BUTTER DUMPING

Hokitika Guardian, 24 April 1933, Page 5

BUTTER DUMPING

FORWARD MARKETS

PRICES BEING FORCED DOWN.

(Pei Press Association — Copyright )

NEW PLYMOUTH, .April 23

The interest of dairy circles has been aroused by ail allegation .by Mr Hawke, director of the Pate a Dairy Company, at a public meeting, tlm. certain linns handling New Zealand dairy produce were offering large quantities on the London market at prices much below the pieserit market prices, and were thereby forcing down the prices. Mr Hawke quoted quantities, totalling over 14,000 tons, handled by one of these firms, which, he said, should not be permitted to handle the produce. He also stated that the Dairy Produce Board had been aware of this position for three months, but it had taken no action. He alleged that the object of such firms was to secure cash in order to meet their obligations to the banks. He said: ‘.‘These same firms have been known to sell produce, at times, before it bay reached the market, and I have heard of one occasion when a firm sold dairy produce before it had left New Zealand. To-day I was told that a certain well-known firm is offering cheese on the London market for May delivery at 38s per cwt, at which price the companies .would net only about 10 per cwt, plus the exchange,” ■]. % • v'. ■, : • ; Mr Hawke , quoted the following cable, from "the Importers’ Association of Britain, which, he said, had been received by the Dairy Board and by the. Dairy Companies Advisory Committee: “Recommend instructions should be given to all agents, either direct from the factories or through the Dairy Board, that consignments' of butter and cheese shall not be sold until the steamer has commenced to discharge, and that no portion of the consignments be allocated by agents to a forward contract; the consignees to furnish the Board with any information required to ensure the instructions being carried out. This recommendation "is designed to stop the practice 'of selling consignments, at under the current price before the steai.ner .ties up, thus continually depressing the market.”

N.Z DELEGATES RETURN

EXPRESSION OF CONFIDENCE.

SYDNEY; 23. The . New Zealand da iryiieh’.s . delegatesl were passengers last night for 'Wellington by the liner Wanganella. - Dynes- Fulton, men. interviewed, expressed confidence in the result of the visit of the delegation to Australia. Tilery would ha a much clearer understanding between Australia:. and New Zealand ' to' their material mutual benefit. The visitors were impressed by the courage,.displayed fry the Australian produc'ersij|nmeeting their difficulties of., the* /past few- -years*: and also with the growth of the dairy industry in Australia;-

Mr Fulton said that low prices were resulting from bad economic conditions iit'New- Zealand, and made the lot of the fanning community there extremely difficult. Butter, die said, was retailing in New Zealand as Tow a-s B£d per pound for finest quality. The prices were paid to the farmers for butter fat were the lowest for 30 years. .

DOMINIONS’ REFUSAL OF QUOTA

LONDON, April 21

Butter importers arc generally disappointed at Australia’s and New Zealand’s refusal of the quota- scheme. Danish and other foreign agents claim that as the Dominions have rejected the quotas, foreigners under the new trade a£reemejn|g have free entry as to quantity, and fiitn send the whole of their surpluses; lpre, though they recognise the price tv ill necessarily he very low.

The market is depressed. Australian and' New Zealand butter declined further by about two shillings a cwt.

FEDERAL MOVE ADOPTED

SYDNEY, April 23

It i:s officially announced that the Federal Cabinet has decided to adopt n recommendation against any restriction of Australian butter exports to Britain.

The Prime Minister, Mr .T. A. Lvors, states that the duty of fifteen shillings per hundredweight remains as an impediment to imports of for-, eign butter into Britain.