THE DAIRY INDUSTRY.

Taranaki Daily News, Volume LI, Issue 97, 13 April 1908, Page 2

THE DAIRY INDUSTRY.

CIIAItCKS AUAINST XKW ZEAL IXJJ houses. KAILUtK T(l R'LKIL, COXTIiACTS. Per Press Association. Auckland, Last Xight. Hit' Now Zealand Product' Connnis--ioner at Home (Mr. iJ. (.. Cameron), together with I lie Chief JJairv Commissioner (.Mr. D. Cuddie), Jiavi- 'lit-cn makUit rounds of the butter houses at Ilium', ami as a result .Mr, Cameron tabled to the l'rinie Minister, and followed up the cable with.a letter which made some rather startling allegations against those concerned ill the industry at this Olid. These statements were referred by a Herald representative yesterday to a number of tirms engaged in buying factory outputs on contact. One prominent buyer said there were undoubtedly shortages on contracts made with Home firms, lmt equally so 1 here were groat shortages on contracts mad*.' by factories wftli buvers here, lie produced a list to show the shortage in tile ease of each factory lie had contracted with, revealing an average deficiency of 20 per cent, over all the contracts. Asked to what ho attributed

the shortages, he replied that tile butter business was really a gamble 011 the weather. The phenomenally good seasou in l!ll)(i-7 hail resulted in big outputs, mid tor the contracts for 1907-8 the factories were rather inclined to estimate the outputs 011 the basis of the previous season.

Another gentleman closely concerned in the trade said that unfortunately in some parts of Xew Zealand the charges made by Mr. Cameron were "a true bill." Some aerators 011 the market bad adopted the ''swinging over" dodge. They had bought outputs up to the end of March, and had closed contracts with Home linns at prices ranging from 10% d to lO'/jd, and then prices went up in the Dominion to such amounts as 13'/ 3 d and 14d, and the operators lessened their exports and sold butter in Xew Zealand at these prices, taking the chances of meeting the claims of Home purchasers for shortage 011 contracts. The Home firms would claim for the shortages on contracts at the dill'erence between tin; price the contract stipulated they should pay and what the produce was worth 011 the Home market. This would work out at from '/ 3 dto P/al per lb, | so that the operators reaped the balance of difference between this and the prices realised ill Xew Zealand. Whatever had been done in that line had been dune within the Dominion, and there hail been 110 shipping past the Homo firms. (If course, it was a ijuestionablo practice and would do harm to the industry. Undoubtedly there was a shortage, owing to tlie dry period, but the shortage on Home contracts was greater than the shortage 011 actual 1 factory outputs. The dry season had caused the whole thing, it having resulted in short supplies and high prices on the local markets, and hence the temptation to "swing over." [Mr. Cameron's report is published 011 page four.]