THE BUTTER QUOTA

Rotorua Morning Post, Volume 2, Issue 542, 27 May 1933, Page 7

THE BUTTER QUOTA

POINTS IN FAVOUR TARANAKI FAlRMER DEALS WITH INTRICATE PROBLEM. BRITISH GOOD WILL. Mr. J. F. Ritchie, Bedford IRoad, ■ Inglewood, forwards the following . points in, favour of the butter quota . and against the present unrestricted exportation of butter to Britain from all countries: — We are injuring the goodwill of Britain, our only customer, who suggested the quota as a means of increasing prices to help us and their own dairy farmers. - Our sole market is being glutted, with the result of a disastrous slump-'in prices. It is almost inevitable that restriction will he imposed in two years, when the Ottawa agreements terminate and will he reviewed as a means of assisting British dairy farmers, Prices will continue on a low level as the result of over-production, with' the result that the majority of dairy farmers will he unable to pay their way and they will consequently becoma insolvent. The townspeople will suffer equally as the dairy farmers will have no money to spend, and the whole country will suffer, as the Government will probaibly he unahle to meet her interest p'ayments on loans hoth' at home and in Britain, and may be compelled to default. Australia is increasing production of butter by leaps and bounds and is becoming our most serious competitor, as she exports most of her butter in the summer, when our production is greatest.. New Zealand is well >a.dvaneed" as a dairy p-roducing country and it is prohable that if prices remain on a low level her production will, for the time being, remain stationary or even decline, owing to the rstricted use of fertilisers and to sheepfarmers and graziers, who have turned to dairying owing to th'e slump in beef, mutton, lamb and wool, giving up dairying owing to the unprofitable prices received for butter and going hack to sheep and cattle. . If Australia and New Zealand hold back 6 per cent. of their butter, as suggested by Britain, foreign countries will he compelled to reduce exports to Britain by 12 per cent., and this is bound to make a big reduction of the quantity of butter imported into Britain, with a corresponding increase in price, as the price is naturally governed by supply and demand. If no quota is put on foreign butter^ European supp-lies, which are steadily increasing, will again glut our only market. Britain's Best Customer. Britain will not prohibit importation from these countries, as they are among her best customers for her manufactured goods. As regards our estimated surplus, which is a very doubtful quantity, this should be used to explore new markets. Even if there should be no surplus a certain quantity of butter should be kept off the British market in order to explore new markets, and even if it were sold at less than market value it would he for the good of the dairy industry, which is^ at present suffering through having only one market — Britain. Another way of using our surplus would he a campaign for the use of more fresh milk, fresh butter, cream and cheese, in th'e homes in our towns and cities by advertising and_ informing the public of the very high food values of these commodities. In Britain it has already been noticed that, since the slump, many of the children are growing up weak, sickly, deformed and under-nourished. This is in part due to the fact that many mothers are not receiving sufficient nourishing food and consequently the babies are under-developed and frequently deformed when born, and throujgh suhsequent stemi-starvation they are growing up sickly, deformed and under-developed. Similarly in the towns and cities of this land of ours, which is simply overflowing with milk, cream, butter and cheese, there are thousands to-day who are inadequately supplied with these foods, and consequently many of our own children will grow up weak and sickly, and they will be unahle in later years to carry on the grand work which their grandfathers began as pioneers of this country. Surely a paterpal Government might see that these parents and children receive a sufficient quantity of our nourishing dairy produce to keep them in good health, so that they may he fitted to carry on the good work their grandfathers so ably began and build a great nation in the Southern Hemisph'ere. Finally, it is up to us dairy farmers to demand that a poll be taken at an early date on this, the most irnportant question which has ever arisen in the dairy industry of New Zealand.