HONEY EXPORT CONTROL.

Hokitika Guardian, 2 September 1926, Page 4

HONEY EXPORT CONTROL.

(To the Editor.) Sir, —lie the above subject and Mr Rentoul’s defence as it appeared in the “Guardian.” The question as issue is: “ Why was the Honey Export Control Board formed?” Was it to be used as a tool to further the interests of the Honey Producers’ Association in enabling their London agents, Messrs A. .T. Mills and Coy, to levy one penny per lb under the heading of advertising and charge 5 per cent commission instead of the usual 2J per cent on all honey exported from Xew Zealand? Is this levy of Id per lb paid into tue account of the 11.1’.A. by Messrs A. .J. Mills with tile object of repaying the H.P.A. the expense which they claim for advertising New Zealand honey in London ? The Bristol and Dominions Company claim they spent large sums in opening up the houey market and several Xew Zealand merchants can claim their bit.

I low many .shareholders in the TULA, were aware that they were being debited with Id per lb lor advertising Xew Zealand honey in London? Many beekeepers wondered why honey was retailed in London at 3s (id per lib glass jar during war years and at present Is fid per carton when all the beekeeper gets in Xew Zealand is Ail to in some cases less than Id per lb. Every time it is the Xew Zealand producer who pays to open up the Home market. When the H.P.A. engineered the formation of the Control Board and asked their shareholders to vote for two Directors ol the H.P.A. did a dozen shareliolers know (I doubt it) that a levy of Id per would he made and 5 per cent commission charged on every ]!> of honey sent out of Xew Zealand? In spite of these excessive charges the 11.P.A. issue a balance sheet and admit that they have Inst Cldlo each ami every year for the last four years.

A balance sheet by the Honey Export. Control Board is anxiously waited for bv the Auckland Chamber of Commerce and when it does appear lot us hope that there will he something doing. I.ast week I asked the President of a well-known association: ” What would you do il the Dairy Control Board made a levy of Id per 111 on all butter exported from Xew Zealand.” Only two words arc printable: “ Fix .... bayonets.” Such

;i charge is unthinkable and yet butter could stand Id per lb better than honey could stand Id per lb owing to the different price paid to producers. A few days ago I was in South Westland and I called on a returned soldier who 'had taken up bee-keeping to augment his income. His wile said he was ill in hod. He got out to show me liis returns from the H.P.A. anil a sample of the honey he sent away. For white, prime 93 out ol 100. lie got 4Jd per lb and for 89 he got the sum of 3?,f1. Look at the mail, his face haggard, his clothes just hanging on him like a sea.recrow. Js this the way we are keeping our promises to our returned men? Jf we had another war to-morrow how many of these men would volunteer?

We believe that Control should get better returns for producers if properly managed, but it should not be dominated by any Association or firm to the hitter’s advantage, if the Alinistcr of Agriculture vested the control of honey in London with the linn ol A. .1. .Mills would lie allow this linn to levy Id per lb for advertising, on all producers ? A recent cable from .Melbourne says that " The first report <•' Ihe Daily Produce ( ■ ntrol Board was’ tabled. . . The Board had undoubtedly secured for producers much bolter returns for export supplies ol butter and cheese than ever would have been obtained under the former system."

The amount of honey exported from Xew Zealand is small compared with toe export of butter and cheese. Tlie export of honey will he less il the excessive charges by the present, members o( the Control Board are allowed to dominate the business. The export of honey, according to Air Rentoul’s figures, are in 1924. 538 tons; in 1925, 788 tons; in 1928 are expected to run into 580 toils.

The question naturally arises who is going to j>ay tlie piper? Shipments spread over the. year are very small find Imtli the H.P.A. and the Control Hoard want ;t cut out of it. It wo employ lawyers to settle the dispute I have no doubt they will get the balance. Too often we hear men with a destructive policy hut they cannot give you a constructional one, hut in the present instance 1 believe we can, without the assistance of the TI.P.A. ff the Honey Industry is to survive and make progress the Minister of Agriculture should encourage producers. Some months ago his slogan was “Increased production.’’ Then let him assist the honey producer as the other producers (have been helped. All honey lor export is graded by a Government grader and should be sold on the Homo market according to grade. Jt would probably take a couple of seasons for buyers to become acquainted with the different grades but with a' market stabilised at white prime 80s to 92s per cwt and light amber prime (30s to 72s per cwt there is nothing to hinder the Minister of Agriculture from calling tenders open first to New Zealand merchants for the season output ex grade stores for white prime 90 and over and white or light amber prime 85 to 89. If producers can get a return of 56s per cwt for the first grade and 51s dd per cwt for the second grade landed into grade store it will just about pay for labour. j When a beekeeper gets a return of 3 : jd per lb for light amber prime he finds that it will land him in the Bank-J ruptey Court. Here is ail extreme

case of a returned man located near Bruce Bay. His export cases, tins and bee appliances are railed from Dunedin to Hokitika, nearly 400 miles, then by steamer to Bruce Bay, then bv dray about 12 miles. He sent by last steamer to Hokitika about 00 eases of honey which will have to be shipped to Wellington or perhaps to Auckland. I,l’ lie gets a return of Tjd how much will lie 'have left for his labour? Today this honey is worth at least 75<T per lb on the London market. I would like now to as briefly as possible refer to some remarks made bv -Mr Bentoul in his last letter in

reference to a three years’ contract which T had with a London firm. I had only made one shipment when Control came into force and this shipment grade store to London averaged 9s Ukl per ease against the following years £1 Is 7d per case under Control. Clause 15 in the Hoirgy Export Control Act says: " Notwithstanding anything to the contrary in the. foregoing provisions of this Act the Board shall not exercise any powers under this Act with respect to the sale of any honey if it is satisfied that there is subsisting a bona fide contract or arrangement for the purchase and sale of that honey made before the passing of this Act.” The Control Board consisting of Directors of the H.P.A. did not wish to allow anyone else to ship honey from Xew Zealand therefore they would not recognise this contract which is a glaring miscarriage of justice. Mr Bentoul also refers to me making n profit of 295 per cent. . . which, he says, leaves him £62 Is 2d clear. Mr Bentoul is like myself he makes mistakes sometimes. I will take this own figures and show him where he is wrong with these figures. My gross

returns Were £To7‘ 5s tfof'>-i2 eases of honey. My production charges from the apiary to London took £95 3s lOd which brings my returns down to Mr Rcntoul’s profit of £52 Is 2d which lie naively says is clear. He evidently forgets the “ overhead ” in running the H.P.A. busines. If J were not engaged in the honey business I would not have to take into consideration the following:—Rent of lioneyhouse, workshop and storeroom, 30ft by 30ft, together with apiary site of 1 aero at 10s a week. £2O. Fire insurance, £3 10s. Interest on £2lO, £l2 12s. Rates, etc.. -£3 As 4d. A total of £45 Gs Jd. Tills leaves me with £lO 14s lOd and no allowance for depreciation or 12 months work.

Add to this, that this season owing to the extremely had summer not one pound of honey was harvested Irani this apiary of 70 colonies. For years past beekeepers have complained about tlie. difference between the price of honey in London and the meagre returns obtained by them.

Sir .lames Allen (.late Higb Commissioner) will be back in New Zealand shortly and I would suggest to ttie A 1 inister of Agriculture the advisability of a conference between the three members of the Control Board, one Government auditor, one exporter ol experience, Colonel Pow, who is Secretary of the Dominion Executive of tlie banners’ Union with Sir James Allen ns Chairman. The object of the confcience to lie for the benefit of producers, to devise ways and means of reducing marketing costs and so give a fan margin to beekeepers in Xew Zealand for their labour in producing honey. At prices obtained to-day tlie industry is doomed as much better returns can bo obtained in other wavs for labour expended. Westland is specially adapted for honey production in an ordinary season (we have only had one bad honey year in twelve years) owing to the abundant supply of native flora and .1. would be very sorry to see the honey industry dwindle away lor want of an adequate return for the cost ol gathering the harvest. I am, etc.. ‘JOHN MURDOCH. Ross, August 27th, 1926.