BUTTER MARKET CONTROL

Hawke's Bay Herald-Tribune, Issue 16, 3 February 1937, Page 4

BUTTER MARKET CONTROL

Twice witbin a week meSsages from Lobdob have attributed the qiiiet tone of the m&fket for Now Zealand buttef to the lack of specuiativo demand, a factor that the Government 's marketing policy is designed to eliminate, "The butter market remains.efratic,'' said a recent feport. "Although thefe is a steadier tono, there is a pnzzling lack of speculation in overseaS varxeties as the resuit of the New Zealand control." This control is exercised at both eads by. the Government, says the "New Zealand Herald^" commenting on the pesitlon, In the Dominion buying and consighment fof export has been prohibited, affecting about 20 per cent, of the trade; in Britain saies by the Government have been restricted to the Iarger buyers, who^ to use Mr, Nash's definitlon in an official statement, are to be uefficient, genuine distribiitors,*' Thus a large numbeiv of former 'bidders have been shut out of the New Zealand butter market, Oue object is to reduce solling eompetition, but, uu- , fortunately, buying eompetition is reduced in equal measufe. Anothcr object is to assure certainty and ^ontinuity of SUpply as a factor in price stabiiity^ But what is likely to be the effect on the reduced number of buyers when they know supplies of New Zealaud butter are certain and centinuous? They have no pressing motive to bestir them- ' selves and the stable market tends to become a stagnant market, There is no anticipation abotit it, no flexibility and no life. Meanwhile the speculative demand has been diverted to free produce, to Australian and Baltlc butters, to their benefit and New Zealand 's detriment. New Zealand may have cause to rue its absence from her great dairy trade,