EXPLANATORY STATEMENT
STATUTORY RULES 1987 NO. 42
Issued by the Authority of the Minister for Primary Industry
DAIRY PRODUCE REGULATIONS (AMENDMENT)
The Dairy Produce Regulations prescribe conditions for the export of controlled dairy produce. One of the conditions is that licensees only export controlled dairy produce in accordance with the International Dairy Arrangement. This requirement reflects the fact that Australia has entered into certain treaty obligations under the General Agreement on Tariffs and Trade (GATT) International Dairy Arrangement (IDA) and, as a result, has undertaken to observe the conditions for the export of dairy products as specified by the IDA. The IDA includes the Protocol Regarding Certain Milk Powders, the Protocol Regarding Milk Fat and the Protocol Regarding Certain Cheeses, which provide, inter alia, for minimum export prices for certain dairy products to be observed at the free on board level, ie net of freight and insurance charges subsequent to boarding.
On 1 October 1986 the Committees of Protocol of the IDA regarding Certain Milk Powders and Certain Cheeses decided to establish new higher minimum prices for skimmed milk powder, whole milk powder, buttermilk powder and cheese to apply from 2 October 1986. The minimum prices applying from 2 October 1986 for the range of products covered by the IDA, along with the prices previously applying, are as follows:
Dairy Products | Price Prior to | Price Applying | |
| 2 October 1986 | from 2 October 1986 | |
| $US Per Tonne | ||
Skimmed milk powder | 600 |
| 680 |
Whole milk powder | 830 |
| 880 |
Buttermilk powder | 600 |
| 680 |
Anhydrous milk fat | 1,200 |
| 1,200 |
Butter | 1,000 |
| 1,000 |
Cheese | 1,000 |
| 1,030 |
To account for these changes the amendment to sub-regulation 4(2) redefines the IDA as that in force at noon on 2 October 1986. The opportunity has also been taken to extend the application of the requirements to observe the IDA to the Australian Dairy Corporation (ADC) when trading in its own right. This merely formalises existing practice whereby the ADC fully observes IDA conditions as to minimum pricing, when trading in its own right.