DAIRYING INDUSTRY.

Taranaki Daily News, 18 May 1917, Page 8

DAIRYING INDUSTRY.

j CONGESTION OF STOCKS. POSITION MOST SERIOUS. The position of the butter and cheese industry, due to the shortage of shipping causing congestion in tin* cool stores, was the subject of an interview at Auckland on Saturday With Mr,' 11. K. Paeev, managing director of■ the New Zealand Dairy Associations. With rofer.nco to the shortage of shipping' space, lie said Ihe. position was extraorr'in\rily serious. At present there was in the pri.vince more than £700,000 worihof lutter and chco?e, and there was 110 icnain'.y ivhen the arrears would he overtaken The accumulation of butter tvas greater l|i.in that of cheese. The fact of the Ci'ivdrnment having purchased cheese had caused it to be- given preference in shipping. In reply to a qiu.-.ticr, Mr. Paejy said he had been in communication by 'cablegram with Mr. Mas say in regard to the shortage of shipping, and.h" believed the Prime Minister was exerting e«'cry influence to secure some iclief by sending more ships here. In reply to a specific inquiry, Mr. Massey svd he had reason to expect that the accumulations would be cleared before the ne.:t dairying season opened. So far, however, said Mr. Pacey, there had been no indication of a relaxation of.the. position, and all responsible people engaged in the industry had reason for anxiety.

"There is much to be said," stated Mr. Pacey, "in favor of thp suggestion that the storage capacity of the ports should be further increased as a means of meeting the crisis which' is pending." In reply to an inquiry, Mr. Pacey said:— .'•'.There is not any ..present expectation of manufacturers being compelled to discontinue the making of (ither butter or cheese. The position is undoubtedly grave, but I believe organisation and effort will avoid such an extreme measure."

Mr. Pacey, in reply to a further question regarding the financial outlook, said some of the small companies were undoubtedly embarassed, while all were feeling the strain to a greater or a lesser degree. At present he did not considei the occasion required Government aid. In the meantime, the question of the rate to he paid out for monthly supplies was engaging attention and there was a dieposition t;o pay out proportionately less than would have been considered justifiable under conditions which prevailed eve-]) during the early period of the war. This specially applied to butter. "Fear has been expresed." continued Mr. Pacey, "that some of the advances already made have been too high, and will involve refunds by the suppliers. I think, however, that the position will he met without such recourse. This, of course, assumes a clearance on the! lines indicated in Mr. Massey's cablegram. At present I am hopeful, but anxious.. In my opinion there is no probability of the freezing works not 'being able to handle this season's output of butler and cheese, as Hhe end of the season is at. hand. The anxiety is for ne.vt season's output." Questioned as to the effect on the local market of the congestion of stocks, Mr. Pacey said that as Now Zealand pries were many pence per pound below the Home values, ho considered it unlikely that local prices would be affected for the time being, .