :  6 :  23 :  699 :  0 :  2 :  5
:  IRELAND :  98 :  87 :  1131 :  1330 :  871 :  1186 :  2408 :  4009 :  852 :
:  DENMARK :  2 : :  0 :  1 :  0 :  18 s  2 :  189 :  0 :
:  GREECE :  0 : :  0 :  2 :  0 :  0 :  0 :  0 :  2 :
:  TOTAL EC :  612 :  1087 :  13968 :  9769 :  48420 :  48690 :  73757 :  63419 :  51433 :
:  OTHER :  1911 :  1899 :  1700 :  2143 :  6311 :  9410 :  4414 :  7556 :  6275 :
:  TOTAL :  2523 :  2986 :  15668 :  11912 :  54731 :  58100 :  78171 :  70975 :  57708 :

Annex VIZ
United Kingdom Importa of Butter
(1000 Tonnes)
:  Country :  1974 1975 1976 1977 1978 1979 1980 1981 1982
:  Germany :  46,955 63,258 43,323 27,439 13,586 9,086 11,164 9,041 5,959 :
:  France :  32,335 38,313 19,984 13,648 5,857 1,649 1,347 1,295 983 :
:  Netherlands :  101,932 11,909 85,055 53,225 37,735 24,916 11,916 21,788 10,647 :
:  Belg./Lux. :  10,212 10,135 3,558 901 1,189 224 302 371,651 :
:  Ireland 36,248 53,324 47,958 29,275 48,301 39,958 30,028 31,029 27,480 :
:  Denmark :  94,351 82,963 71,204 59,358 59,497 43,456 39,757 43,227 37,294 :
:  total BC :  322,033 359,902 271,100 183,845 166,165 119,289 94,514 106,416 84,014 :
:  New Zealand :  131,805 123,460 122,626 116,973 122,003 115,789 100,495 101,912 87,847 :
:  Others 486 86 76 2 96- 1 2 207 :
:  TOTAL :  454,324 484,223 393,802 300,820 288,264 235,078 195,010 208,330 172,068 :

A N N E X  V ili31
New Zealand's Overseas Exchange Earning from 
Dairy Products (N.Z. fi million)
Total U.K. U.i,  as a ^ of total
x972 334 154 46 ,1
1973 297 137 46,1
!974- 322 97 31,2
1975 —  —  ---
19
76 511 174 3 4 ,0
3-977 565 186 32,9
1978 628 233 37,1
3-979 633 197 31,1
1980  1 .0 2 2  289 2 8 ,3
1981 1.316 385 29 ,3
1982 -  1.455 327 22,5

A N N E X  IX
NEW ZEALAND'S OVERSEAS EXCHANGE 
TRANSACTIONS WITH THE EUROPEAN COMMUNITY 
(NINE) (DLRS NZ MILLION)
Year Balance _ .  ...j. _ T .  c Invisible(Ending Exports Imports of .  ,
30 June) Trade Receipts
1973 732,1 496,9+235,2
1974 612,9 667 -54,6
1975 532,9 832,7-229,8
1976 797,8 926,7-128,9
1977 1.068,3 867,5+200,8
1978 1.074,9. 827,2+247,8
1979 1.220,9 867,5+353,4
1980 1.400,7 1.051,1+349,6
1981 1.490,5 1.052 +438,5
1982 (X) 1.580,4 1.160,8+419,6
1982 (X) Figure includes GreeceInvisible Invisible Current/AC 
Payments Balance Balance
169,8 270,5 - 100,7 +134 ,5
212 ,0 281,0 - 69 ,0 -123 ,6
223 ,5 349,7 - 126 ,2 -3 56 ,0
238 ,9 448,3 - 209 ,4 -338 ,3
244 ,5 539,2 - 294 ,7 -93 ,9
285 ,5 651,5 - 366 ,0 -118 ,2
308 ,2 736 ,0 - 427 ,8 -74 ,4
399 ,7 875,5 - 475,8 -126 ,2
506 ,7 934 ,5 - 427 ,8 +10 ,7
535 ,8 1 069 ,9 - 534 ,1 -114 ,6
The balance on invisible transactions is consistently in the European Community's favour and 
in most years is more than sufficient to offset a trade balance favourable to New Zealand.

33.
A N N E X  X
INVEST  M" ENT
DIRECT OVERSEAS PRIVATE INVESTMENT 
IN NEW ZEALAND BY COUNTRY OF ORIGIN 
(NOT INCLUDING OVERSEAS BORROWING BY,  
NEW ZEALAND FIRMS)
Year
(Ending 31 March)United KingdomOther
European Community 
(Dlrs NZ Million)
1972/73 3 8 r  3 3,0
1973/74 61,9 3,5
1974/75 54,7 0,7
1975/76 29,2 6,7
1976/77 100,6 4,5
1977/78 97,8 -
1978/79 302,4 2
1979/80 136,1 10,7
1980/81 84 9,2
NB: There will be activities of European subsidiaries of
U.S. companies which are not shown up by these statistics.

ANNEX XI
--------  (1)In
ternational trade in dairy products (1,000 t)
EEC = EEC (10)
EEC intra-trade not included
1977 1978 1979 1980 1981 1982
,  (1)(3)Butter + buttercn l
- World total 615 590 809 961 936 780
- EEC 268 274 496 593 491 400
- Others 347 316 313 368 445 380
- EEC share 43,6% 46,4% 61,3% 61,7% 52,5% 51,3%
,  .  (1)(2)Skimmed milk powder
- World total 913 904 1 .045 975 909 844
- EEC 420 418 634 578 501 352
- Others 493 486 411 397 408 492
- EEC share 46,0% 46,2% 60,7% 59,3% 55,1% 41,7%
(3)Cheese
- World total 590 589 638 711 761 799
- EEC 208 214 255 307 360 380
- Others 382 375 383 404 401 419
- EEC share 35,3% 36,3% 40,0% 43,2% 47,3% 47,6%
(2)Whole mi Ik powder
- World total 513 491 586 714 708 685
- EEC 324 331 381 524 537 458
- Others 189 160 205 190 171 227
- EEC share 63,2% 67,4% 65,0% 73,4% 75,8% 66,9%
Condensed milk^
- World total 644 653 682 813 812 808
- EEC 497 485 476 561 582 601
- Others 147 168 206 252 230 207
- EEC share 77,2% 74,3% 69,8% 69,0% 71,7% 74,4%
(1) Food-aid included
(2) Basis GATT statistics, as at September 1983
(3) Basis FAO statistics, as at August 1983