WELLINGTON NEWS

Hokitika Guardian, 19 June 1925, Page 1

WELLINGTON NEWS

MARKETING DAIRY PRODUCE. (Special to ‘‘Guardian”.) WELLINGTON, June 17. fn hi.s speech making campaign in favour of absolute control for marketing dairy pioduce, Mr V,. Grounds, Chairman of the Dairy Hoard tried to gj vi- his various audiences the impression that a whole army ol speculators, mom colds, and profiteers were

liu.'V exploiting the dairy farmers and that absolute control under an irresponsible li-.ard was the only safeguard against it. It would scarcely he lair to say that Mr Grounds does not know hotter. f.->i he does, but it suits hi.s purpose tit give this false impression to those opposed to absolute control. Mr Grounds' attack on the exporters has not been allowed to pass unchallenged. A Wellington exporter empha-

sises the lie t that there it no mystery about the dairy industry. Suppliers, shipments, market movements, prices and prospects were being recorded every day. and factory directors must lie verv dense or very neglectful of their duties if they were not well posted in these matters. There is nothing hidden, nothing concealed, and it is practically impossible to spring a surprise in the producers. It would be a reasonable thing to say that during the past 2-j years a period covering the development of the dairy industry. the exporters at this end. and the distributors at the other end had paid the very closest, attention to the interests of producers. TL was their job lo maintain the quality of their servile just, as it was the job of the producers to maintain the quality ol tlieii butter and eliee-se. It was to the ,-redit of both exporters and distributors that they had readily accommodated themselves to circumstances us \hey arose, and could challenge the very closest investigation ol their dealings with the producers and consumers. The exporters and distributors were not speculators in the offensive sense in which the word hud been used. They did their business on ,i strhtlv commercial basis, expecting n reasonable return for their services. They neither “bulled - ’ or beared - ’ the in-irke:. Ihe official figures accepted by all the authorities showed that prices always were subject to the law ol supply and demand, and that retail pric-s were increased or decreased in fair proportion to the wholesale price. \bsolute control means the abolition of f.o.b. -ales, or what is the same thing, that all butter and cheese must lie marketed oil consignment. The producer* now have two strings to their how. i |,ey may either sell f.o.b. the whole ,* j- part of their make, or tliev may

consign the whole or part- to distributors whom tliev know and who have served them well. Under absolute control the factories will have no option. Their control of butter and cheese eeasc, the moment they reach the cold stores and are ready for shipment. The Dairy Hoard attend- to the shipping and marketing and no matter what fool misi .ikes the Hoard makes its member* cannot he catted to account. The Board has power without responsibility and factories have no recourse. Personal control over personal properly vanishes, and herein the extreme Labour Party is furnishes■ with. to them. .. ycu'v sat.Ufnetovv precedent, find they are applying it in their land policy. The Labour Government when R gets info power will enact that no land eat. he sold except to the Stale, just as the factories cannot sell butter or cheese, hut must consign through the Dairy Board. Apart from this it may ho asked : Is ii wise In abandon f.o.b. sales? If ; ,1| the butter and cheese is held cm Consignment Tooley St. will run id market risks and need buy only from hand to mouth. By refraining from buying consignments would accumulate and with accumulations the market would weaken. Finance has broken the wool market and finance will break the dairy produce market under the Board's scheme of absolute coni ml. It is expected that this mailer will come up for consideration during the .session, and it, is perhaps significant that the Order-in-Council authorising absolute control has not yet been issued. CLOSE OF THE SEASON. 'flic export season is practically at an end and what remains now should he shipped during the next few weeks. Of wool ilier is said to he between 50.000 and 00.000 hales bill, some of this will be shipped to catch the November sales in London. Of frozen meat there is a fair quantity to go forward, hut as the Aleut Board claims to he regulating shipments, whatever is in store in the Dominion should move out steadily. Theie was recently stated to he about: 120.000 boxes of butter in store, hut „s some of Hu’ stored butter in London lias been cleared, there is no reason lor holding supplies in X.Z. except fur local consumption. Taken all round markets have not come up to expectations; prospects at the opening seemed extremely good, hut values ha\e smarmy declined. Wool lias U*en the chief victim, but even wool prices are well above wlmt they were under the commandeer and those price* ic considered good. Frozen meat, owing maiiilv to scarcity of mutton and lamb, has sold very well, hut here. too. prices have not maintained the earlier promises. Butter and cheese eased a little Imt the drop has mu been sufficient to wai rant any serious complaints. Tie cln.sim*' session (him Li* a - icwot 1 with mhih* .satisfaction, hut it is undeniable that difficulties of finance have in the past few months affected all markets with few exceptions. In the next season finance will play a far greater part in regulating the markets, for the Empire is now on a gold standard and there is everv indication that during the second half of the year monetary .stringency will he experienced.