BUTTER AND CHEESE.

Pukekohe & Waiuku Times, Volume 7, Issue 434, 13 December 1918, Page 1

BUTTER AND CHEESE.

THE IMPERIAL PURCHASE BUTTER MEN DISSATISFIED. DISSENT TO TWO YEARS' CONTRACT. A meeting of representatives of dairy factories was held at the Waikato Winter' Show Buildings, at Hamilton, on Thursday of last week, the following companies being repre sentedThames Valley Dairy Co., NZ. Dairy Association, Waikato Cheese Co., Waihou Valley Dairy Co., Cambridge Dairy Co., Norfolk Dairy Co, Horsham Downs Dairy Co., Waikato Dairy Co., Tatua Dairy Co., Bruntwood Dairy Co., Rotorua Dairy Co., Richmond Downs Dairy Co., Kaipara Dairy Co. Mr Buchanan (Thames Valley Dairy Co.) presided, and explained fully the position regarding vthe sale of butter and cheese to the Imperial Government. He stated that he had recorded his objection to the action of the butter and cheese committees in contracting for the sale to the Imperial Government of the 1919-20 season's butter and cheese.

Mr Goodfellow (a member of the Dominion Batter Committee), at the chairman's request, outlined the ateps leading up to the purchase of the present season's butter. He stated that the first meeting of Dominion delegates was held in Wellington as far back as last April. At that, meeting a committee of five were elected to dispose of the butter to the Imperial Government. The resolution appointing them was as follows"That the following committee be appointed to deal with the whole butter business, with full power to act for 1918-19—Messrs Pacey, Goodfellow, Morton, MoFarlane, and Agar." As the Imperial authorities employed the best brains in England to look after the Imperial dairy purchases, it was considered unwise to leave the producers' interests solely in the hands of the Premier, who was an exceedingly busy man. It was, therefore, suggested to Mr Massev before he left for England that Mr Ellison (manager of the National Dairy Association in London) be officially recognised as the representative of the Dominion dairy producers in London, with the object of assisting him in connection with the disposal of butter and cheese to the Imperial authorities However, Mr Massey had failed to arrange for the appointment of Mr Ellison, and it was not until after the Premier had returned to New Zealand, and further, until after the deal had been made with Australia, that Mr Ellison's position was established. The whole conduct of the business in connection with the sale had been most unbusinesslike and unsatisfactory from the producers' point of view. Had Mr Massey arranged for Mr Ellison's appointment during his visit to England, as arranged, there was no doubt that the sale with the Imperial Government would have been completed months ago. The Dominion committees had asked the Imperial Government for lOfd. for cheese, and 1965. for butter, which were low prices compared with those obtained by Canada. The price of IOJd. for cheese was accepted, but 18ls, for butter was the best offer obtainable. Further, this offer contained a clause that the two purchases must be combined, and dependent one upon the other. A meeting was recently called in Wellington to consider the Imperial Government's offer, but the representatives were given such short notice that even though they had not been stricken with influenza or hampered by disorganisation of communication arrangements, it was impossible for all to reach Wellington in time for the meeting—a most extraordinary procedure. As a result, only Mr Morton, of Taranaki (chairman of the Butter Committee) was in attendance; while the Cheese Committee (mostly from Taranaki also) was well represented. The •beese men were naturally well satisfied with the price offered by the Tmt>erial Government, seeing that IOJd was the price thev had asked for and was even more than they wer» prepared to accept. On behalf of the Butter Committee, Mr Morton agreed to sell for two years at 181s , but the question arises, could he legally do so ? The speaker maintained that Mr Morton had no legal right to enter into such a contract. He had offered butter and cheese for two years without the authority of his committee, although at the previous meeting it was unanimously dmdod that the Butter Committee should hold out for 1965. Owing to th» delay in the negotiations, due entirely to the Government, a number of small factories throughout the Dominion were in a temporary financial tangle, and it was almost entirely due to this fact that a number of producers' representatives considered it imperative to sell to the Imperial Government at 181s. for this season only. The speaker was firmly of opinion that a much better price would be obtained the following rear by the companies exporting butt«r to London on their own account. The shipping position had improved to such an extent that there was little likelihood of any difficulty in obtaining freight space.

Mr Pacey agreed that the butter price would be better in the open market next year, and that now was the best time to make a satisfactory deal for the future. Mr Morton had acted upon the advice of the majority at the conference. It was proposed by Mr laedale (Rotorua Co.-op.), seconded by Mr Goodfellow (Waikato Co-op.) that " The Prime Minister and the secretary of the New Zealand Butter Committee be immediately notified that this representative meeting of butfer producers will not agree to sell their butter to the Imperial Government for more than one year at 181s." The amendment to the effect that a protest should be made against the inclusion of the 1919-20 season's butter, and request the Butter Committee to endeavour to have this released from the contract, was lost on the votes. It was unanimously decided to confirm the action of the Cheese Committee in agreeing to the sale of the 1919-20 cheese at 10£ d. The meeting closed with a vote of thanks to the chairman.