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General Agreement on Tariffs and Trade

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General Agreement on Tariffs and Trade RESTRICTED GENERAL AGREEMENT ON COM.AG/w/29/Add.l 30 June 1968 TARIFFS AND TRADE Limited Distribution Agriculture Committee Originals English DENMARK INFORMATION SUPPLIED IN RESPECT OF DAIRY PRODUCTS Page A. Production: production measures and policies 2 B. Protection and support measures and policies 6 I. Internal support measures and policies 6 II. Measures at the frontier 9 C. Consumption and internal prices 11 D. International trade and prices 16 COM.AG/w/29/Add.l Page 2 A. Production; production neasures and policies A.l. Statistical data on total volume of production Table 1 Volume of Production of Principal Products, 1965-1967 ('000 tons) 1965 1966 1967 Milk, total (at farms) 5.367 5.306 5.216 Skimmed milk and butter milk 3.434 3.307 3.175 2 Butter 166.3 159.8 155.7 Whole milk powder 28.5 29.0 29.0 Skimmed milk powder 20.2 24.0 24.0 Condensed milk, and other 35.0 Cheese 114.2 125.1 123.4 Including producers' own consumption. Separate data on butter oil and butter fat not available. Table 2 Average Yield of ililk per Unit of Production. 1963/6A-1965/66 (kg. per cow) 1963/64 1964/65 1965/66 3,614 3,756 3,822 COM.AG/w/29/Add.l Page 3 Table 3 Volume of Cheese Production, Breakdown by Varieties ('000 tons) . ! , 1965 1966 1967 Blue veined 10.5 10.8 10.1 Camembert, brie 1.8 2.0 2.2 Emmenthaler 2.6 2.7 2.3 Samsoe 13.0 13.8 12.5 Maribo 7.8 7.5 6.7 Fynbo 2.6 2.4 2.7 Danbo 28.4 30.9 30.0 Tybo/Elbo/Molbo 7.8 8.2 7.5 Havarti 28.1 28.5 27.8 Esrom 3.6 4.2 4.7 Cheddar 1.5 3.5 Other varieties 6.5 14.2 13.7 Total 114.2 125.1 123.4 Table 4 Volume of Milk Weighed-in for Canning. 1965-1967 ('000 tons) 1965 j 1966 1967 522 537 625 COM.AG/w/29/Add.l Page 4 A.2. Trends in production and estimates for 1970 Table 5 Trends in Production. 1956-1966 ('000 tons) 1 1956 S 1957 1958 1959 I960 1961 1962 1963 1964 1965 1966 Milk 5,068 5,344- 5,147 5,426 5,399 5,224 5,355 5,086 5,233 5,367 5,306 Butter 165.2 174.6 158.9 168.0 166.7 171.3 166.8 149.3 155.7 166.3 159.8 Cheese 84.3 97.9 107.6 115.1 113.4 122.1 114.0 121.0 124.1 114.2 125.1 Estimate for 1970 ('000 tons) — Milk 5,300 Butter 161 Cheobe 120 Milk weighed-in for canning 725 , , . i Milk production has been declining by 1-2 per cent annually during the last few years. The main reason for the decline is that the prices obtained for butter exports have for several years been insufficient to ensure the renunerability of milk production. The prospects for exports of cheese and processed milk are unfavourable. These "factor's are likely to make the decline in Danish milk production accelerate in the coming years unless an improvement on international markets is brought about. COM.AG/w/29/Add.l Page 5 A.3. Statistical data on carry-over stocks and stockpiles Table 6 " Butter Stocks (seasonal) 0000"tons) 1966 1967 1 January 5.3 2.0 1 July 6.6 7.3 Other data on stocks not available. A.4.. Factors which affect production The major part of the production is exported and seeing that domestic consumption of dairy products as a whole is fairly stable, see C below, conditions in the export markets are the dominant factor. With regard to the prospects for exports, reference is made to the above estimate for 1970. On the supply side, essential changes due to technological progress or improvement of productivity are not very likely. It should be noted, however, that comprehensive structural rationalization of the dairy indus­ try is taking place. A.5. Policies and measures of governments or other bodies likely to influence production, other than those listed under B COM.AG/w/29/Add.l Page 6 E. Protection and support measures and •policies B.I. Internal support measures and nclicios B.I.I. Inventory of the instruments of support B.I.2. Levels of guaranteed prices or support prices B.I.3. Amount of producer subsidies In pursuance of Act No. 256 of 9 June 1967, the Minister for Agriculture is authorized to pay out of Treasury funds a subsidy to agriculture of DKr 250 million annually distributed on the basis of milk production. The subsidy is disbursed weekly to dairies through the Federation of Danish Dairy Associations on the basis of reports from individual dairies on the quantity of wholemilk and its fat content received directly from individual producers. The subsidy is passed on to the milk producers on the basis of the fat content of the delivered milk. In pursuance of the above-mentioned Act No. 256 of 9 June 1967, an amount of DKr 150 million will be transferred from the Ministry of Finance to the General Purposes Fund in the fiscal year 1968/69. The Fund is used for measures to promote the marketing of all Danish agricultural products. In the fiscal year 1968/69 an additional sun of DKr 50 million may be disbursed on the basis of the milk -production or transferred to the General Purposes Fund. Guaranteed prices to producer are not paid. The price which the producer obtains for milk depends on the selling price. Seeing that the major part of the milk production is exported, the r.:ilk price obtained by the farmer is nainly determined by the export prices of principal products. A Home Market Scheme for Dairy Products was established in 1961 on the basis of voluntary agreement among Danish dairies. The underlying arrangements have been notified to the register of prices maintained by the monopoly control authorities, and price maintenance intended under this Scheme is controlled in pursuance of Danish legislation on monopoly control. The central element in the determination of prices under the Scheme is a fixed price ex dairy for butter sold to the domestic market. The prices which as mentioned have to be approved by the Monopolies Control Board are shown in Table 7. COH.AG/W/29/Add.l Page 7 Table 7 Hone Market Prices for Butter, 1965-1967 —————— • DKr/kg. $Ag. ' 3 September 1965-28 April 1966 9.00 1.30 29 April 1966-29 June 1967 9.4.0 1.36 29 June 1967-17 November 1967 10.00 1.-45 18 November 1967 10.00 1.33 On 18 November 1967, the rate of exchange between Danish kroner and US1"' was changed from 6.907 to 7.50. B.I.4.. Average returns to producers Average returns to producers, ex farm, are shown in Table 8. Table S Selling Prices of laik. ex Farm. 196A-19661 (3.65 per cent content of fat) (cents/kg.) 1964 6.07 1965 6.01 1966 6.24. Including additional' payments paid under the voluntary Home Market Scheme. To the prices given in Table 8 should be added the support to milk production under the aforementioned Act of 9 June 1967. COM.AG/W/29/Add.l Page 8 Table 9 Support to Milk Production. 1965-1968 (cents) Per unit cf Per kg. railk fat weighed-in 2 Jul. 1965 - 2 Sep. 1965 0.1 0.0 3 Sep. 1965 - 3 Mar. 1966 0.2 0.0 4. Mar. 1966 - H Apr. 1966 0.1 0.0 15 Apr. 1966 - 28 Jul. 1966 - - 29 Jul. 1966 - 25 Aug. 1966 0.1 0.0 26 Aug. 1966 - 29 Sep. 1966 0.2 0.0 30 Sep. 1966 - 29 Dec. 1966 C3 0.0 30 Dec. 1966 - 2 Mar. 1967 0.1 0.0 3 Mar. 1967 - 9 Mar. 1967 0.1 0.0 10 Mar. 1967 - 29 Jun. 1967 - - 30 Jun. 1967 - 27 Jul. 1967 0.0 0.3 28 Jul. 1967 - 24. Aug. 1967 0.1 0.3 25 Aug. 1967 - 28 Sop. 1967 0.2 0.3 29 Sep. 1967 - 28 Dec. 1967 0.3 0.3 29 Dec. 1967 - 21 Mar. 1968 0.1 0.3 22 Mar. 1968 - 27 Apr. 1968 0.0 0.3 COM.AG/W/29/Add.l Page 9 Table 10 Selling Prices oi' Lneese and Casein, ex Dairy. 1965-1967 (cents per kg.) 2 ( 1965 1966 1967 Moulded cheese 94 97 98 Emmenthaler, 45 per cent 84 80 83 Others, 4-5 per cent or more 58 60 57 4.0 per cent 53 55 53 30 per cent 44 47 45 20 per cent 41 44 42 10 per cent or less 40 42 42 Cheese, total 60 62 59 Casein 14 14 22 eluding home market levy. Calculated on the basis of time-weighted average rate of exchange: #1 = DKr 6.975. B.I.5. Method of determining returns for producers, etc. The chief elements of returns to producers will be seen from Table 8; see also Table ^. Additional payments received under the Home Market Scheme are included in the producer prices given in Table 8. Additional payments per calculated kg. of butter in milk weighed-in have not been calculated for the calendar years covered by Table 8. B.II. Measures at the frontier Cheese imports have been liberalized; the general rate of duty is 10 per cant ad valorem.
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