N.Z.'S PROBLEM

Bay of Plenty Beacon, Volume 4, Issue 153, 10 September 1941, Page 2

N.Z.'S PROBLEM

HUGE BUTTER SURPLUS

LITTLE CHANGE OF EXPORT

Famine and pestilence face millions of people in Europe and other parts of the world as the result of the Nazi lust for world-wide domination. New Zealand, on the other hand, is faced with the gravest problems in its history bccause of the huge surpluses of food arising from the disorganisation of export markets.

Not the least of the marketing problems to be solved by the Government is the estimated surplus of between four and five thousand tons of whey butter that is expected to arise this season.

"So far no solution is in sight for this problem," said Mr J. W. McConnon, head of the dairy produce section of the Internal Marketing Division, when questioned on the subject in Christchurch. The estimated surulus, he said, Avas equivalent to about one-quarter of the Do minion's normal consumption, and there seemed to be little chance of it being exported. Lower Prices Lower prices might be suggested ns the solution, said Mr McConnon, but experience had shown that that did not Avork out in practice. Whey butter, he pointed out, had poor keeping quality once it came out of cool store, and because of that the general consumption of butter Avould fall if Avhey butte.r Avere made availAble at a cheap price to the public. That had been proved by an experience in Auckland, Avhere the department had been compelled to withdraAV second-grade butter from the market becauss of the continual complaints about its quality. There Avas another big howl, said M;r McConnon, when it Avas Avithdrawn, but, after a feAV months, it was found that the consumption of butter rose 6 per cent and the merchants emphaticallyi declared that they did not Avant to handle any more second-grade produce. "To dump the butterfat," said Mr McConnon, "'would invoke, a squeal about the pollution of streams." Asked Avhether he had any ideas '">f hoAv to OA'ercome the problem, Mr McConnon said lie had, but Ava? not prepared to reveai them for the* time being. Other departmental officials, he said, Avere working on the same problem. Increased Subsidy An increased subsidy to the' producers Avas the suggestion offered by a dairy factory manager as the way out of the difficulty. He pointed out that whey butter ay as only a by-product of cheese and represented a saving of 5.6 per cent butterfat. In view of the fact that cool storage wuuld have to be provided for the Avhey butter, he contended that the most economical Avay'oul would be to pay the producers an additional 5.6 per cent on the guaranteed price for cream for cheese production. The AAiiey could then be dumped, he said, Avhile the amount of the additional subsidy would be small in comparison Avith the subsidies paid by the Goveriiine.nt on othei produce.