DISPOSAL OF BUTTER

Southland Times, Issue 18860, 28 June 1920, Page 5

DISPOSAL OF BUTTER

SALE TO CO-OPERATIVE SOCIETIES. CO-OPERATIVE DISTRIBUTION. CONCERN IN TOOLEY STREET. (3y Telegraph, —Press Assn.—Copyright.) (Australian and N.Z. Cable Association.' LONDON, June 25. The decision of the New Zealand farmers to distribute butter and cheese through the British Wholesale Co-operative Society has disagreeably shocked Tooley Street, which admits that the decision seriously affects them. The agents declare that it is a poor reward for their years of devotion in popularising New Zealand dairy produce. However, it was not altogether unexpected. The agents add that New Zealand’s Socialistic trend predisposed farmers to accept the offer of the supposedly Socialistic British organisation but the agents declare that the farmers will find co-operative distribution very different from Government control and not a substitute therefore. It is a basic principle of a co-operative society to buy in the cheapest possible market an enable its own shops to compete with private retailers. This in the long run is bound to conflict with the farmers’ object of getting the best price. The step means that the fanner is placing himself in the hands of one buyer controlling only one-tenth of the total trade of the country. It also means that New Zealand butter will lose its old markets, as the Co-opera-tive Society at present largely sells Danish. Private retailers will refuse to sell New Zealand butter owing to the antagonism of (he Co-operative Society and they will be able to get more Danish and sell it in competition with New Zealand. The agents, however, do not contemplate coun-ter-action. They say that the New Zealand farmer is free to sell as he choses. They are confident that experience will show the wisdom of selling to private traders. Some agents point out that the Ministerial replies in the cables o'f June 10 and 21 indicate that there is no immediate danger. They believe that a new situation may arise beiore Inc trade is cie-control-led. The Australian delegates have concluded a butter contract of 2-lOs f.o.b. on similar conditions to the existing contract. THE AUSTRALIAN SALE. TERMS OF THE CONTRACT. LONDON, June 20. (Received June 27, 5.5 p.m.l The delegates have completed a contract with the Food Ministry for the purchase of Australian surplus butter on the following terms-Price, 210/- per cwt, f.0.b., for butter grading 90 points, with 1/- per cwt more for each point from 91 to 95 inclusive, and 1/- j>er cwt less for each |X>int under 90; an extra per cwt for unsaltcd, which shall not exceed 25 per cent, of the whole. The Ministry will pay tgorage. The Australian committee retains tne right to supply South Africa with butter provided it does not exceed fifty tons a month. The period of the contract, is September 1 to March 31, and the contract is to include butter delivered in cool stores in Australia till March 31. INTERESTING NEWS TO DOMINION FARMERS. (Per United Press Association.) WELLINGTON, June 27, The sale of Australian butter at 240s per cwt. f.0.b., as reported by cable, must be interesting news to the New Zea.la.nd butter producers. Some few days ago the produces in conference agreed to sell their output to representatives of the British co-operative societies. It was then assumed that there wtvs some chance of securing a free market, although all official advice was to the contrary, but if the Australians have been aide to secure such a good price as 240s under requisition terms, a sale of New Zealand butter ro the British Government on similar terms would almost certainly he more attractive business to tHe producers than a free sale to the co-operative societies, especially as it is understood that the price ottered was not in excc.-s of 2405. In any case this is practically certain, that the New Zealand owners of butter will have to sell to the British Government but whereas a frw days ago they were unwilling to do so. such a price as the Australians have obtained may tempt them. If such a sale should be made it would 'involve an increase in the price of butter locally to about 3s 3<l per 11;.