THE BUTTER PROBLEM.

Shannon News, 30 December 1921, Page 3

THE BUTTER PROBLEM.

ANOTHER PROPOSAL MADE.

NEW ZEALAND AND AUSTRALIA TO TAKE OVER IMPERIAL STOCKS.

Tfie position of the Home butter market and the dealing with the Imperial stocks in store in order to istabilise the price of'The present New Zealand and Australian make now going forward is ca-using a „ good deal of concern in butter circles in New Zealand. Undoubtedly] the stocks, held by the Imperial authorities, and their announcement a week or two ago of throwing their reserves on the market, has caused a steep decline in the value of the new season’s output, and what may be regarded as a climax has been reached; A cable received a few days ago stated that a proposal was nsade that the dairy companies in New Zealand and Australia be asked to ship only 59 per cent of their output for .the next three gest-ion, and a farther message received on Monday was to the effect that Mr Ellison, the London representative of the National Dairy Association, had‘cabled a suggestion from the Home agents to the same effect, to operate from January 1. This matter was referred to Mr S. A. Broadbelt, chairman of directors of the Levin Dairy Company this morning, and he stated that a suggestion had-now been made that the New Zealand and Australian Governments should take over their respective shares of. the Imperial stocks and dis-pose-of them to best advantage. The question of financing this proposition was a big one, as in the case of the New Zealand butter at Home, its repurchase would run into over £1,900,000. The proposal to reduce the shipments of the present season’s make .would have a serious effect here, as the advances to suppliers would have t<? be reduced as long as portion only ,of the output was being shipped. The suggestions made were to be considered at an important conference of dairy company delegates in Wellington next Thursday, when the practicability of the suggested schemes .would be carefully gone into. . " .

The price suggested at which the stocks would be taken over is said to be 100/ per cw.t'"for New Zealand and 84/ for Australian butter.

A Taranaki man connected with the dairying industry, on Monday received the following cable from his London, agents: “Cheese prices better than butter £56 per ton. Advise butter factories make cheese.” This message is interpreted €s meaning that cheese prices are better than butter by 6d per lb butter-fat.

A leading dairy authority in Hamilton stated this that- the New Zealand Co-operative Dairy Company had for some weeks been advising factories with dual plants to switch over to cheese, for which commodity there were at present better prospects than for butter. Some of the factories had already commenced to make cheese. Further advice was, he said, eagerly awaited from London as to the position of the markets.