The Daily News. MONDAY, JULY 10, 1905. DEVELOPMENT OF THE BUTTER TRADE.

Taranaki Daily News, Volume XLVII, Issue 7868, 10 July 1905, Page 2

The Daily News. MONDAY, JULY 10, 1905. DEVELOPMENT OF THE BUTTER TRADE.

Some few weeks ago we had occasiof* lo Cjinmenl <m the progressfio action of the National Daily Assotia-

torn in cancel ling the existing contract with 't-he .shipping companies relating to thu freight on dairy pm- * duce. and in entering! »nto n new agreement on more favourable terms. It was then pointed oat that the gain to accrue t:i producers by the new tariff was- estimated at £25,000 for the lirst two years, and an additional £IO.OOO for tho subsequent three years, but from t'iis sum there must be deducted the live per cent rebate which under the superseded cuntract would haw been made each vcar on Ihe nett weight of butter in London—;in important concession th.il does not exist in the revised contract. It moil be bonie in mind, howcvc", that this contract only applies to shipments to London alone by the New Zealand anil Shaw i*av II Shipping Companies, and Vial thctx' is at ps>+ent no arrangement as lo freights for / to the West (.'oast imrta nf tho United Kingdom, namely. Cardiff. Bristol, Liverpool. Glasgow, etc., which an; now supplied with our butler from ths London market, the extra, charge for railage incurred being about £2 jiet ton. When reply ng to a deputation of South Island dairymen, 'the Premier advised thnn not to sunt any contract because it was highly probnblo arrangements would shortlv be completed for n steam set vice to the western ports* erf Great llritujn.. 'jThe importance of such a course is not sufficiently realised by those concerned in the industry, yet year by year our butler trade with the Weft Coast and Midland towns of England has grown until iUs estimated by a com|>clent authority that at tho present time from one-half to two-thirds of our butter is absorbed in that direction. To give, some conception of what this means, it may he staled that the ,-, mount of butter extKirted last year was 15.81V2 tons, of which 7450 tons (or neatly one-half) were produced in Taranaki, the South Island accounting for only 201i(5 tons. It will be seen, therefore, that though •>ur Southern producers made a considerable stir over thu ijueslioii ». freight. their interest is dy no means large, yet, possibly, that is their reason lor tryiinj lo do th* best in their power in the direction oi saving expenses and increasing profit s. This naturally rmpliasises the import ami; for tin- Northern 1 produces tc) be vimullj keen in looking ati'i' their own interests, mH, apparently, these will best be served by obtaining favourable freights to the West Coast ports mentioned above. The N'ew Zealand and African Shipping Company, whose eubsidy j'riini the Government expires ihH year. are. we understand, prepared lo fao'lituto nialtters in this direction, and, provided sufficient inducement is offered, they sir/i willing to deliver butter to the West Coast ports ol" Oi'eul Hrjluin in the same number of (Ins ax the Shaw Suvill and New- Zealand Shipping Companies now take to deliver produce iiimi Wellington to London, at) a chutxv of £"> 10s per ton, or liveeighths of si [K'liny per pound. Of Course, lib', noiild mean thai L-ti-i-esseis employed iu this trade «ould nol lourh u t Australian or South African £orts. which would necessarily prolong the voyage, mor hast the experience of (he past been such as to induce g continuance i>i that route. This rnny mean that the Government subsidy will be withdrawn but in the face of tho Premier's pronouueement all IMinedin thero are grounds for assuming that the Government is prepared to assist in the ' matter. IVe understand that at Ihis initial ttage no mention;, bus irouu (

made as to whether thtii rate of freight would Include coagial freight in the c iloiiy (as is the case wrih Khi|)»,iv,is to London), or whether they ..iv prepared to give u I'orlnigli:!' service instead of a monthly SDl'.vit.' .s a I present. The „,„)„ ,111', licuit; 'oi their, or ~ny other snipping r.j.i;|ian.i, making a dciiiiiu- offer is I la.; ihey r'-a,- a-,y otter made'may Jbe us : against iliein to inOuoc thu ISluiv. .-.mill and New Zealand Sliipjpin,' I'ompanies to reduce the r j fiiit li . and consequently witli the c.vLvpuei of bringing tales down th» coiii;n :iy making .such mi offer would nt !•• i ticipatp in the carriage 'of builei. ll is staled on good authority thud i.i- spile of ihe «xlra £2 l» im: incurred in railage to lli-islol |l.iie. tool, Glasgow. a!/.l the wirli'nii! dins tlistr cts. merchants eslab-

lisiid in those ecnti\s who have handli'.'l consitmiH nts of colonial i-r >:ha'e have been able to return equal, if not superior, price* to those of their, London competitors, si that it woi:M seem that direct shipment would, at similar freights, be a g'U'n to tit producers of £2 6s 8d a ton. ireor. sc:<ting e. money value to this colo ,y of £15,01)0 to £20,000 „ year ov't- and above the £2o,tHK> gained by the reduction in lli« freight under the new contract made by the National Dairy Association. K may here be mentioned that, in -thin contract is a cluusc to the effect that in the event of a resnoiisilile shipping company'offering to carry butter at a reduced rater of freight under similar conditions the National IMiry Association is at liberty to take advantage of such offer, so that although the present supply for the London market would still bo carried by the two companies who aro parties to the agreement, there Is nothing to interfere with inn ,agre<>ment being entered into with the New- Zealand and African Shipping (Jompnny ot the ln« indicated. To do Ibis, however, there, must lie offered n •rvninmni supply of sntlirient extent in justify n contract. As the factn s'nnd at present there should lie no dilTeulty on this head, but unless the suppliers tako up tho matter in a ken, business-like way. n 0 good will e'.sue. 'lliat the question is worthy oi ;;te best consideration seems iutiis,iutahlc. and those concernod should

lose no time in discussing the pro■••cL I nder the existing epeumsi.'.nccs it does not seem as if competitive shipping companies woulu l. re lo do more than indicate thai iney are willing to receive offers, but ,! a meeting were arranged between ■ i.Ctories and merchant!) interested by . emg in a poshitm 1 to put something ■infinite in the shape of an olfec-foelore t'.ese companies, no harm could be one, and it might result in a dir-ict :,irtnightiy servic to the West Coast ports of the I'nited Kingdom at a reduction in freight of £2 IK 8d per ■it, and a saving in railage of about £2 u ton, all of whirii would o into the farmers' pockets. We . unmctid i lie run tin- l<i their elmiest a Ontlon, merely adding that as the ■i'St:ou is one whicn materially Citterns their [irosperity. we fell Sjoiiikl -.1 endeavour lo ai'mse t'r ir interest u a d reclion which se».iiii"|rly leads (i an Increased return for their capiul and labour.