Production and Marketing of Dairy Produce
Sir, —To d layman there is something radically wrong with our present policy both as regards the extension of production and the overseas marketing of our dairy produce. Both Australia and New Zealand, as the two largest exporting countries of butter within the Empire, appear to be following a suicidal policy by individually extending their .production to the. utmost and of competing against each other overseas without combining in a common marketing and advertising effort. Would it not be to their benefit for the dairying industries of these two countries to get together and, subject to the approval of the Commonwealth and New Zealand Governments, to make a longterm agreement regarding the mutual control of this important primary industry? Such an agreement would require to fix the ratio of exports of each dominion in respect of the total combined annual quantity to be exported, thus keeping production in each country within defined limits and preventing unnecessary and uneconomical inter-domin-ion rivalry. The next step should be to fix a minimum price at which first-grade butter is to be sold out of store in London or elsewhere. One dominion alone could not impose restrictions (as was proved to our cost some years ago), but a combination of the two major dairying countries outside of Denmark could reasonably expect a large measure of success in remedying the present unsatisfactory position. If the minimum price reserve was fixed to cover the. cost of production and shipping charges, say at least 8.4/per cwt. in London, no reasonable objection could be offered by the English consumers. This price at the present rate of exchange would return approximately HJd. per lb. in both dominions, thus giving a reasonable minimum return and preventing low market fluctuations which detrimentally affect all interests concerned. I venture to think that a reasonably fixed minimum price would not prove unwelcome. Such an agreement would probably cause adverse comment from Tooley Street, but can you tell me.of any other manufacturing interests which would do business on the basis of “give me what you like for my goods irrespective of the costs of production and marketing”? Denmark alone could not at any time supply more than a proportion of. England’s requirements, and even if unthinking opposition was raised at Home to a price-limiting policy on our part, our butter would still be required in large quantities but at a more reasonable return to the producer. My advice to the dairying industries concerned is to take a long view and to get busy immediately it they want any security of tenure tor themselves in the future. —I am. ®t c -> BABE. Wellington, January IS.
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Dominion, Volume 28, Issue 98, 19 January 1935, Page 9
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445Production and Marketing of Dairy Produce Dominion, Volume 28, Issue 98, 19 January 1935, Page 9
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