WELLINGTON NOTES.

Hokitika Guardian, 11 February 1925, Page 1

WELLINGTON NOTES.

CONTROL OF BUTTER EXPORT. (Special to “Guardi"n”.) WELLINGTON, February !). The decision of the Dairy Produce Kxport Control Jioard to exercise control over the exports of-blitter is being Ireely discussed by business men, hut it is difficult to extract an opinion from the exporters, that is those who make f.0.1i. purchases. They define all invitations to express their opinions on the ground that whatever they might say would lie twisted to an attack on the Board. The principle of control urns unanimously accepted hy the Board hut the details of the control are to be determined later. It is stated, however, that the existing channels for the disposal of dairy produce would be used as far as possible, hut the right of final distribution must he with the Board. Many people are curious to know what this “ final distribution must be with the Board ” means exactly. If say, a Toolov Street linn fniys 100 tons of butter f.0.1i. does it mean that they cannot dispose of the butter how and when they please, but must first secure the approval of the Control Board. If this is what is meant will it not kill the f.0.1i. businessP This point is agitating a good many interested in the trade. Then again business men are wondering why the Dairy Board should require a London office, under the control of four representatives, two of whom are to he members of the Board, one a Govern meat nominee and the fourth a commercial manager, and from what can he gathered the latter is to he a London man and if rumour is correct the position is cut and dried for Air J.B. Wright, the London representative of the New Zealand Dairying Association of which Air Goodfellow is the managing director and Air W. Claude Motion the chairman. It is stated that Air ATution is to he one of the London representatives and possibly Air Thacker, the South Island representative who toured Great Britain and became a convert to absolute control. The Government representative may he classed is a figure-head. Such a hoard would not represent New Zealand, but the Waikato and the New Zealand Dairying Association in particular.

BUT AYFIY THIS EXPENSE? This is the question asked on all sides. The .Meat Control Board has not disturbed the existing methods of business, and is content with a single representative who was sent to London from New Zealand. The Dairy Control Board's London Agency must necessarily cost a lot of money. It is not likely that the two representatives from the Board will he content with less than .Clooo a year and the London manager will want at least as much as Air Forsyth of the Meat Board, and that is 1:2.(M>0 a year. Big salaries are the order of the day and the dairy farmers must he prepared to pay for if. It means a further deduction from the milk cheques. It is urged hero that the Board follow the example of the Meat Board which has a larger experience. It is claimed for the -Meat Board that it him been successful in regulating sh.ipm.enls and the prices for meat are therelore satislactorv. The high price of meat in the United Kingdom is the subject ol inquiry and all the evidence given so far shows that there is a shortage ol suppleis particularly of mutton and lamb. There is less lamb going forward from New Zealand because fewer lambs are being offered for slaughter. The sheep farmers are growing for wool and are increasing their (locks for that reason. It is the general world shortage of meat that is responsible for the high prices and the high prices will induce farmers everywhere to give close attention to the breeding of stock.

A CRAZY IDEA. ('i>! ll ti]erei;i 1 men in "Wellington t\h<> have no direct interest in the trade characterise the idea of absolute control as a crazy notion. They argue Hint any attempt at absolute control of the marketing and distribution of Xotv Zealand butter must prove disastrous. The butter export trade of New Zealaud is not a tiling of yesterday; there is a (pinner of a century of stupendous efforts of producers, distributors and shipowners concentrated in the development of the trade. Brands of good quality have established valuable good will, regular channels of trade exist, and there are now thousands ol regular customers. Would it lie wise Lo violently disturb these conditions by setting up absolute control? Obviouslv the intention is that the T.ondon agency should hold the butter for fixed prices. That in itself would (lesIrov goodwill for buyers must have a continuous supply, and if they are unable to obtain New Zealand butter they will take Australian and Argentine, Clio quality of which is steadily improving. The policy of consigning C-JO. 000,0(10 of butter and cheese to an open and uncertain market and for a syndicate of four half-baked oommereial" men to lix or control the the prices seems to he eminently stupid. r l he Danes make no such mistake. They do an extensive f.o.b. trade and persist ill doing it. recognising that the buyers are as keen as the, producers to see prices maintained. The dairy farmers have now no voice in the mailer. When they permitted the Act to lie passed they voluntarily divested themselves of all right to control the marketing of their produce. That rhdit now rests nominally with the Board, hut actually with the Minister for Agriculture. Ajl the dairy farmers can do is to make sufficient noise to scare the Hon. W. Nosworthy.