BUTTER QUOTA

Hokitika Guardian, 25 August 1933, Page 3

BUTTER QUOTA

OPINION' OF DAIRY BOARD

THE SITUATION IN AUSTRALIA 'AND© NEW 1 ZEALAND?

4 : The New Zealand -Daiiry "Produce Control Board considers that restriction of production , is; impossible* The, alternative it ( suggests .is the 'establishment _of u system ,of absolute free trade between. New. Zealand aud' Great ’Britain before th'e expiration of the Ottawa agreement. v .- To that end the -Government has been requested by the Board to reduce forthwith, the du.iies on British goods to a point to meet theii increased, cost resulting from the recent, increase in tlie rate of exchange. The problem is proving a particularly, knotty one for the Government to solve. Besides, there is the British Government, as, the othe r party, to, the Ottawa rgreement, to be consulted and satisfied. But the ‘fanner’iS:-interest in imports j»3 iipt greater than this own .particular needs, and already some 90 per cent, of imports for his business a-r e .admitted; duty free and exempt from sale,? tax. The New 'Zealand -manufacturers are alarmed at O'e proposal to admit; duty free British, goods th t will compete with their own. The Government’s idea; -is that the present! problem;: ‘of over' supply of dairy produce from the Dominions to. Great Britain is : a matter for .consultation and coioperdtion : ihi iorder ;to find'a:.way oiiti ; ;" ;

The avertge . price ,of : New, Zealand) butter in London, in March,, 1932; lay! between. 115-3 and 118 s per ewt.; it was down to 63s- to 70s for the last! week -in March, this, year. At 115 s the farmer received the benefit of the 10. per, cent, rate: of .■ exchange on ' London, Now lie is receiving;-25; per. cent., and is obviously very much worse off th fi j-hfie wa B , last.- year ; in - fact, he;- cannot go on at such 'prices. The New Zealand Importers-' Association, represent-, ing interests', long -engaged in the handling of butter., and cheese. in the. United ■Kingdom, ha©( counselled; '.r'greemojit to a policy of -restriction of expotrV °| butter., t-pi -the- United Kingdom* ip: the expectation that wich reduced quantities arriving in this, the only worth-while and frep market for. NewyZealand pro•dnce, the effect• ’of .curtailed, supplies

will, bring with it-an advnce fin prices that will fully compensate for the ex'pense in holding back, further supplies which are mutually agreed to .be abnormal. "■ •

The circumstances in Australia '°,re entirely different where there is fin operation a scheme by which tb© local .market is made., to pay some shillings per -cwt. more, for butter consumed in Australia 1 thariA 1 the price : realised . for -A‘usendian, butter, in London. Thus the butter is compensated ' for law prices abroad be enhanced prices at home. He has, in addition, a very

much’ greaterc local market than! %' the case with the New Ze land producer;

The acting chairman of - the New Zealand Dairy Producers’ Control Board has already shown that- the Dominion cannot entertain: .restriction)? of exports 'of butter'- -because, unlike Australia, lithas a. very limited local market not 'capable of absorbing more than the existing high consumption of 401 b. of butter per head) per mpum. Its-- production of butter has -been increasing at tbo- rate of 10 pe r cent, per annum for some years past. -? '

--‘ Production of- butter for season '(August to May) i? estimated at- 158,000 to 159,000 tonis, and ell that the . domestic market- cain , absorb, heavy .as' its-.. coppriuiption is to-dav and likely to be. is 26.000 tons, the balance being:, available:-for, export. sjfew; Zeaand ' has n: population of l,500 v 0() :(-.Aus•trplia, with:, - :b»He r , a. population oP 6.550.000, and. altvdys the possibility of drought making a.b,sorption of. KuppUes.''efisy. 1 ; . whereas, fortunately, in many, ways, New Zeai ■lafid'has no ground? for fear of -drought or anything of the kind beyond com-; parativelv short spells of dry weather in certain ' localities.

Australia could afford to agree to re-, sfriction of exports of butter to the United .Kingdom ; New Zealand, according to the Dairy Producers’ Cc,n----t-fol Board, could not do anything of the kind without courting certain disaster. . ■