FREE MARKET WANTED

Hokitika Guardian, 20 April 1920, Page 3

FREE MARKET WANTED

FOR NEW ZEALAND BUTTER.

UNPOPULARITY OF IMPERIAL COMMANDEER. BUTTER COMMITTEE AND PREMIER. WELLINGTON, April 12. The Prime Minister informed a “Times” representative that inquiries had been made of him by the Imperial Government, with regard ..to the terms, if any, upon which the New Zealand butter producers will sell to Britain their exportable surplus of butter for 1920-21 season.

“I believe,” added Mr Massey, “that .• the Dominion Butter Committee wants to meet me to discuss the matter about Friday next,” No terms had been mentioned to him, lie stated, by either side as yet; and of course, he could not mention them if they had been. It was simply an inquiry by the Imperial Go- j vernment as to the terms on which tho coming season’s output could be secured.

UNTIL JULY 31st. Tlie existing Imperial or “commandeer,” for tlie purpose of the exportable butter outputs holds good until July 31st next. The operations under the commandeer commenced in November 1917, since when 1,797,430 boxes of butter has been purchased by the Imperial Supplies Department on Imperial Government account, and on March 31st last, there was a further 77,482 boxes in store ready for shipment. The amount paid*by the Imperial Government to date for New Zealand butter is upwards of £8,143,f!00 The price paid lias ranged from 157 s per cwt for first grade butter in the first season, to 181 s cwt in the 191819, with proportionate prices for other grades. In tlie first season tlie Imperial Government also shared with the producers 50 per cent (amounting to £308,000) of its profits on the sale of butter. DAIRY FARMERS WANT FREE market.

It is understood that the New Zen land butter makers are not inclined to favour the continuation of the commandeer after July 31st., their desire being to secure a free market, and so obtain the present high world’s pnee for their butter. During the war, they point out the British Governmest recouped itself for the high ‘prices paid 'for Danish and other Continental butter during that period by the low prices paid for New Zealand and Australian blitter; and now that the war is over, the New Zealand producers, who always looked askance at tins system are verv unwilling that it should continue. Failing the renewal of the commandeer, the British Governmen might, of course, control tlie price of all New Zealand butter landed in the Old Country; and! in that case, it is pointed out that the only resource for the New Zealand producers would he to endeavour to open up foreign markets for their’* butter, practically all , of which has hitherto gone to Esgland. j

THE PRICE OF BUTTER. A point of greater interest to the great bulk of New Zealanders, ‘ no doubt, is as to the price of butter in tlie local market. Consumers arc anxiously asking what will be the result on tiie local price if the dairy farmers win. their free market and secure the extreme world’s price at the present time. Will the Government it is asked, subsidise the butter-makers, as was done last season, to supply the Now Zealand market at the present price? WHAT PRICE MARGARINE? Meantime margarine-producers scent a possible opening in the Dominion, as the following extract from a circular recently’ sent out by a leading Ncu Zealand exporting bouse shows:—“We have been pondering whether if butter prices in New Zealand were increased very much ,the use of margarine would lie encouraged out here as well as in Canada. The position might be forced upon us. When one notes that the average price of Canadian butter to producers was 44(1 cents (normally 2s 4d per pound) for the season, it can easily be imagined that, especially in the big centres of population, oleo-margarine would meet with an increased demand.