THE BUTTER POSITION.

Taihape Daily Times, Volume XI, Issue 3507, 19 June 1920, Page 7

THE BUTTER POSITION.

REPLY TO THE PREMIER

HAMILTON, June IG. Referring to the Premier's review of the butter position. Mr Wm. Goodfellow, managing director of the N.Z. Co-op. Dairy Co.. Ltd., informed our representative this morning that he had no intention of criticising- in detail the previous deals made by the , Government en behalf of the NewZealand producers. It would be mis- ; representing the position to say that the deals had been carried through in a satisfactory manner, but it was too :late to remedy the past, and the proI ducers were now concerned only | about the future. ."What the dairy farmers ash," said Mr Gocdfellow, "is that they be paid a price for their produce—both export and local —which will at least approximate its value and cover the cost of I production. The existing two-year butter and cheese contract with the Imperial Government, which would expire on July 31 next, provided for : the payment of 18.1/ i'.o.b. for butter ' (1/7 3-8 d per lb), and lOgd per lb for i cheese. The latter price was relatively higher than butter, although the importations of cheese into England i had increased since 1914, whereas the ! importations of butter had decreased jby about 70 per cent. Partly due to : the war, and partly to the great Australian drought, there existed to-day a ! world shortage of butter, and New j Zealand wa s the only country of con- ! sequence exporting anything like the I normal quantity; in fact, New Zealand I producers were the greatest exportI er s of dairy produce in the world at i the present time. Until recently the British Government had controlled the sale of butter and cheese, but | cheese had now been entirely decon- | trolled. The Imperial Government, j however, still proposed to control imI portations of butter from foreign ; countrie s and the British Dominions, j notwithstanding the fact that the raj tioning system had been discontinued and the producers of Great Britain j and Ireland were marketing their j butter without any restrictions whatever at from 4/ to 5/ per lb, 3/ per lb had been fixed for imported butter, and this, of course, might be reduced I from time to time.

"We appreciate the Prime Minister's action," said Mr Gooodfellow, "in cabling to the High Commissioner in London, but this will require to be followed up very promptly, otherwise the psychological moment may be lost, A PROMISE TO CONSUMERS. Referring to Mr Massey's statement regarding the local butter market, Mr Goodfellcw said he was quite au fait with the position that would exist after August 1. Of the 220.000 boxes now in store, and which had been taken by the New Zealand Government, it mid evidently now been decided to ship 50,000 boxes Home. This would still leave an approximate surplus of 50,000 boxes over and above the normal winter requirements. "If the Government do intend to use Hiis surplus (which was really sold to the Imperial Government) to keep down the price of the new make during the early part of next season," said Mr G-oodfellow, "how do they propose to dispose of the buffer? Will they sell it to the factories in unlimited quantities until the surplus has been cleared? If not, it is quite obvious that this butter will compete with the new season's make during August. September, and October. A more definite statemeiit from the Government on this point would be appreciated, especially in view of the persistent rumours to the effect that at least one section of the community has been told privately that the price of buffer will not be increased without further reference being made to them."