BUTTER MEN DIVIDED.

Otaki Mail, 11 January 1922, Page 4

BUTTER MEN DIVIDED.

SOUTH ISLAND OPPOSES POOL. After a conference held on Friday of representatives of the South Island butter factories and producers, tire following telegram was sent to the Right Hon. W. F. Massey: “The butter resolution to purchase Imperial butter was defeated at yesterday's Wellington conference, but was carried after voting on the tonnage, which course was objected to. .The South Island unanimously opposes the, purchase, and refuses to participate in any levy, believing that the imperial Fovermuent should itself, through the usual channels, dispose of their stocks. Before any Government action in support of the purchase is given, we hope you will arrange to hear the South Island representatives, also those others present who opposed the purchase.” In their report the delegates say:— “We believe that if any attempt at bolstering up the market is made, the serious position which exists to-day will continue over the next season, whereas if the butter was sold by ih« Imperial Government should itself, it would rapidly go into consumption and help more quickly to overcome tlte present slump that exists in the British markets. The fact must be ap-

parent to everybody that the 22,01)0 tons of butter is in existence, and it

has got to go into consumption, and that any increase ill price will simply mean reduced consumption and the carrying over of thousands of tons of butter, and prejudice the position at the opening of next season. It is a very difficult position for tiie. people representing producers of this country to recommend a course of ac-. tion tvhich will mean financial crises! to several of the producers at present; on tire laud. Yet, on tire other band, if these producers cannot survive one season of hard times, it is logical to assume that they will find it more difficult to survive two had seasons. This season's market is going to be a poor one, although we believe some improvement will occur in the near future. It may be as well to point out that there appears very little possibility of tiie purchase scheme being put into operation now, as the cables from' Australia indicate that the producers there are not willing to hold back hall their shipments, and tiie Commonwealth Prime Minister is not favourable to the Government providing finance.”