THE IMPORTANCE OF SHIP. PING IN DAIRY INDUSTRY

Shannon News, 20 February 1925, Page 1

THE IMPORTANCE OF SHIP. PING IN DAIRY INDUSTRY

"Rusticus’* was greatly interested in the welcome and able criticism of Mr C. H. Courtney concerning the the control and shipping, etc., of New Zealand dairy produce. On a number of points, “Rusticus”, agrees with* this 'writer whole-heartedly, although he may not always be able to come to the same conclusions.

It is certainly a fact that at present, there is a lack of reliable and timely information concerning prices prospects and conditions of the Home market, and the writer of these columns has pointed out this disadvantage oh a number of occasions. At the same time, as Mr Courtney says, it is questionable whether the most up-to-date information would be of much value in a case where the market is heavily oversupplied. But why should ever the market be so heavily over supplied ? The New Zealand dairy industry has had a Control Board for over twelve months, yet the dumping of New Zealand butter, for a given period was greater and took place earlier this season than in any previous year. It is only a repetition to say that the present slump is due to faulty shipping. “Rusticus” cannot agree with the previous writer, that it is impossible for any body of men to arrange satisfactory shipping of dairy produce two months ahead, owing to pioduction being largelv governed by climatic conditi >• rs. although last season can only be eonsulerod as fair to middling, and the present season has every prospect of-, creating a record,there was only a difference of 12J per cent between the two. seasons’ outyyt to the end of December. No Attempt to' Regulate.

As a matter of fact, it >s being frankly adu. itt!d by the members of the Board that no attempt whatsoever was made to regulate shipping, and, that produce, even to-day, is being shipped as fast as it is made, and so are laying thj foundation ..for another slump in March-April. Whether the Board was right or wrong in giving so little attention to shipping, remains for the producers to judge. So much is certain, that no member of the Board can plead ignorance as to probable consequences of faulty shipping, as the present depression is simply a repetition of what has happened for years, and- as it was this very weakness in our system of-marketing, that lead to ike creation of the Board. Rumour has it that the omission to regulate shipping was due to the 'Overseas Delegation, but whoever may be responsible, will by now recognise- -the seriousness and the costliness of the delay. Regular Shipping the Remedy.

"Rusticus” is convinced that not only the whole of-the present trouble is due to shipping, but,, also that a complete’ and effective remedy is to be found in the control of shipping and not—as many appear to imagine—in the control of market prices. Denmark places, with very little variation 2000 tons of butter on the English market every week. Until New Zealand is in a position to market say 1500 tons in a similar way the producers will not receive the full value for their produce, for the simple reason that only part of the New Zealand supply goes into consumption and the other part passes into the hands of speculative holders. In order to bring about such a regularity of supply, an efficient shipping service is essential, with up-to-date storage accommodation in New Zealand, for the bulk of supply must be held in this country. Like many others, Mr Courtney appears to think-that in order to'regulate shipping and so ensure a' regular supply “control absolute" is essential "Rusticus” has pointed out on several occasions that the Board even to-day has the fullest powers of regulating the export of butter and • cheese if they chose to use them. There may, of course, be good and substantial rea-: sons for not having done soV May be the stortage accommodation in New Zealand is not sufficient; or maybe the terms of the shipping contract may not allow it; but whatever the reason, absolute control would only aggravate the position. Fallacy of Absolute Control. “Rusticus” has, of course, beenhighly interested in the controversy which has been going on of late with regard to absolute control, but was really never taken it seriously. There may still be producers who think that a Control Board can regulate the markets and prices of butter and cheese, but it is doubtful as to whether any member of the Board labours under such a delusion. By controlling shipping and equalising supplies the Board may prevent a glut and depression and by preventing glut and depression it will gradually weed out the speculative element. This can be brought about without

unnecessary risks or revolutionary changes and when accomplished will be of inestimable- value to the producers. Control must take place at this end, and must be in the nature of regulating the quantities to be shipped from time to time, for no control is possible once dairy produce passes out of first hand. The writer feels certain that the members of the Board, and particularly the members of the Overseas Delegation fully realise the responsibility of such a posi-

tion and he very much doubts, as to whether the question of "Control Absolute" was aver seriously mentioned or discussed at last week's meeting of the Board. "Export by license” is a powerful weapon in the hands of the Board, enabling It to effectively regulate the shipping of dairy produce, and the Board is receiving a certain amount of blame for not making use of it before this. “Absolute Control” is a matter entirely apart and may be seriously con-, sidered in five or ten years time. 8o important and far-reaching are Its effects that, under no circumstances,, should it be instituted without a definite mandate from the producers.