DAIRYING INDUSTRY

Dominion, Volume 10, Issue 3085, 16 May 1917, Page 8

DAIRYING INDUSTRY

CONGESTION OF' STOCKS

POSITION MOST SERIOUS

The- the butter and cheeso Industry, duo to tho shortage of shipping causing congestion'in the cool stores, ivas tho subject of an interview on Saturday with Mr. H. E. Pacey, of Auckland, managing direotor of the -Now Zealand Dairy Association. With reference to the shortage of shipping 'space, ho said tho position was extraordinarily serious. At present thero was in tho province more than £750,000 worth of butter and cheoso, and there was no certainty when the arrears would be overtaken. The,accumulation of butter -was greater than that of ■cheese. The fact of the Government having purchased cheeso had caused it to bo given preference in shipping. . In reply to a question, Mr. Pacey said ho had been in communication by cablegram with Mr. Massey in regard to the.shortage of shipping, and he believed tho' Primo Minister was exerting every influence to secure some relief by sending moro ships here. In -reply td a specific inquiry, Mr. Massev said'he had_reason to expect that the accumulations would be cleared before .tbonext dairying season opened. So far,. however, said Mr. Pacey, there had .been no: indication of a relaxation of tho position, and all responsible pooplo engaged in the' industry had , j-oason for anxiety. -.. ■, "There is much f,b be said," stated Mr. Pacey, "in favour of the suggestion that tho atorago capacity of tho ports should be further increased as a' moans of meeting the crisis -which is ponding."-In reply to an inquiry, Mr. Pacey said: "There is not any present expectation of manufacturers being compelled to discontinue the making of cither butter or cheese. The position is undoubtedly grave, but I believe organisation,-and effort will avoid such an extreme measure." Mr. Pacey, in reply to a further question' regarding the outlook, said some of tho small companies were -undoubtedly embarrassed, while all wcro feeling the strain to a greater or a lesser degree. At present lie did not consider the occasion required Government aid. ' In the meantime the. question of the rato ,-to bo paid out for monthly supplies was engaging attention, and there was a disposition to pay out proi»rtionatoly_less than would Lave been considered justifiable, even during the early period of tho war. This especially, applied to butter, "Fear has been expressed," continued- Mr. Pacey, "that some of the advances .already mndo have been too high, and will involve refunds' by tho suppliers, r think, however, that the position will he mot without such recourse.. This, of course,' assumes a clearanca on the lines indicated in Mr. Massey'fl cahlogram. At present I am hopeful, 1 but anxious. In my opinion there is no probability of tho freezing, works

not being able to handle tliis .season's output of buttei and cheese,- as the end of the season is at hand. ' Tho anxiety, is for next season's output."

Questioned as to the effect on the local market of tho congestion of stocks, Mr. Pacoy said that as New Zealand prices wore many ponce per pound below the Homo values,'he considered it unlikely that local prices would be affected for the timo being.