BUTTER AND CHEESE

Hokitika Guardian, 22 August 1929, Page 6

BUTTER AND CHEESE

■ THE NEW SALE CONTRACTS. WELLINGTON, August 20. The chairman of the Exporters’ Association, v discussing the reports published in Dunedin last week, said they could not understand why there should be so much concern about the matter of dairy produce contracts in the south, and gave the following facts:— (1) It ibecame apparent that the old contracts were out of date, and therefore a committee of the Exporters’ .Association was appointed to draft fresh contracts in .cable consultation with the London importers. (2) The few alterations .to what have existed for years are nearly all caused by new Government regulations and the Dairy Board’s shipping policy. « • (3) When the drafts won? completed they were submitted to the Board as the authority for the factories in such matters. (4) The Board has not yet ratified the cheese contract, nor have Hie butter or cheese draft contracts•been approved by London importers. (5) All trading in dairy produce in London is ruled by the London Produce Exchange rules, and therefore the New Zealand contract must ap2>roximate to that if the factories expect the utmost market value. (6) The only point in the butter contract which, by the way, is the only one which lias been approved by the Board in connexion with which the South Island producers have taken exception, is the clause providing that the basic price shall lie ft>r finest grade. The fact is that for the last two seasons contracts have nearly all been made for finest, with allowances for first and second, and for the coming season approximately 400,000 boxes of butter for August-March shipment have been sold f.o.b. on the basis that the price offered is for finest, with a reduction of id per lb for first grade. These sale 3 were nearly all made before the standard contract was considered by the Dairy Boaid.