PURCHASE OF CHEESE

Dominion, Volume 10, Issue 2968, 4 January 1917, Page 8

PURCHASE OF CHEESE

IMPERIAL GOVERNMfIT WILL BUY; HERE CONFERENCE OF PRODUCERS. \ ■•■. 'A conference of New Zealand cheeso producers convened' by tho Minister of Commerce (the Hon. W. D. S. ■MacDonald) was held yesterday, to consider proposalb from tho Imperial Government for the purchase or' New Ze«- - land cheese. As the cable news lias already in- : formed us, the Imperial Government came to a decision Bomo days ago to requisition all New Zealand cheese on arrival in England, and the price was understood to be a fraction less than lOd. per. lb. Mr. Mac Donald has been in: communication with Mr. Massey on . the matter, and as a, result of Mr. ■ Maßsey , ! representations, the Imperial Government now, offer to buy New Zealand cheese in-New Zealand at a f.o.b. price. It was.this proposal tbat the conference had before it yesterday. Aα agreement was reached tentatively f on all points, but it has still to go be- /" fore flome half a dozen of the South' i Island representatives who were un- • able to reach Wellington to be present ■ at the conference yesterday. Theywill arrive this morning, and it is practically certain that the whole business , will be finally settled when tho full conference reassembles to-day. _ -^ Mr. Mac Donald was unwilling to divulge any information about the price offered or the terms of purchasd until they had been definitely accepted by i the conference. The terms of purchase also have to be ratified by the Imperial Government, and these, have been cabled,home. Replying to a question, , Mr. Mac Donald said that the offer made by the Imperial Government was ''on the lines of" the cabled news thai the English price was to be a. little less than 10d. per lb., and it was less' . than prices already rejected by factories tliis season. Previously; it has always been reckoned that the New Zealand equivalent of the English price is about Ijd. less, this being the total "cost per. pound of shipping and niai- , keting the cheese. This deduction, .. however, allows for the middleman's

i] profits, and it is possible that under the new proposals the middleman will be eliminated. Mr. Mac Donald would not say any mors than this about tho conditions of purchase; would not Jor instance; whether payment is to bo' made for cheese on shipment or at some stajjo prior to shipment. CONGESTION OF CHEESE EFFECT ON FACTORIES. The executivo of tho South. Auckland ! Dairy Association, at a meeting at Hamilton, received, a communication from tho National Dairy Association, stating that arrangements had been made for a steamer to load butter and cheese for England about the middle of January. Tho chairman, Mr. H. E. Pacey, in commenting upon Mr; Massoy's cabled assurance that cheeso would be shipped, said that at present the congestion was a very serious one, aud the disappointing featuro at present was that even the Prime Minister's message did not give any indication as to whon tho cheese would bo shipped, and the congestion relieved. On December 23j. there were in the freezing works at Auckland alone 102,113 boxes of butter and 18,796 crates of cheese. Every -week these quantities were increased enormously. A report had also been received that the Imperial . Insurance Fund had increased its war risk premium from £1 Is. per cent, to £2 2s. per cent., this being in some respects the most ominous communica- ' tion received for some time. It .was also reported that the Taranaki companies had advanced from 10d. to. Is. per lib. for milk supplied' to cheeso factories during November, wliil'e even smaller advances were being contemplated for the December supply,'unless the congestion due to inadequate shipping facilities wa-s greatly reduced in the/interval. The East Coast dairy factories were reported as having advanced 10d. for November supplies. In view of increased insurance financial difficulties due to the congestion,. the uncertainty'as to the rate 'which would be paid for cheese by the Imperial Government, and to tho increase in rate of freight, it'was decided to recommend the associated dairy companies to advance not more than Is. per lb. for butter-fat supplied during she nionth of December, such advance in respect of butter to be subject to certain premiums and reductions . as usual J It Was emphasised , by members that the prospect was a good one, and that the payments realised would likely be satisfactory, and when gales were reported from timo to time it was probable that further substantial progress payments would-be made.