THE CHEESE PURCHASE

Dominion, Volume 11, Issue 35, 5 November 1917, Page 8

THE CHEESE PURCHASE

A SUGGESTION. ..." , . (To tho Editor.) , • Sir,—l would like to make a few suggestions to the cheese industry and those who are negotiating a sale with the Im--perial authorities in order that the business- might t work smoothly during , the poriod of (lie war. It is now widely ■known that the Imperial authorities have fixed (ho price to.-the British public, through the usual channels, at Is. 4d. - per- ll>. for cheese from Canada, Australia, New Zealand, and the United States. , Tho retailer buys this cheese at Is. 2d. ■per lb., from the wholesaler. The wholesaler invoices the cheese on the Government forms, and receives 5 per cent.; if he sells the cheese in three- . crate lots; Where tho wholesaler is an jlmporter,, and- sells the cheese in more . than, three-erato lots, he only receives 2J per cent.instead 0f,5 per cent, and pays the Government > within seven days and' tc- ' ceives nu allowance of 35 per cent, for shrinkage.. Tho importer receives hiß proportion on a footing in proportion with his imports, which he imported in 1916. All the charges come off the retail public pric« of Is. 4d per lb., and New

Zealand fanners should get tho price, less

all tho oharges, lly suggestion is that the Imperial authorities confer with tho New Zealand Government beforo they lower the price of New Zealand cheese, and once the price is ngreed on to tho British public then full particulars of tho whole of tho charges between the cheese factory in New Zealand and tho British public should'bo-shown to tho cheese producer, and ho should get the_ differonOe. As an illustration I would like to say that assuming that tho price has been fixed at• 9Jd. per lb., and less 3J per cent, shrinkage and othor minor detail, all of which cost a little money to tho Imperial authorities, these charges in New Zealand, together with freight, insurance, war risk, landing charges, aircraft, and distribution should come off tho price of Is. -td. per lb.- All these charges are moro or less stationary, the only detail which is not stationary is shrinkage, and on this point factories might lose money if the Imperial authorities wanted to charge them shrinkage according to last year, because last year New Zealand bad very insufficient cold storage, while this year they have got very good facilities to keep the temperature at a certain decree, which, will save a large amount of shrinkage. Of course, the shrinkage to the British public in these congested times here and in England is heavy.

Last year's shrinkage camo to about 6 or 7 per cent, before it reached the British' public. It would not be too much to ask the Imperial authorities to keep the cheese in cold storage and the Government to help to have cold storage built in New Zealand, so as to save a big amount of shrinkage, and then oven 2J per cent, would, cover the loss, instead of Inst year's 6 per cent., and tho factories would receive tho difference after the question was settled at the end of the season, The factories,wonld also receive the difference in price if there was any, and It is not too much to ask the Imperial authorities to hand over the cheese to importers in England free of cost to New Zealand, on the ground that New Zealaud cheese is limited in England.

If these suggestions wore given effect to it would mean that a sample account sales showing the cheese sold at Is. id. per lb.- to the British public ,and all charges back to the factory . deducted could be published by the New Zealand Government in the leading papers in New Zealand. If once the factories were satisfied that nobody was getting undue profit, or that there was no middleman exploitations, I am sure ifc would work smoothly from year to year whilo the war lasts.

It will be noticed, that in the Imperial authorities arrangements in England that they are rising their capital to finance the retail grocers in the distribution of the cheese. I would be pleased to give particulars- of this unique system of distribution, as arranged by the : Imperial authorities. I have already : supplied these to the New Zealand Board of Trade'here, and I hope that that section will get control of. the whole of the, butter and cheese going to England, [so that they mil be in touch with tho Board of Trade in England, and so fix up these matters. I understand that the Imperial authorities have taken over the butter from September 3 last on a fixed price to the public, and if the same system is used for the New Zealand butter as I suggest for the cheese, I feel certain it will give entire satisfaction to all butter-prodncers in New Zenland, but providing, of course, that the New Zealand Government had a voice in tho prico ■ the, public of 'Great Britain. One hears complaints from every source aboiit tho high cost of living, and certain sections have asked the Government to reduce the cost of living. Why not start with reducing tho prico of tho coal from Government mines—l am, etc., •, S. TURNER. November 3.