WELLINGTON NOTES.

Hokitika Guardian, 16 January 1925, Page 4

WELLINGTON NOTES.

- o THE GUTTER SLUMP. ’ (Special to “Guardian”.) WELLINGTON, January 14. The* .slump in butter usually takes place when heavy shipments reach the London market from the Southern Hemisphere, hut this year the slump has inine earlier than usual ami may therefore be worse than was known in previous slumps. The three exporting countries from the Southern Hemisphere arc New Zealand. Australia and Argentine, and from all three oeuntries heavier shipments are going .■forward, and the market is being flooded with supplies. Last year the Australian- make was short owing to drought and the same may be said with regard to Argentine. Rain foil .in Australia early enough to cause comparatively heavy supplies to he sent forward late in the season. This year the conditions are different and there are heavy supplies on the market. .fust how this can be prevented it is difficult to see. It is easy enough to suggest regulation of shipments, hotter business management, but just how this, is to he applied cannot he clearly demonstrated. It seems almost impossible, if not actually impossible. In regulate shipments, because evenfactory wants to get its products away to the market at the earliest possible moment, and furthermore to attempt to regulate the sailing dales ol the refrigerated steamers would end in failure. even if we did succeed in arranging IKr some kind of regulating of supplies our competitors will get the benefit of any improvement in market value. The position bristles with difliculties according to the opinion of one authority who while admitting that the slump in values is due to excess of supplies inclines to the view that values are likely to remain lower for some time to come. This opinion is based on the statistical position which is declared to be against a rising market. The European countries which suffered from the ravages of the war are getting back to their normal produe on. Even Siberia is now declared to lie a formidable competitor and this season there will be an increased amount which will come on the market earlier than usual. The Siberian dairy industry is being developed with British capital and under British supervision and must expand. \\ ilh respect to other producing countries the high prices of the past lew years lias stimulated production, and what is more, close attention lias been paid to improving quality and it is now detinitelv admitted by authorities that both Australia and Argentine butters have vastly improved in quality. Danish butter has not slumped the same as Xew Zealand and Australian butter has and that is because Danish butter Inis a special market where other butters scarcely ever intrude. This nuttier was fully discussed during the slump of last year. Furthermore' it is noticed that Germany lias been taking considerable quantities of Danish butter and this is helping to hold no the market. WHAT IS TO BE DOXE? The authority quoted expressed the hope that the Dairy Onitrol Hoard would do ill, thing rash. The overseas delegation is said to have come hack chock full of valuable information so it is alleged, and this delegation probably lias a patent remedy for butter slumps. This remedy if it exists will no doubt be. made public in due course. In the meanwhile tiic butter market :is reacting In the laws of supply and demand and it will continue to do that to the end of time. The plain lad is that this year's output of butter to in- marketed in Britain will lie larger than last year, probably considerable larger. ;• d prices will respond noconiine;!V. While the market is in the

present unsatisfactory position llmre aie mysterious unoMieial bints to what till* Daily ( out iol Board con 1. -lupin t c One authority iri the Mauawatu says, ■■ Bevolutionai v changes in the system of distributing and marketing New Zealand dairy produce are being contemplated and will he advocated al its com i no; mcolino* J>y ter tain momtiers of tin* Dairy Control Board. Tn fact, one influential member of the Board, who is said to possess the eonliileiico and support ol at least two uT the recently returned overseas delegates, is icported to hold most extreme

\ iews in this connexion, and is expected to issue an ultimatum that will cither bring about absolute control or wreck the Board. A great amount of propaganda work has boon making the rounds of Hie Xew Zealand Press of late, and more or less inspired articles ha\e pointed out the weakness and shortcomings of the present marketing methods. A special and consistent feature in these articles and interviews is the sweeping condemnation ol all f.u.b. seling by New Zealand dairy factories, anil no secret is being made that it will lie one of the first duties of tiie Control hoard to prohibit such sales, and-coniine the whole export to consigning methods." Soviet Russia indulged in revolutionary ehanges and is now paying tiie price; five years ol co-operative effort will not stand rovolu’tionary chrfnges without some very serious results.

HIGH PRICKS COR -MEAT. New Zealand mutton and lamb lire selling at verv 1 1 it*;l l prices in the I.ondon market and this is entirely due to shortage of supplies. M uol is making such good money that sheep larmers everywhere are holding to their sheep and giving close attention to wool production. The position. .Gil remedy it’seli in time and mutton and lamh will again he in ample supply il not irom New Zealand then from other countries. The New Zealand meat board claims to lie regulating supplies from New Zealand and just how that is being done is not clear hut the hut remains that this regulation is alleged to be the cause of dear meat in London