IMPERIAL BUTTER SURPLUS.

Otaki Mail, 9 January 1922, Page 4

IMPERIAL BUTTER SURPLUS.

CONFERENCE RECOMMENDS PURCHASE. AND POOLING WITH THIS SEASON'S MAKE. The critical situation which has arsen in the dairying industry on account of the low prices for butter ruling in England, was the subject of an important conference of representatives of dairy factories held at Wellington yesterday, and attended by about 20 representatives of the butter producers of the Dominion. Mr A. Morton presided, and Dr. Reakes and Mr Singleton, of the Agricultural Department, were present. ! A BUTTER POOL. The result of the proceedings, which lasted all day, was that the producers decided it would be in the best interests of the industry to purchase the New Zealand butter from the Imperial Government at the price named, and to pool it, together with this season's production, placing it under the control of a committee representative of their own interests and of the Tooley Street merchants. It was decided to place on the market only sufficient butter to meet the demand from time to time. The resale of the purchase butter will be conducted under the supervision ol the committee, and any profits arising therefrom will be distributed amongst the producers pro rata Should a loss be sustained in the sale, it will be defrayed by a prorata levy on the producers -on the basis of this season's output. The Government will be asked to assist, together with the importers, by way of guaranteeing payment, and in the event of loss the Government will have recourse to the producer*. COMMITTEE SET UP. A representative committee was set up, consisting of Messrs. T. Bassett, C. Motion, and Sinclair (Auckland). J. Brown and A. Morton (Taranaki), and E. Broadbelt and J. C. Evvingion (Wellington) to bring the matter before the Government, and formulaic details in the event of the purchase being effected and the scheme being , put into operation. The committee I .held a meeting last evening, when ; matters of organisation were dis- : cussed. ' IMPROVEMENT IN HOME MARKET. During the meeting, remarked Mr Morton, a much more reassuring cablegram had been received from London hi regard to the state of the Home market. The demand lor butter had evidently increased largely owing to the lower price at winch u had lately been retailed to the con-, suiners. The present position had been occasioned, in the first place, by the policy 01 the Imperial Government in continuing the rationing 01 the British public for a much "longer period than was necessary. This had been accentuated by the largely-in-creased production hi ail butter manufacturing countries during the present season. The production in New Zealand at the present time was phenomenal; this was principally due to! the very favourable climatic conditions being experienced. MR MASSEY NON-COMMITTAL. NOT PREPARED TO PROMISE ANYTHING. Palmerston North. January 6. Asked to-day if (he Government would provide the producers with the necessary financial backing to enable the purchase of butter stocks from the Imperial Government, Mr Massey told a Standard reporter that the Government had not yet considered that 'phase of the situation. Whether or not assistance would be forthcoming he could not say. The result of yesterday's meeting had not yet been communicated to him, and he was not prepared to promise anything until he knew what, the Government was