Producers pay into a fund operated by the Australian Butter Stabilisation Committee, a body representing all butter producers, a levy of 1¾d. per pound on all butter produced and from this fund there is paid a bounty of 2½d. per pound on all butter exported. The scheme is voluntary.

Regulations issued under the Export Subsidies Act, 1931, provide for the payment of a subsidy at the rate of 10 per cent. of the export value in respect of various primary products exported from the Union, including butter, cheese, condensed milk, cream, milk powder and lactogen. The funds required to pay for this subsidy are obtained from a special Customs duty, or primage tax, of 5 per cent. ad valorem, imposed as from 29th October, 1931. Regulations issued under the Dairy Industry Control Act, 1930, provide for a levy of one penny per pound on butter and cheese, payable by manufacturers or importers into the Butter and Cheese Levy Funds. Out of these funds the following bounties are at present payable on exported butter and cheese:

The Dairy Produce (Price Stabilisation) Act, 1932, became law on 4th July, 1932, its provisions being in part made retrospective to 21st April. The Act established a system of export bounties on certain milk products to be paid from funds derived from levies on butter production. As from 1st August the working of the Act was modified. From that date subsidies derived from public funds began to be paid. The position in regard to different milk products may be stated as follows:

Creamery Butter.—From 1st August the Irish Free State Government guaranteed to creameries a price of 117s. f.o.r. for exported butter. This involved the payment of a substantial subsidy. Payment of the subsidy was suspended so far as exports to the United Kingdom are concerned as from 9th November.

Factory Butter.—The subsidy paid after 1st August was at the rate of 20s. per cwt. It is understood that after 8th November an adjustment was made to correspond to the increase in the duty chargeable in the United Kingdom.

Bulk Cream.—Under the Dairy Produce (Price Stabilisation) Act, a bounty was paid on bulk cream at the rate of 2d. per lb. of the butter equivalent of the cream. From 1st August a subsidy has been paid at the rate of lid. per gallon of cream with butter fat content up to 52.9 per cent. and of 1s. per gallon of cream with butter fat content of 53 per cent. or over.

Tinned Cream.—The bounty under the Dairy Produce (Price Stabilisation) Act was calculated on the same basis as in the case of bulk cream (up to 31st July). From 1st August a subsidy has been paid at the rate of:

• 1s. 6d. per case of 48 5-oz, or 6-oz. tins; and
• 2s. 6d. per case of 48 10-oz. or 12-oz. tins.

Condensed Milk and Dried Milk.—The bounty under the Dairy Produce (Price Stabilisation) Act was as in the other cases detailed above calculated on the basis of the butter fat content. A subsidy of equivalent amount is still being paid.

Under a Law of June, 1932, the State guarantees to producers of butter during the period of one year from 1st July, 1932, a fixed price of Lats. 2.50 in respect of every kilogram of 1st grade butter and Lats. 2.40 in respect of every kilogram of 2nd grade butter sold abroad. When the world market price in respect of Latvian butter exported abroad falls below the guaranteed price the difference is paid to suppliers of milk to dairies registered at the Ministry of Agriculture as producing butter. When the world market price exceeds the guaranteed price, 50 per cent. of any excess must be credited to a special fund from which, in case the prices fall again, bounties may be paid. The Ministry of Agriculture is instructed gradually to deduct from bounties due, loans in the form of seed and cattle food granted before 1st June, 1932. Payments are made in cash to suppliers who have no debts in respect of seed or cattle food. Funds for the payment of the bounty are established in the State Budget.

An act was passed in May, 1932, entitled the Dairy Farmers' Relief Act. A surcharge is levied on all edible fats consumed in the country, except raw animal, cocoa butter, milk fat, and mineral fats by enforcing the use of labels which will be obtainable on a sliding scale according to the period of the year. From the fund thus established, dairy producers are paid a subsidy to recompense them for losses sustained on exports.

A bounty of 6 zlote per 100 kilograms is understood to be paid in respect of butter exported.

The main feature of a complicated system introduced this year is a general levy of about 2 ore per kilogram imposed on all milk sold in Sweden, or used by farmers in the production of cream, butter or cheese for sale. The proceeds of the levy are used to enable those dairies which produce butter for export to pay a higher price for milk than they could afford to pay on the basis of the price now obtainable for export butter.

NOTE.—State assistance is also accorded to the dairy industries in Norway and Switzerland, but such assistance does not appear to involve the payment of a bounty on exported dairy products.