BUTTER PRICES

New Zealand Times, Volume XLVI, Issue 10614, 12 June 1920, Page 9

BUTTER PRICES

AND A FREE SV3ARKET PRODUCERS' COMPLAINTS. REPLIED TO BY PREMIER. Refer rin« yesterday to certain statements made by Mr Goodfollow, of Auckland. and others interested in the buU ter trade of the Dominion, the Prune Minister said that, it was just as well to clear the matter up so that both Producers and consumers should understand Vhat the position was at present and what had .been done by the Government. "X see" (stilted Mr MassOj) '■that Mr Goodfollow takes.no exception to the Government’s action in liouinu, back a quantity of butler sufficient to supple the local • requirements _ot the euutury until the current season's mnfc-i is available; but 1 have to correct huu on one or two other important point;-' For instance, ha says we have -*-oA*> boxes of butter in New Zealand i»tu pared with 100,000 boxes last year, t hat may bo correct so far as the actun figures are concerned; but ot tne -m.COO boxes it h«vs already been, arranged to ship some 30,000 boxes on account ot tne imperial Government. TO AVOID LOCAL 81/TTEE FAMINE-, ‘■Last season the usual custom was followed. and it was thought, that sutiicient butter had been retained m tmcountry for cur own. requirements; nut.. ns a matter of fact, the quantity k'P was exhausted soma considerable taut before the end of the winter, and as a consequence, in the • late w inU i and early spring ‘ there woe. something approaching -a butter famine. I his seasou tho department has kept back moio than the usual quantity so as to avoid a similar difficulty to that which uas experienced hist 3' ear. But whci© M. Goodfellow goes wrong again, is in sayinsr that the Government intended to appropriate tho butter ill store now for the purpose of supply^ l # the local maiket in competition with the new season s make. That is not what is intended at ail. Mr -GoodfeUow mentions that the prices in are much higher than tho prices in Zealand. it his statement is correct, and any considerable boianco of ihe present seasons butter remains at the end of the winter, that balance will probajbly bo used tor the purposes of supplying- the local market; but the ©fleet of doing- this wiU. according to Mr Goodfollow himself, be to allow next season's make to be placed in a better market at a, higher price. I am somewhat surprised at a keen business man missing this very important point. NO OBJECTION.

“As to other statements (that wore made to the effect that the Government did not assist producers to obtain a reasonable price for their butter, I met, as representing the Government. a. very largo meeting of producers interested iu the butter industry some time ago. They asked mo whether the Government had any objection to their obtaining a tree market in England. I said ’not the slightest.’ They asked me . then to communicate with ■ the Imperial authorities, requesting a free market for New Zealand butter, and this has been done on more than one occasion. On April 19th 1 dispatched the following tele, gram to tho High Commissioner for Now Zealand ; "With reference, to your cable of Mateh 39fch, Dominion butter committee discussed views Ministry of Food with me to-day and after full consideration of 1 heir request that producers should be allowed to ship their produce through tho usual channels, even if only benefit of fixed price to consumers can be obtained. As an alternative committee requests that Ministry of Food accept the produce and allow full fixed retail price subject fo the usual charges for distribution provided this is not less than highest' price paid for butter purchased elsewhere bv Ministry of Food.’ Then, later, the following telegram was also sent to the High Commissioner: ‘Meetings of butter and cheese producers held in different parts of the Dominion liavo officially communicated to me that they consider action of Ministry of Food in planing restrictions on the free import of butter and cheese in United Kingdom is unfair and inequitable. They consider that as citizens of the Empire thev should be allowed free market for their produce or that Ministry of Food should take over butter and cheese, especially butter, and place, it on the market and return to the New Zealand producers price realised for the /mo less charges for storage, freight, distribution. etc. Please take stops to convey these representations to Ministry of Food- and telegraph reply.’ GOVERNMENT’S RECORD.

I wAnt to say to tho butter producers of this, country- that tho Government have left nothing undone in their interests right through the war ppriod. When I came back from England on the first occasion, I found that their business was being carried on under most unsatisfactory, conditions. They- bad a free market at 'that lime, but they were being made use of in many cases by speculators, who, when shipping was scarce, were able lo buy'at a low price, hold it for a few weeks, perhaps, until shipping ‘became more plentiful, and then make a big profit. 1 advised 'them that there was only one satisfactory- course open to them, and that was to sell to the Imperial Government at the best price they could get. This was done, and I know from my own experience that the results were satisfactory. When tho following season came round, an increase in the pVice of butter in England had taken place. After consultation, tho producers asked mo to conduct the negotiations for them. I did »t>, and the price wau increased from 157 s with half-profits lo a flat rate of 181 s per cwt. This has stood until now, but going back for a moment—ivhon I came back on the first occasion I found producers intensely dissatisfied with tho butter-fat tax then in opcpratioli. 1 asked the Government to do away with it, and my request was acceded to. Later I asked my colleagues to agree to compensate the producers for the difference between the price at which butter was sold locally and tho market price in England less expenses, and this was also done. ,£350,000 EQUALISATION. Since that time nearly ,£350,000 has been distributed amongst butter producers in this way. In 1917 the negotiations were very lengthy, and "conside,r able delays bad taken place; and, on (bis account, when November came along no money had been remitted to Now Zealand for the purpose of paying tho producers. 1 borrowed -£600,000 from tho War Expenses Fund, paying interest for it, and the producers got their first cheque of tho season in this wayThese facts speak for themselves! nnu, while I know that there is a good deal of wire-pulling going on at present and ninny statements lining made which

are incorrect and misleading,, it is only right that I should remind producers and others of what the Government has done for them, and not only lor them, but also for other producers as well A lot of the correspondence that has tal«n place with' regard to these matters is in print, amt 1 am quite willing to supply it to .producers or lo newspapers m any part of New Zealand, unci ask iI 1 /' 1 ) 1 draw their own conclusions. has been better pleased than myself to seo ‘that there has been a very marked increase in the production of both butter and cheese during the last twelve months. I hope the coming season will bo just as good, and that sausluctoiy prices will be realised. WHAT IS BEING DONE.

What is being done at present is Hus. so far as the local market is concerned : For a considerable time past the puce of butter to local consumers has been kept at a -reasonable level by mean® yt an equalisation fund voted by lari lament, under which tho difference be-' tween the local price and the cxpoit value of Is 7id per lb,-as fixed by the bargain with the Imperial, Government, has been made up to the producers, who thus received the same price for their butter whether it was exported bn behalf of the Imperial Government or so.d loenllv, storage charges being also Paul from‘'this fund in inspect to butter held in store for local consumption. The same procedure will continue now, so far as the butter produced during the currency of the existing contract with the Imperial Government is concerned. This contract terminates on July 31st; and, ns the season’s baiter-making operations have now ended, the quantities available for local consump tion can be quite accurately determined, and these quantities will be sufficient to supply local needs for some time to come. The price to tho producer will bo tho same as has ruled throughout the season, but owing to additional charges which have to be met, tho price at which the butter is issued to distributors has had lo be increased from Is 5d per lb ex factorydoor to Is 5?,d per lb ex store or f.o.b. coastal steamer. Tho producer, however. receives, with tho Government subsidy, Is 7Jd.