TERRIBLE MONOTONY

Bay of Plenty Beacon, Volume 11, Issue 23, 2 May 1947, Page 5

TERRIBLE MONOTONY

NORMAL DIET IN BRITAIN MR W. E. HALE’S OBSERVATIONS Speaking yesterday at the... Eastern Bay of Plenty section of the Northern Ward of N.Z. Dairy Board, Mr W. E. Hale, Chairman of the N.Z. Dairy Board, had some interesting observations to make with regard to the foodstuff position in the Old Country which he visited last year as a representative of the dairying industry of this country at the International Conference of Primary Producers in London.

“My association,” he said, “with the Government representatives on the price and contract discussions . for dairy produce with the United : Kingdom Ministry of Food was ful.ly reported to the Dominion Conference held in Wellington in 1946. We were successful during ' these : negotiations in securing an increase ■ of 24s 6d per hundredweight in the } price of butter and 13s 6d per hun- • dredweight in the price of cheese. 'These prices operate until 31st July, 1947, and are due to be reviewed in -June or July of this year. Produce For Britain We have agreed, subject to certain conditions regarding a limited . amount of produce for other markets, to supply Great Britain with • the whole of our available surplus of butter and cheese until 1950. It will be necessary to review the de- ' tailed clauses of our contract in 1948 but subject to this review the United Kingdom Government has • undertaken to accept the whole of our exportable surplus of butter and cheese until 1950. They do retain the right, however, to indicate what proportions of butter and cheese shall be shipped in any year. There is no doubt that at the pre:.sent time the United Kingdom is • desperately short of foodstuffs and our stay in London, brief as it was, was sufficiently long to convince us of terrible monotony of the I British diet at the present time. This undoubtedly combines with the difficult supply position to place Britain in a weak bargaining position on prices and we endeavoured to secure satisfactory long term conditions of supply rather than press for the maximum price that Britain could be compelled to pay in view • of. her dire need. Denmark Faces Problems In this connection I should mention that Denmark is facing considerable difficulties with very high costs both internally and for imported foodstuffs. Her producers are also handicapped by an adjustment in the exchange rate made by the Danes during the war period, in an effort to discourage agricultural production for German consumption. .‘Nevertheless, it is clear that Denmark is'taking advantage of a sellers’ market and is well out in the lead for increased prices £or dairy produce. Australia, on the other hand, is very reluctant indeed to follow this steep increase in dairy prices and was inclined to a long "term view of the market rather than capitalise the present price advantage.

Stable Market Assured

So far as butter at least is concerned, it seems to me that we have a satisfactory market until at least

1950. Consequently I have no hesitation in advising dairy farmers that the market is likely to be stable for at least the next three or four years and we should now plan for maximum production’.

Increased production and increased supply to the United Kingdom will not only secure our long term market but v/ill also serve the very important purpose of helping to meet the United Kingdom’s urgent food needs. Conditions of supply of butter are likely to be difficult for many years. British dairy farmers will be diverting approximately 90 per cent, of their total production to liquid milk for some time to come. Denmark is now approaching prewar production of butter but is not likely to exceed that figure greatly. Australia is having difficulty in reaching her pre-war export of dairy produce and it is doubtful whether conditions of supply are likely to improve for some years to come. New Zealand will remain the chief source of supply of butter to the United Kingdom market for several years. First Hand Knowledge In concluding my remarks on this visit overseas, may I say that it was a most valuable insight into conditions in the United Kingdom and into many aspects of our marketing problems. I was able to see at first hand the conditions under which • our produce is at present being marketed and to learn something of '.the problems of the importer. But-

ter boxes were undoubtedly of considerable concern and the chairman has already reported to you on the Board’s steps to safeguard the future box supply position. There is no doubt, however, that the British importers are very reluctant indeed to use rimu boxes.