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Hokitika Guardian, 28 March 1927, Page 2

TlimtE is still much difference of opinion about the butter outlook, but there is at least this satisfaction, stocks arc being cleared, which is so far satisfactory. as prior to the price lifting, the commodity was a glut on the market, and a harrier to future business. The price was lowered to effect tile clearance, hut that was a penalty necessary no doubt to disclose the reality of decontrol in price. _ There is still a divided opinion among the farmers, but the trend of business at present indicates that a decontrol will be necessary if New Zealand is to find a permanent place on the London market. The Dominion cannot rule that market, and it is obvious it must in turn be ruled by it. It is one tiling to fix prices and another to get them. Most folk are anxious to get all they can, and then are not above asking for more. But. higher prices cannot be demanded with suet-css on the London market. The trend of business there seems to make it all too obvious. Free trading in produce in Britain has been maintained for so long and the odds against Now Zealand in. the matter arc so great, that tile country is not in a position to force its butter on the London market at its own price. The big buyers, or purchasers, or speculators —call them what you. will—have their own methods of business and are strong enough when their methods are attacked, to combine and take a hand in “control.” That has been manifested very clearly already. At the same , time, it was not an unexpected development. The outcome was anticipated very generally by those familiar with marketing in Britain. The butter trade will find a market always in England, but it is manifest prices must fluctuate—as for other food products. These commodities cannot he stored indefinitely, and their production is not uniform. There must be fluctuation in supplies all over the world, and prices will be affected accordingly. New Zealand is the most remote of the producers, and cannot rush supplies on the market exactly to suit prices. The Dominion produce must of necessity, in the great bulk, take its chance in the general run of trade. On that account it were wise to seek to retain the goodwill of the Tooley Street merchantman, rather than to antagonise him. For the present the New Zealand farmers are paying dearly for the experience they are gaining, and it is unfortunate for the country as a whole that it should be so, but from now on it is possible to make a fair recovery.