EXPORTERS ADVANCES ON BUTTER AND CHEESE.

Shannon News, 5 December 1924, Page 4

EXPORTERS ADVANCES ON BUTTER AND CHEESE.

A SEVERE CUT., . The New Zealand Dairy Produce Exporters • Association, London, have expressed their intention of. recommending. the, rates. i. of, advances for. butter and, cheese.,to be ,m,a.de to New Zealand ; ,factories ' from month t .to month. Although not comprising all exporters of New butter, ,anu cheese, the sists of most of the large Tooley Street Houses and was formed prior to ‘the passing of the Dairy Produce Export Control Act. The idea of fixing a uniform rate of advances .from month to month, is no doubt a good, one, as, it .will tend to do away, with .certain competitive methods, both, among the Exporters and producers, .which in the part have not always proved to be in, the best interest of’ the 4 industry! ‘There is, of course, the possibility that concerted action among the exporters will enable them to reduce the rates of advances to a point where they may prove a .hardship to .the. factories and ..their, suppliers. .It is well known in certain circles, that one or two Tooley Street. Hpuses have strongly : expressed the., opinion on more than one occasion that where dairy companies on arrival , of steamers are not prepared to meet the market but . decide to hold their produce for a rise, such companies should not lean on the exporters, but should do their own financing.

An Established Custom. Prior to the last year or two, very little butter or cheese was ever held in London by New Zealand producers, j It was an : accepted rule...that every,! shipment was to be cleaned up .on ! arrival —sometimes before five of markets and. .prices. Whether 1 such a method was or not, in* the best interest of the producers is a question on whicli experts - differ. While there ' may have been wisdom in this system of disposing of our produce during times when markets were stable and .prices, steady, it is at least doubtful whether this was so during-a period of depression and speculation. Nevertheless, this method had become the ' accepted usage and custom, and, like and other custom.became difficult to break away from. ' It must be acknowledged in fairness to the exporters, that’the dairy produce held by New Zealand Dair;

Companies during., , certain periods ■of last year, ran into millions.Of.pounds sterling, and . although there, was. no , serious risk" involved,' or actual loss incurred, the enormous advances made by the exporters'must have greatly taxed their financial resourcea Severe Cut In Advances. The advances recommended by the ..Exporter’s . Association for, December. shipment,consist ..of 1/2 for butter .and 6id- for,cheese. These figures re- , present approxinjatelyM6o/-,for butter and 77/6;for cheese .oh, the Lqridori ' market •• anc(. can ~certainly not 4 be regarded as extravagant or munificent considering to-day’s ‘ London prices are 210/- and 90/- for butter and cheese respectively. It need 1 hardly be assumed that Tooley Street anticipates such- a sen- . sational drop.. in. dairy, produce-r-par- , ticularly. in butter-rnas , might; be ip-. . ferr.ejl from.these figures. ,1$ iri .much more likely that . exporters; are,forearming against' another. hold-up by New j Zealand ' factofiea The'present is the second severe’ cut iri advances' for this season, and that it Carrie even as a surprise to the . New Zealand representatives of Tooley Street houses is shown by the., fact that a cable was sent London suggesting 1/3. .and 7d. Reply-was received, however, that, “in view. >of large, supplies from all sources the suggested Advances, based on approximate.. prices on arrival, were ample.” . As’ a result of these drastic reductions', payments made by butter and cheese factories will show a considerable'falling off next month. It is only to. be hoped that the anticipated drop, which is looked-upon as a. certainty early in the new year, will not prove as severe as is apparently feared in certain quarters. . , ,