WELLINGTON NEWS

Hokitika Guardian, 4 March 1927, Page 4

WELLINGTON NEWS

BUTTER AND THE HOARD. (Special to “ Guardian.”) WELLINGTON. Murcli 2. Vci'v mineral alarm is felt here at tiie position of the London butter market. particularly in relation to Now Zealand's butter. A recent cable message stated that the market as in an unsettled condition, traders being unable to understand the New Zealand Control Hoard's sudden lowering of the price by 8s after raising it 2s a few days ago. The uncertainty regarding Now Zealand price movements is causing buyers to pay more attention to Australian butters, which are decidedly good value at Is below New Zealand quotations. The reduction of Ms per ewt has not stimulated consumption notwithstanding that the big multiple shops and blenders are said to be almost bare of stocks. It would appear from the evidence available that except at the outset of the marketing controlled butter, when the price ol finest was lixed at 150 s. the limitation or fixed price of New Zealand butter lias been above the economic basis. Since the beginning of the season up le about the middle of February the sales of controlled butter have averaged about 2d.000 boxes per week, resulting in about 300.000 boxes accumulating in store by February JStb. This goes to prove that the price was kept above the reasonable level. One effect of this was that it helped to clear the stores of last season's butter at higher prices than would otherwise have been the ease,:md perhaps it was intended to bring about this result. Between February JHtli and 28th it was expected that 111.000 boxes would have reached London, that is if the vessels carrying the cargo arrived according to anticipated dates. Willi this addition there would have been on February 28th about -Ill.OOt) boxes, hut if the average rate of sales was maintained about 10.000 boxes would have passed into the hands of distributors, leaving say about 300.000 boxes in store. The quantity in arrive during the current month is 330,000 boxes and deducting average sales for lour weeks there would be added to the accumulated stock 225.000 boxes, making a total of 015.000 boxes. The current prices of If't's to 108 s cannot bold and a further reduction may stimulate the demand. Seven >c uni! sales gn up to an average of -10,000 boxes that would not bring much relief to the situation. The Hoard through its London Agency has followed the disastrous policy pursued hv factories last season and which resulted in heavy les-cm, and in many instances to reclamations of very sub-

stantial amounts. The same serious results must be experienced in the cur-

rent season, and one authority on the matter after closely examining the statistics and with the latest cabled information from London estimates the probable Ins.-, at a million sterling, which the dairy farmers will find it iliuiea.lt to bear. It is understood that the importers who provide the finance are becoming very restive, and it Is quite likely that .the advances to factories will be cut down shortly. The statistics and the facts as they are known are to lie placed before the I’rime Minister this week and important developments are anticipated. .Mr W. A. Goodfellow, one of the members of the Dairy Control Hoard, left by tlie s.s. Makiira on Tuesday for London,' but the object of bis visit is not yet knov.il. It is In lieved that he is going on private business entirely. Practically all that was predicted is happening. but the advocates of control have treated all such warnings as the biassed views of interest! d parties. Even it tie Government refuses to take action it is expected that the next election of members of the Hoard will result in a majority against compulsion and price living. It must be recognised that the ' big distributors of our butter have not merely lost confidence ill the Hoard but j

»ro al.-n iinuifumi.'.tic: to its operations. Some very interesting: developments may In: expected during the next few weeks. The ultimate effect must he good, for the present adverse conditions must, force upon all concerned the desirability of reviewing the whole control system and introducing drastic changes where necessary. The host (curse that can he pursued is that suggested recently hy Sir George Elliott, Chairman of the Hank of New Zealand, and that is to amalgamate all the control hoards, lor after till their objects arc the same, deprive the new hotly or the right of control and price fixing, and let it carry out the true functions of a marketing organisation. Research, Ammo:', advertising, exploring new markets, preparation of produce for markets, grades, qualities, brands.

etc., would give such an organisation a vast amount of work that would he