It is a set price to the government at the port, and the board determines what the packer is to get from it.
Britain places cheese next to wheat in her preference list. She could not offer as much for butter as our farmers can get in their own market. We therefore decided not to press for an agreement on butter, but to enter into an agreement on cheese. This does not mean that Britain will not take any butter, but if she does it will require to be marketed in the
ordinary way, and any influence the government can bring to bear on the marketing will be brought to bear if advisable.
Last year we had an agreement to deliver 78-2 million pounds of cheese at a price which nets us 14 cents a pound at Montreal. We delivered 90 million pounds and received for it 12-6 million dollars. This year we have agreed to deliver 112 million pounds at 14-4 cents at Montreal. This will net us at Montreal 16-1 million dollars. If we can deliver more, Britain will take it. There is no limitation, either in our discussions or in the agreement, on the total amount, but she wanted us to commit ourselves to a minimum amount in order that she might be able to deal with her rations.
In addition to cheese there is an arrangement under which we may deliver condensed milk to the value of at least $3,750,000 or to the amount of 1,000,000 cases. If one totals these figures it will be found that if we deliver only the minimum amounts of food products the contracts call for, we will sell $93,691,000 worth of food products other than wheat and fish. If we include the fish and not the wheat, our export of food products to Britain this year will amount to $105,741,000. This will be the largest return from these products since the latter part of the last war.
Here I Should like to place on Hansard the record for the last seven years, including the record under this agreement on the minimum amounts, in order to indicate what that means to the food producers of the Dominion of Canada:
Subtopic: CONTINUATION OF DEBATE ON ADDRESS IN REPLY