BUTTER AND MEAT.

Taranaki Daily News, 12 October 1916, Page 3

BUTTER AND MEAT.

CONFERENCE OF PRODUCERS, SAYS INCREASE JUSTIFIED. Ey Telegraph.—Press Association. Wellington, Yesterday, Representatives of dairy companies after conference, adopted resolutions expressing their entire disapproval of the proposal of the Board of Trade to levy a tax l on all butter-fat, on the ground that the levy was economically unsound, a class tax, and an interference with small farmers who at present are bearing enormously increased cost of production consequent on the war. A local incfeafee in the price of butter was not only justified but necessary in tlie general interests of the industry owing to the fact that butter for export today was worth Is (i%d to Is 7%d f.0.b., the local equivalent of which, after meeting distributing and marketing charges, was Is 8d per lb. wholesale and Is 10d retail, as compared w#h a charge to consumers in Britain of 2s per lb. If any limitation in price was necessary, the conference suggested the cost should be a charge against the consolidated revenue, a precedent for which was the proceeding by th« Imperial Government with respect to increased wages for railway workers of Great Britain. A committee of cheese and butter representatives, comprising Messrs. A. Morton. W. D. Powdrell, Paeey, J. Marx, and Fisher was set up to watch the interests of producers. BOARD OF TRADE'S REPLY, RECOMMENDATIONS TO THI government;. Wellington, Last Night. The Board of Trade has formulated a reply to the representatives of the dairy industry on the price of butter, which will be forwarded to the Government. The Board recommends that the retail price should not be allowed to rise indefinitely, but should be in the vicinity of Is 7d per lb throughout New Zealand, for the following reasons:—The price in 1915 parison with the previous summer. An increase of 2d per lb 'was ample to compensate for the increased cost of production. If Is 7d was exceeded, difficulties would arise in connection with the domestic milk supply, whieli was not desirable on the grounds of public health. The price fixed in the Commonwealth was Is Gd, and if butter were retailed at Is id the grocers would be satisfied with the present distributing of cargoes. Medical men informed the Board that buttei was an absolute necessity in the homes. A number of children were not receiving the quantity necessary for their • proper physical development. Assuming that the Government were prepared to take action to regulate the price of the local market, the Board recommends the prohibition of export of butter and cheese except under license, and the fixing of the wholesale price from time to time at the factory, the distributing (barges fiot to exceed those ruling 011 August 1, 1'914. Should this scheme be adopted, the Board recommends the removal of all other restrictions on export butter. The scheme iwould be fruitless . if made to apply to butter only, as a 7 threat has been constantly used that the e factories would manufacture ; cheese in 5 place of butter, and butter-fat would be v diverted to the cheese factories. I A 'POOLING SCHEME. • (From Our Own Correspondent). h Wellington, October 1 ! 0. 5 The Minister for Agriculture (Hon. W. D. S. Mac Donald) lias been in consultation with the members of the Board ol Trade with regard to the butter problem. A scheme lias been drafted foi the supply of the New Zealand markets at pj price not higher than that at pre sent ruling, and this scheme has beer IS approved tentatively by Cabinet, bul 0 it has still to be placed before a confer le enec of representatives of producers ani exporters, who will meet in Wellingtoi , r to-day. The basis of the scheme is un ls derstood to be a pooling system, de in signed to equalise the prices as betweei , e the factory supplying the local markc 1( 1 and the factory dealing with the ex porters. I. ; IS MEAT TRUSTS AT WORK. e . The butter problem does not eomplet j4 the difficulties of the Minister for Agri lv culture at the present time. The loca n . meat companies are protesting emphat S3 ieally against the competition of th st American buyers <who are now operatin in New Zealand. These buyers, it i stated, are paying better prices tlia the New Zealand companies can affor to offer under the existing arrangemen as to the acquisition of the meat by th in Imperial authorities at fixed rates, an at it is suggested locally that the Amer. he cans arc in possession of some prior inm formation regarding the intentions of at the British Government, which is genie erally expected to pay improved prices at this year. The Minister discredits th'.s lie suggestion. He himself has not yet rein ceived any definite information from of London on the point, and he presumes [r. that Mr. Massey is now looking into the ;w matter on behalf of the New Zealand n- producers. But there is lid doubt reis' garding the activity of the American buyers, representing the big trusts, he ;