INCREASE IN PRICE OF HONEY

Dominion, Volume 32, Issue 152, 23 March 1939, Page 10

INCREASE IN PRICE OF HONEY

Chairman Of Control Board Explains Reasons

ALL LINES NOW PURE NEW ZEALAND PRODUCE Dominion Special Service. PALMERSTON N„ March 22. "The position summed up briefly is that the price list today of the interna! Marketing Division for pure New Zealand honey of high quality is the same as it was just over 12 months ago lot a lower grpdc blended honey,” said Mr. W. W. Nelson, chairman of the Honey Control Board, in tin address to delegates to the Manawatii district beekeepers’ convention, held at -Massey Agricultural College today. Mr. Nelson was replying to the recent criticism of the increase of a penny a lb. in the price of honey lines put on the local market by the Internal Marketing Department. It. was obvious, therefore, he said, that Hie Government’s policy of maintaining prices at a fair level had been strictly observed by the Internal Marketing Division. In a statement criticising the advance in price, said Mr. Nelson, it was alleged that the price advance was not in accordance with the policy laid down bv the Government, and the recent import restrictions were mentioned as a factor in the advance. In reply lie wished to say that the readjustment in price of one particular line was strongly recommended by the Honey Control Board fo r the following reasons:— "At tlie time the Internal Marketing Division took over the assets of the producers’ marketing company, New Zealand Honey, Ltd., just over a year ago, considerable stocks of honey were on hand consisting of a blend of New Zealand honey and inferior imported honey. This position was brought about by the crop failure of the previous season. The Marketing Dit ision lowered the price of the leading line of a 'blend of New Zealand and imported by a penny a lb., and this action was supported by producers because it was recognized that the price should be reduced to conform' to the fair value of the lower-grade product. As soon as adequate supplies of our own honey became available the Internal Marketing Division put out all lines 100 per cent, pure New Zealand honey, and the recent advance of a penny a lb. on the leading line merely restores the price of that line to the level of 12 months ago. "With tlie exception of the 1937 season practically no honey has been imported into New Zealand for twelve years, and as ample supplies of our own honey are now available to meet local requirements it is obvious that neither merchants nor consumers are adversely affected by Hie import restrictions.

"Tlie operations of the honey section of tlie internal Marketing Division have made possible a stability of prices and grades that could never have been accomplished under conditions of unrestricted, competitive, individual selling on a disorganized market. It is no advantage to the beekeeper to find, prices soar to a high level in a season of shortage when lie has little or no honey to sell and then iind prices fall .to a totally unpayable level when his crop is above average, and 1 am sure the consumer does not appreciate these conditions any more than the producer. Price Fixation. Tlie subject of price fixation was referred to by Mr. Nelson later in iiis address. Tlie board, he said, recently had some correspondence with a number of individual beekeepers, and from one branch of tlie association on the subject of the price fixation according to grade of all honey sold on the local market. He was in a position to say that the board wirs in agreement with the principle of price fixation. To agree with the principle, however, did not justify an immediate application of every particular feature of it without due regard and consideration being given to tlie consequences of such action. Far-reaching changes in marketing procedure had recently been made, and tlie board ln.*lieved that one of tlie many advantages that would emerge front I lie application of existing regulations would be that very measure of price stability so much desired by everyone. The internal Marketing Division now handled the bulk of the commercially-produced honey, and that division had made no representations Io the board in favour of price-fixation regulations. That, together with the verdict of the beekeepers’ own association. would seem Io indicate that tlie desire of most producers was to follow a wait-and-see policy in the meantime.