CRITICAL POSITION

Evening Post, Volume CXV, Issue 74, 29 March 1933, Page 8

CRITICAL POSITION

REALISED IN LONDON

WAITING ON NEW ZEALAND

Many of those directly' concerned in the consigning and., shipping side of the dairy export trade from New Zealand are sharing the grave concern of producers at the parlous'state of the British market for JNTow Zealand butter, and the persistont fall in its value. From, a member of a largo exporting firm "The Post" learned..today that there was every prospect of the advances made on butter-fat being reduced to 4d or 5d per lb, as compared with 6d to 7d per pound as paid out on the 20th of this month.

"In the face of cables recently to hand from Ifondon," ho said, "one wonders at the inactivity and apparent lack of apprehension of the position on the part of both the New Zealand Dairy Produce Board and the Government.

"Here we are with the price of New Zealand butter down to 68s to 70s per cwt at London, and despite suggestions and recommendations from those who understand the Home position and its effects, our dairy produces, and New Zealand as a whole, are facing "calamity because no one in authority will take a stand and face the position. "A _ simple method of temporary restriction can be carried out with no delay. Is it not worthy of immediate consideration in any attempt to relieve the present disastrous outlook for New Zealand as a whole?

"The suggestion of waiting until our Dairy Board confere with the Australian Board on April 18 is ridiculous. The matter is vital and urgent, and should be handled immediately, for unless something is done butter-fat advances payable to farmers on April 20 will be from 4d to od per lb." Reference was made to two cablegrams from different firms received on March 22, and reading as follows:— "Market demoralised. Nominal 745. Will go lower. Unless quota arranged promptly fear debacle will not be remediable. Cheese market, weaker on account of. butter market.''

'' Opinion majority trade here that New Zealand* should agree to limited quotas promptly, thus curtailing' European imports immediately. Increased prices will more than compensate, and ensure better market Dominion outputs for coming years."

Cables received in Wellington, yes:erday were as follows :-*-

"Market weaker. Business has beea done at 70s. Situation serious owing to delay in restrictions."

"British Government tied by Ottawa and existing foreign treaties and agreements, and unable go farther than present offer of 6 per cent, restriction from New Zealand and Australia and 12 per cent, foreign."