The Sun 42 Wyndham Street, Auckland, N.Z. FRIDAY, JUNE 17, 1927. BUTTER-FAT IN THE FIRE

Sun (Auckland), Volume 1, Issue 73, 17 June 1927, Page 8

The Sun 42 Wyndham Street, Auckland, N.Z. FRIDAY, JUNE 17, 1927. BUTTER-FAT IN THE FIRE

IT is announced officially that the policy of the Dairy Produce Export Control Board is in the melting pot-. This means in plainer words that when the pot boils over butter-fat will be in the fire of commercial speculation. After a brief and an inglorious effort at obtaining the best possible prices for New Zealand butter and cheese, the producers have been delivered back into the hands of the Philistines. Tooley Street merchants have gained a complete triumph. Our dairymen are now asked by influential friends to rejoice and praise them with jubilant gratitude for having done so much through propaganda and other forms of persuasion, some of which had to be harsh in order to be kind, to restore a free market and regain the goodwill of oversea merchants. It may be assumed, however, that many producers who put their faith in politics, will see in the board’s complete surrender to the big powers in the dairy procluce trade much more cause for tears than for joyous laughter. They will recognise at least that the goodwill of Tooley Street must be paid for at fairly stiff rates, unless the old adage about the leopard and the Ethiopian has lost its application. Time and circumstances quickly have justified the recent blunt assertion in this journal by Mr. W. Goodfellow, a member of the board, following on his investigation of trade conditions in England, that control was wrecked. Sonte commentators on that occasion, as well as several of his colleagues, expressed the opinion that his statements about the position were exaggerated, harsh and over-pessimistic. Yesterday, the board completed the wreck of its control policy. The prospect of salvage is unknown. That, depends on the goodwill of the merchants. It has been decided to make an end to absolute control by terminating as soon as possible the pooling of creamery butter and cheese. From the last day of next month individual factories, it is understood, will have complete freedom to sell their product. The board itself will become a glorified clerical department attending with admirable efficiency to bills of lading, arrangements for insurance and other minor services. What is likely to come out of the melting pot? If the board is to be of any vital use at all, it will have to evolve a constructive policy of service. Failing such service the board might as well wreck itself and disappear into the mists as another faithful failure. There was some talk yesterday of maintaining a modified form of control, limited to making arrangements for shipping, cold storage, , book-keeping and advertising. Is it necessary to employ nine advisory experts as members of the board to perform that sort of work? Meanwhile, it is reported that the board’s decision to abolish price-fixation and pooling has given satisfaction to local exporters and representatives of oversea merchants. They have reaSon to be happy. As Mr. Goo'dfellow observed recently “admittedly a small group of New Zealand exporters will hereafter benefit very considerably financially.”