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.
For cheese of the varieties Emmenthal, Gruyère and Sbrinz, except in slices, and for processed cheese, a reduction to 5 per cent ad valorem may be granted if the dutiable value is at least 650 /re (86.7 cents) per kg. for hard cheese and 775 /re (103-3 cents) for processed cheese.
Butter imports are subject to licensing, but no duties are levied. COM.AG/W/29/Add.l Page 10
Inports of milk and canned milk products are also subject to licensing.
Skimmed milk powder for feeding purposes is not subject to duty, but an import levy is charged at a rate to bring the price of imported skimmed milk powder c.i.f., Danish port plus import levy up to 170 pre/kg. (22.7 cents). The import levy must not, however, be less than 20 ^re/kg. (2.7 cents).
Duty at the rate of 20 per cent is levied on other kinds of milk and cream, canned, condensed or sweetened. COM.AGA/29/Add.l Page 11
C. Consuopticn and internal prices
G.I. Statistical data en consumption
Table 11
Consumption of Dairy Products, 1965-1967
1 1965 j 1966 1967
Whole milk, total ('000 tons) j 641.8 i643.7 655.7 Whole milk, per capita (kg.) : 134.9 1134.4 135.6 Skimmed milk, butter milk ('000 tons) 151.2 !156.3 Butter, total ('000 tons) 47.8 1 47.3 48.0 Butter, per capita (kg.) 10.1 9.8 9.8 Cheese, total ('000 tons) 44.2 ! 45.5 46.9 i 3 ! Cheese, per capita (kg.) 9.3' 9.8 9.6 ' Milk powder (industrial consumption) ('000 tons) 2.8 ! 2.9 3.1 2 Skimmed milk powder for feeding ('000 tons ) 20.0 24-0 27.0
Including producers' own consumption of liquid milk. 2
Estimate.
C.2. Trends in consumption and estimates for 1970
Table 12
Trends in Consumption of Dairy Products, 1956-1966 ('000 tons)
1956 1957 1958 1959 I960 1961'1962Il963i1964 1965 1966 i Consumption of milk for 560 628 648 629 1635 ' 627 production of liquid , 583 629 603 613 634 milk, cream and icecream i Butter 39.7 44.9 60.8 49.9 49.6 48.8 48.6;43.5 49.8 47.8 47.0 1 Cheese 30.0 31.8 33.8 35.6 40.5 39.4'40.9;41.5 43.4 44.2 46.9;
'Excluding producers' own consumption. COM.AG/W/29/Add.l Page 12
Comments re Tables 11 and 12:
The consumption of liquid milk: has been fairly stable in recent years; in the somewhat longer run it will probably decline due to changes in consumer preferences which are now for more specialized products (notably junket and yoghourt).
Butter shows a downward trend due to the falling consumption of fats.
The consumption of cheese has shown a marked increase in recent years; while it seems to have become stabilized, a continued increase cannot be ruled out. Incidentally, the level of consumption is relatively high compared with that of other countries, due probably to the large variety offered.
Estimates for 1970
•000 tons kg./per capita
Whole milk 673 132 Butter 48.6 9.5 Cheese 49.0 9.6
Skimmed milk powder for feeding 33.0 ••
C.3- Retail and wholesale prices
Retail prices of ' dairy products are given in Table 13. A comparison of wholesale and retail prices of butter and cheese is made in Table 14.. Table 13
Retail Prices of Dairy Products. 1965-1968 (Average for the whole country)
Jan. Jan. Jan. Feb. Unit Mar. Apr. May June July Aug. Sep. Oct. Nov Dec. „ Jan.? 1965 1966 1967 1967 1967 1967 1967 1967 1967 1967 1967 1967 1967 1967 1963
Butter, lurbrand, cents/kg. 139 147 154 153 153 154 153 154 163 163 163 163 163 163 163 salted
Cheese, | 45 per cent, oents/kg. 108 115 125 125 "12 5 126 128 127 130 130 130 130 130 130 130 Danbo
Whole milk cents/litre 14 15 16 16 16 16 16 16 17 17 17 17 17 17 17 l Tem n per cent value added tax included in price index as from 1 July 1967. 2 In order not to conceal seasonal variations, prices for the period November 1967-January 1968 have been converted to the ante-devaluation US:'' rate of exchange.
TO s CD • ^5- S GOM.AG/V/29/Add.l Page 14
Table 14
Retail and Wholesale Prices of Butter and Cheese. 1965-1967 ($/kg.)
• Butter Cheese
Home market price, Retail Cheese quotation, Retail . 2 . 2 ex dairy ex dairy"^ price price January 1965 1.23 1.39 0.54 1.08 April 1965 1.23 1.39 0.55 1.09 July 1965 1.23 1.39 0.55 1.10 October 1965 1.30 1.17 0.56 1.11
January 1966 1.30 1.47 0.57 1.15 April 1966 1.36 1.47 0.59 1.15 July 1966 1.36 1.53 0.56 1.17 October 1966 1.36 1.54 0.56 1.18
January 1967 1.36 1.54 0.56 1.25 April 1967 1.36 1.54 O.56 1.26 July 1967 1.45 I.63 0.55 1.30 October 1967 1-45 I.63 0.56 1.30 1. - _, 'See Table 7.
^ee also Table 13.
Weekly quotation of the Dairy Industry's Cheese Export Board for semi-hard cheese containing 45 per cent of fat in dry matter. Figures relate to quotations for the first week of each quarter.
It should be noted that the home market price for butter approved by the Monopolies Control Board is equivalent, in practice, to the wholesale price« COM.AG/W/29/Add.l Page 15
Data on wholesale prices of milk are not available. However, the producer prices given in Table 8 reflect also the price fluctuations at the wholesale level and may, with addition of up to 2 $re (0.3 cents) for quality, a few $re for special hygienic requirements to be met by liquid milk, and a freight charge of approximately 2.5 /re (0.4 cents) be taken to represent wholesale prices of milk supplied to major towns. The quotations concerned are given in Table 15.
Table 15
Quotations of the Federation of Danish Dairy Associations ""for Whole Milk (Fat Content 3.65 Per Cent). Based on the Settlement Price for Butter. 1966 (cents/kg.)
January February March April May June 6.45 6.^5 6.38 6.29 6.09 6.09
July August September October November December 6.01 5.95 6.14 6.33 6.49 6.51
The prices, except those of milk (cf. Table 15), are not subject to any great seasonal variations. Prices of butter are stabilized by the Home Market Scheme and the British quota. Prices of cheese are stabilized by the EEC's fixed threshold prices.
Data on retail prices of skimmed milk powder are not available. Pursuant to the provision of legislation governing imports of grain - see B.IL above - prices of skimmed milk cannot, however, fall below the fixed import price of DKr 1.70 (22.7 cents) per kg. In early April 1968, the retail price of skimmed milk powder for feeding was DKr 1.85 (24*6 cents) per kg.
C.4. Factors which condition the evolution of internal consumption
C.5. Policies and measures affecting consumption
Consumer subsidies are not granted.' The Dairy Industry's Home Market Board is running a comprehensive publicity and advertising campaign to promote domestic sales of dairy products. In 1965 the expenditure per capita on sales promotion was &0.21 or considerably more than in most other countries.
Of this amount, one third was expended on advertising in cinemas, daily newspapers, etc., and two thirds on direct sales promotion (local dairy weeks, etc.). In addition, a number of welfare sohemes are operated (e.g. milk to expectant mothers), but their impact on total consumption is limited. COM.AG/W/29/Add.l Page 16
D• International trade and prices
D.l. Statist]cal data on imports and exports
(a) Imports
Table_l6
Imports of Cheese, by Country of Origin. 1964-1966
1964 1965 1966
tons •fr'000 tons &>'000 tons $'000 !
Norway 50 47.3 53 53.9 61 57.5 i France 58 93.4 438 205.2 113 145.9! Netherlands 9 7.5 10 7 = 7 10 Italy 38 62.3 46 81.9 53 97.0 ; Switzerland 146 177.2 161 202.8 177 242.6 j United Kingdom 26 24.2 64 51.8 45 34.9 j Others 29 29.1 31 30.8 92 95.0
: Total 356 441.5 808 634.1 551 680.0 Of which, EEC countries 119 177.8 511 294-8 206 282.8 , > Table 17
Imports of Milk Powder. 1964-1967
1964 1965 i960 1967
tons $'000 tons $'000 tons I'OOO tens $'000
\31,860 6,235 8?290 1,993 12,231 2,999 11,949 2,955 < COM.AG/w/29/Add.l Page 17
Tabic 18
Imports of Milk Powder, by Country of Origin, 1964-1966
1964 1965 1966
tons £>'000 tons I'OOO tons $'000
Sweden 973 180 5 2 725 192 France 1,411 277 B elgium/Luxembur g 2 1 779 177 120 14 United Kingdom 50 10 2,743 692 6,673 1,685 Germany, F.R. 2,396 606 4,221 1,004 Canada 603 97 699 139 152 23 United States 28,352 5,632 1,537 345 80 21 Others 469 38 131 32 260 60
Total 31,860 6,235 8,290 1,993 12,231 2,999
(b) Exports
The volume of exports of principal dairy products is shown in Tables 19-22. Exports of "nearbutters" were previously incorporated in export figures for butterj now, as from January 1968, they are calculated separately. . ~
Table 19
Exports of Fresh Milk and Crean. 1965-1967
1965 1966 1967 •000 1 '000 '000 tons million tons million tons million
Germany, F.R. total 31.2 4-6 27.7 4.5
of which, foreign troops 29.4 4.9
Other countries 0.1 0.0 0.1 0.0 0.6 0.1
Total 31-3 4.6 27.8 4.5 30.0 5.0 C0M.AGAj/29/Add.l Page 18
Table 20
Exports of Butter, 1965-1967
1965 1966 1967
'000 '000 •000 1? tons million tons million tons million
Sweden 0.0 0.0 0.4 0.3 0.0 Czechoslovakia 1.3 1.2 0.0 0.0 France 0.4 0.6 0.5 0.4 0.1 Portugal 0.6 0.5 0.4 0.3 Switzerland 2.4 2.3 1.0 0.8 United Kingdom 101.5 99.0 101.6 99.0 97.8 96.4 Germany, F.R. 4.0 3.8 5-3 4.3 2.4 1.8 - Foreign troops in Germany, F.R. 1.3 1.3 East Germany 0.9 0.9 Kuwait 0.4 0.4 0.4 0.4 0.4 0.4 Lebanon 0.6 0.6 0.6 0.6 0.5 0.5 Other countries 3-0 3-3 1.9 2.0 1.6 1.7
Total 115.5 112,7 111.8 107.9 104.0 102.4 Of which, EEC countries - 4-7 . 4.5 6.4 5.1 2.8 2.1 EFTA countries 105.0 | 102.2 103.0 100.2 97.8 96.7 C0M.AG/V/29/Add.l Fage 19
Tablo 21
Exports of Cheoaei 1965-1967
1965 1966 1967
'000 * '000 '000 $ tons million tons million tons million
Sweden 4.6 3.2 4.6 3.4 4.7 3-4 Belgium/Luxemburg 1.1 0.8 1.1 0.9 0.9 0.7 France 2.3 1.6 1.8 1.4 1.5 1.2 Italy 3.6 3.1 3.0 2.6 2.2 2.0 Switzerland 1.4 1.0 1.1 0.8 1.1 0.8 USSR 3.0 1.7 0.0 0.0 2.0 1.1 United Kingdom 9.4 7-4 9.2 7.4 9.4 7.4 Germany, F.R. 35.9 25.2 36.3 27.1 34.9 26.8 Austria 1.0 0.9 0.9 0.8 0.8 0.7 Canada 1.8 1.6 1.7 1.6 2.1 1.9 United States 4.8' 4-7 li.l 8.8 13-1 10.1 Japan • 0.3 0.2 1.0 0.7 1.1 0.7 Australia 0.9 0.8 0.9 0.9 0.8 0.8 Other countries 4.6 3.5 4-8 3-7 4-5 3.8
Total 74.7 55.7 77.5 60.1 79.1 61.4 Of which, EEC countries 43.0 3C9 42.4 32.2 39.4 30.3 EFTA countries 16.6 12.7 15.9 12.6 16.1 12.6
Including supplies to foreign troops. COM..ÛCr/W/29/Add.l Page 20
impart from minor quantities of processed cheese supplied in 1967 in connexion with the United Nations/Food and ilgriculture Organization World Food Programme (WFP), all these exports were commercial.
Table 22
Exports of Milk and Cream. Evaporated or Canned,. 19.65.~19.62
1965 1966 1967
'000 tons $ million '000 tons $ million '000 tons $ million
Netherlands 4.2 1.3 3.9 1.2 2.1 0.6 USSR 3,0 1.7 - - - - United Kingdom I6.4 7.0 12.9 5.7 11.3 5.2 Nigeria 2.1 1.2 1.9 1.1 2.0 1.2 Venezuela 8.1 4.9 2.9 1.7 4.1 2-5 Ceylon 2.0 0.7 3.1 1.1 2.1 0,8 India 1.0 0.4 4-0 1.4 8.6 j 2.8 Kuwait 1.4 0.7 1.9 0,9 2.6 1.3 Lebanon 1.8 1.2 2.0 1.2 2.8 1.7 Malaysia (includin g 6.7 2.9 5.6 2.9 8,9 3.1 Singapore) | Saudi i^rabia 1.5 0.8 1.5 0.8 2.6 1.4 Thailand 7.7 2.5 5.7 1.9 4.5 1.9 Other countries 23.1 12.9 26.4 14o0 23.9 16.2
Total 79.0 38.2 71.8 33,9 80,5 38.7 Of which, ' EFTJL countries 16.9 7.3 13.4 1 5.9 12.0 5.5 EEC countries 6.3 2.8 4-3 1.3 2.3 0..7 COM.AG/w/29/Add.l Page 21
D.2. Levels of export prices
Export prices of the two principal export commodities, cheese and butter, are shown in Table 23.
Table 23
Export Prices of Cheese and Butter in Principal Export Markets, f.o.b. ($ per kg.)
• —•"-• , Cheese Butter
Germany, F.R.J Total United Kingdom Total
First quarter 1965 0.69 0.75 1.00 1.00 Second quarter 1965 0.71 0.73 0.95 O.95 1 Third quarter 1965 0.71 0.75 0.95 0.94 Fourth quarter I965 0.72 0.77 0.95 0.94 1 Calendar year 3.965 0.70 0.75 O.96 0.96 1 First quarter 1966 0.73 0.77 0.93 O.92 Second quarter I966 0,76 0.77 0.93 0.92 ; Third quarter 1966 0.75 0.79 0.95 0.93 Fourth quarter 1966 0.76 0.79 0.94 0,93 Calendar year 3.966 0.75 0.78 0.93 0.92 First quarter 1967 0.77 0.79 O.94 - 0.94 oecond quarter 1967 0.76 0.74 0.98 0.97 Third quarter I967 0.76 0.79 0.99 0.98 Fourth quarter 3967 0.82 0.87 0.94 0.93 Calendar year 196? 0.77 0.79 0.95 0.95 1 1 C0M.AG/w/29/Add.l Page 22
To illustrate c.i.f. prices in the principal Danish market for butter, the quotations of the London Provision Exchange for salted Danish butter are given in Table 24-.
Table 2A
Quotations of thu London Provision Exchange for Salted. .Danish Butter (ex Quay)
shillings/pence per cwt. $ per 100 kgs.
Average for 1966 364/0 100.31 January 1967 ) February 1967 ) 36A/0 100.31 March 1967 ) ipril 1967 ) May 1967 374/11 103.32 June 1967 378/8 IO4.36 July 1967 379/0 104.45 August 1967 378/7 104.33 September 1967 378/9 104.33 October 1967 -, 379/0 104.45 November 1967 378/9 • December 1967 379/0 89-53
On 18 November 1967 the rate of exchange between dollars and pounds was altered from £L= $2.8 to £1 = $2.4. For that reason quotation in dollars has not been calculated for November.
Whole milk powder accounts for the major part of milk po;/der exports. In recent years, prices have been in accordance with the minimum prices laid down in the OECD Gentlemen's Agreement concerning whole milk powder. As of 1 April 1968 the price fixed under the Agreement was $52 per 100 kgs. Exports of milk powder are not subject to seasonal variations -
Comments re the interrelationship of price formations in individual markets and quantities exported:
Danish prices of cheese are adjusted to changes in EEC levies seeing that under the EEC common organization of markets for daily products, these levies are determined by the lowest representative offer on the world market. Hence, the EEC policy on levies is a determining factor in Danish price offers in other markets.
As the United Kingdom is the principal market for Danish butter, prices in that market are a dominating factor in the determination of Danish export prices for butter. COM.AG/w/29/Add.l Page 23
D.3. export aid measuras and policies
D.4.. Bilateral agreements affecting imports or exports