CONTROL OF BUTTER

Hokitika Guardian, 28 June 1920, Page 4

CONTROL OF BUTTER

N.Z. ACTION DISCUSSED,

By Kleclrir Telegraph— Co >yi iglit.i

LONDON, June 25

The decision of* New Zealand farmers lu distribute butter and cheese through the British Wholesale Co-operative Society has disagreeably shocked the Toole.y street dealers (middle-men), who admit the decision seriously affects them. Agents declare it is poor reward for the years devoted to popularising New Zealand dairy produce. However, ii is not altogether unexpected. The agents advise the New Zealand socialistic pre-disposed farmers to reject the offer of a supposedly socialistic British oiganisstion. hut the agents declare the farmers will find co-operative distribution very different from GLveriiinent control, and not a substitute therefore. It is the basic principle of a co-operative society to buy in the cheapest possible market, to enable its own shops to competel with private retailers. This in the long run is bound to conflict with the fanners object of getting the best price. The step means the farmer is placing himself in the bands of one buyer controlling only one-tenth of the total trade of the country. It also ineans_tliat Now Zealand butter will lose its old markets, ns the Co-operative Society as present largely sells Danish, and private retailers will refuse to sell New Zealand owing to their antagonism to the Co-operative. They will be able to get more Danish and sell it in competition with New Zealand. Agents, however, do not contemplate counter-action. They say the Now Zealand farmer is free to sell as he chooses, 'nicy are confident their experience will show the wisdom of the old policy of trusting to private traders. Some agents point out that Ministerial replies, cabled on 17th and 21st June, indicate there is no immediate danger. They believe a new situation may arise before the trade is de-eontrolled.