WELLINGTON NEWS

Hokitika Guardian, 29 May 1926, Page 1

WELLINGTON NEWS

BUTTER AND CHEESE PRICES. (Special to “ Guardian.”) WELLINGTON, May 25. ft is difficult to understand how the London Agency of the Dairy Control Hoard arrives at its quotations i'oi huttor. The Higli Commissioner’s wilile message to the Agricultural Department gives the quotation for finest •salted New Zealand butter as IGSs to 170 s per cut. The quotations received by the Bank of New Zealand, and the New Zealand Producer’s Co-operative market association arc the same, but tlic quotations received by the Dairy Contro Board from its London Agency are 170 s to 172 s per ewt, or 2.s per ewt more than the others, and one is anxious to know which quotation to accept as correct, and how the discrepancy comes about. The preparation of the official quotations is the work of the Prices Committee of the London Produce Exchanges, and very great care is taken by the Committee to obtain accuracy. The official quotations are posted up on a blackboard in the principal chamber of the Exchange where they may be seen by the members of the Exchange and the Press representatives. ft is obvious that it is these quotations that are transmitted to New Zealand by cable by the High Commissioner, and the other organisations. The London Agency apparently has other sources of information, or the members of the Agency are giving inaccurate information with the desire of making the position look better than it really is. The London Agency of the Dairy Hoard is costing the producers a great deal of money, air Wright whose services have been engaged since May Ist gets the respectable salary of £3,000 per annum, and the other members are all well-paid. The producers in New Zealand have at least the right to ho suplied with reliable and accurate information regarding the market

prices ami movements. However, all sources of information agree that the market is slow and that lower prices are to be expected owing to the accumulated to such an extent that they must bo-marketed in competition with the fresh butter from the Continent of Kurope. Furthermore, the wholesale dealers soon became possessed of the knowledge’ of the cpmntities in store, and immediately regulate their operatinus accordingly. They buy from hand Lo mouth knowing that the rpiantitifc. in store must oonr on the market, -ither in reasonable 1 'antities, or in a food. If the latter,, ..cavy purchases m the part of the wholesaler may land

him in heavy losses. The marketing of dairy produce is lull of intricacies and requires a great deal more study than has been given to the matter by the Dairy Control Board. ' COMPULSORY CONTROL.

A Loudon firm of wholesale dealers in Dairy Produce cabling to their New Zealand agents last- week say: “ ll' control eventuates, and is eondueteden present lines iyill damage New Zealand dairying considerably.” Buyers are already endeavouring to stimulate other sources of supply. Continental production increasing steadily each! year.” There is a. great deal of truth in the latter contention. for the poverty stricken people of Europe must j

increase their production of marketahl

commodities if they are to make any economic progress. Compared with the pre-war period the prices are very high, and the high prices are stimulating production everywhere. Very care, fill attention is being paid to dairying in every producing country, and not only is production expanding, hut there is also a great improvement in the quality. Two nr three seasons ago New Zealand butter usually sold at os

Ito 10s nor ewt above the Australian product, but now tlie margin of diirerence is only 2s and there have been occasions when no difference existed. The quality of Argentine butter is also improving and the same may bo said of Siberian butter. With respect to the system of feeding the market adopted by the factories, this lias worked to a certain extent, but like all marketing sobem.es, it bns its risks and its pitfalls. It is very doubtful whether the Control Hoard could adopt sueh a system without drawing upon itself the most severe criticism. Tf the Control Hoard endeavoured to hold up tlie large stocks of Now Zealand butter arriving since January, the agitation through the I'lnglish I’ross and the comments in the House of ('ominous would have been too much for the Hoard and for New Zealand. There has hoen some comment in I lie Condon newspapers of the holding up of butter, but the Control Hoard was able to say it had nothing to do with that. Supposing it had, could ii survive the resultant agitation and severe criticism. The Dairy Control Hoard is practically a Government Department and that must not he overlooked.