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Hokitika Guardian, 4 January 1930, Page 4

When writing the other day in regard to the daily factory industry in this district, and referring to tlie drop in prices, the suggestion was made that one means of combating lower prices was to adopt centralisation of manufacture. This advice recurs when reading the latest report on the Home demand. A North Island firm has ad-* vised their clients that their London principals advise that no improvement can be expected for “at least four months.” They state that the present position has been brought about by continued depression in trade, restricting the purchasing power of the public, combined with the atrocious weather recently experienced. This has caused an accumulation of stocks in London, and buyers naturally have been drawing only hand to mouth supplies, reiving on stored butter to help them over any shortage between steamers. Speculative interest is non-exist-ent, and there is no confidence in the market. Production still continues to be heavy in other countries. This suggests that there will lie lean prices for some time. Tt is fortunate that up to the present Canada has been a good customer for New Zealand, otherwise the market position would lie more disquieting still. The low prices have occurred now when under ordinary conditions rates should he much firmer, so that with other countries keeping up

their production, it does not appear likely that, butter prices are likely to soar again for a considerable time. With a drop in prices factories will do well lo review costs of production, and save- where they can to assist the producer. Prices are going to he sub-nor-mal, so that a penny or to on butter fat is going to count in the year’s returns. Economy in production naturally goes with large output and economical running, and to that end centralisation comes into the question. It nas been adopted very generally in the North Island of late, and the suppliers are enjoying the benefit of the step taken. There are facilities here for adopting a similar policy if an understanding could be reached between those concerned. With the good prices of the past, sentiment has had some sway in the matter, hut when prices are down and likely to go lower, the sentiment of the case passes, and pounds, shillings and pence arc revealed in a. truer perspective. Good sense is common sense, and if the latter were exercised at this juncture, it should he possible safely to bring about a satisfactory coalition whereby a centralisation scheme would save in the cost of operating and producing, and a better monthly figure would be available for suppliers. This is ol such direct concern and interest to those specially affected, that the wonder is the matter has not been grappled with long ago.