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Abstract

In December, 1955, the New South Wales Government amended the Dairy Industry Act, 1915-1955, to increase the quota of margarine production in this State from 2,500 tons to 9,000 tons per annum. Following - on a large increase in the Queensland quota some years earlier, this development heightened the perennial fears of dairying industry organisations that competition from margarine would have very serious effects on the incomes of Australian dairymen. However, speaking during the second reading of the bill (November 23, 1955), the Minister for Agriculture and Food Production gave as his opinion that "whatever effect margarine has upon the dairy industry at present, the tendency in the future will be for it to diminish ... ". It is the purpose of this article to review recent developments in the butter-margarine position and to attempt to assess the effect of competition from margarine on the Australian dairying- industry.

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