BUTTER NEGOTIATIONS

Dominion, Volume 11, Issue 23, 22 October 1917, Page 5

BUTTER NEGOTIATIONS

NO FINALITY YET

THE DEPUTATION IN ENGLAND

Tiie news cabled on Saturday from London that certain people in England claimed to represent ti\o National Dairy Association ot Now Zealand was probably a surprise to tho people who have been in charge of tho negotiations hero. Eor some weeks now the Prime Minister has been acting as intermediary between tho dew Zealand butter-producers and the I'ood Controller in Britain in the matter of tho purchase of tho New Zealand output in the present summer by tho British authorities. He states that he has 110 knowledge of tho interview by these other parties-in IBnglitnd with Lord Rhondda other than that conveyed by the cabled news. It is more than likely tnat tho people who approached Lord Rhondda are the persons and firms who ordinarily distribute New Zealand butter in London, and who therefore are in. touch with the merchant exporters in this country. The first price offered by tho Imperial Government for New Zealand butter was 1555. per cwt., but this price tne producers hero rejected as being too low. It is understood that the negotiations have not been broken off, that the Imperial Government is prepared to pay a littlo more, and that the producers are inclined to accept tho amended otter. Ihe second offer of the Imperial Government is about 1575. per cwt. The deputation which went to Rhondda in England asked for very much more than this. They asked ior a price on a parity with that paid lor Irish butter, tho'n quoted at 22ie. per cwt. Irish butter is replacing Danish butter on the English market in these days when there is no Danish, and the pa.it preference is for New Zealand butter. But with Irish at 221s per cwt, the price of New Zealand butter f.o.b. would bo about Mils, per cwt., or Is. ild. per pound. Without interference by tho Government this would mean a retail price of from Iβ. lid. to "a per pound in New Zealand. The chief concern of the New Zealand producers, however, is not the price they are to receive. They are anxious nrst ot all that they shall have some sort of an assurance that the Imperial Government will afford them facilities for the rtippent of their, butter to England and they can be sure ot this only i the output is purchased by the lood Controller. Their concern on this count is the more serious because Air. -jHa&ey has stated his opinion that there mil bTa shortage of shipping after December next.