RESTRICTED
WORLD TRADE WT/L/61
22March 1995
ORGANIZATION(95-0612)
INTERNATIONAL DAIRY COUNCIL
FIRST SESSION
Note bytheChairman
1. TheInternational Dairy Council helditsfirstsession from20-21 March 1995. Ms.B.Cannon
(Ireland) waselected Chairperson oftheCouncil. Mr.M.Ito(Japan) waselected Chairperson ofthe
Committee onCertain Milk Products.
2. Alistofparticipants inthesession isattached.
3. TheCouncil adopted Rules ofProcedure forthenewInternational Dairy Agreement.
4. TheCouncil examined thesituation andoutlook intheworld market fordairy products, basing
itself onthereport oftheCommittee onCertain Milk Products, ondocumentation provided bythe
Secretariat andoninformation provided byparticipants during themeeting.
5. World production ofskimmed milkpowder declined in1994. Consumption alsodeclined,
butworld exports recovered slightly. Production ofwhole milkpowder continued toincrease globally,
andexports alsoincreased in1994. World market prices forbothskimmed milkpowder andwhole
milkpowder strengthened during thesecond halfof1994 andinearly 1995. Available supplies in
major producing countries werelimited, andtherelative weakness oftheUSdollar alsocontributed
tothissituation.
6. World butter andbutter oilproduction continued itslong-term decline. There appeared to
bealevelling offinworld consumption ofbutter in1994, aftermany years ofsteady decrease. World
exports ofbutter areestimated tohavefurther declined in1994, although there wasanunexpected
increase intrading intheclosing months of1994 andinearly 1995. World butter stocks declined
byafurther 10percentduring 1994. World market prices forbutter firmed inthelatter partof1994,
andwererelatively highduring thefirstquarter of1995. Asproduction approaches itsseasonal peaks
innorthern hemisphere countries, thesustainability ofthecurrent price levels formilkpowders and
butter beyond thecoming months might betested.
7. Production ofcheese continued toexpand globally in1994, asdidworld cheese consumption
andexports. World market prices forcheese were steady attheendof1994 andearly 1995, and
relatively high.
8. Asof4May1994, theCommittee oftheProtocol Regarding MilkFatdecided tosuspend the
minimum export prices forbutter andanhydrous milkfatforaperiod ofuptotwelve months. Intaking
thisdecision theCommittee agreed tokeepthelevel ofworld market prices under regular review,
based onanalyses bytheSecretariat. Participants agreed toprovide totheSecretariat, every twomonths,WT/L/61
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themostrecent information available tothem ontheirexport salesofbutter andanhydrous milkfat.
TheCommittee tooknoteofthedocument prepared bytheSecretariat onthebasis ofinformation
furnished byparticipants for1994 (IDA/CMP/W/2). Thisdocument willberevised toinclude new
available information.
9. TheCouncil tooknoteofcertain information submitted inreply toQuestionnaire 4,concerning
production, consumption, trade andprices forproducts notcovered bytheAnnex onCertain Milk
Products.
10. Thenextregular session oftheCouncil isscheduled for20September 1995, subject to
confirmation bytheSecretariat.WT/L/61
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Participants attheFirst Session -
International Dairy Council
Committee onCertain Milk Products
Parties
Argentina
European Communities
Hungary*
Japan
NewZealand
Norway
Romania
Sweden
Switzerland
Uruguay
Others
Australia Separate Customs Territory ofTaiwan,
Brazil Penghu, Kinmen andMatsu
Canada Latvia
Korea
Mexico
Poland
South Africa FAO
*Subject toratification