THE CHEESE POSITION.

Taranaki Daily News, 9 November 1917, Page 7

THE CHEESE POSITION.

MR. S. TURNER'S SUGGESTIONS.

Mr S. Turner (J. J. Lonsdale and C 0.,) writes:—l would like to make a few suggestions to the cheese industry and those who are negotiating a sale with the Imperial authorities in order that the business might work smoothly during the period of the war It is now widely known that the Imperial authorities have freed the price to the British public, through the usual channels, for Is 4d per lb for cheese from Canada, Australia, New Zealand and the United States. The retailer buys this cheese at Is 2d per lb from the wholesaler. The wholesaler invoices the cheese on ths Government forms and receives 5 per cent if he sells the cheese in three crate lots. Where the wholesaler is an importer and sells the cheese in more than three crate lots he only receives 2'/ 3 per cent instead of 5 per cent., and pays the Government within seven days and receives an allowance of 3>/ 2 per cent for shrinkage. The importer receives his proportion on a footing in proportion to his imports which he imported in 191<!. All charges come off the retail public.price of l s 4d per lb and the New Zealand farmers should get this price, less all the charges from the factory to the consumer. My suggestion is that the Imperial authorities confer with the New Zealand Government before they lower the price of New Zeiland cheeße, and once the price is agreed to by the British public then, full particulars of the whole of the charges, as between the cheese factory in New Zealand and the British public, should be shown to the cheese producer, and he should get the difference. As an illustration, I would like to say that assuming that the price has been fixed it !>y 3 d per lb, less 3% per cent shrinkage and other minor details, all of which cost a little money to the Imperial authorities, these charges in New Zealand, together with freight, insurance, war risk, landing charges, air-craft, and distribution, should come off the price of h '4d per lb. All these charges are more or less stationary. The only detail which is not stationary is shrinkage, and on this point factories might lose money if the Imperial authorities wanted' to charge them shrinkage according to last year, because last year New Zealand had very insufficient cold storage, while this year they have got very good faeili-, ties to keep the temperature at a certain degree, which will save a large amount of shrinkage.' Of course the shrinkage to the British public in these congested times here and in England.-™ heavy, 'and New Zealand factories should be compelled t6 build any further cold storage necessary, providing the New Zealand Government subsidies them to a, reasonable amount.

Last year's shrinkage came to about 6 or 7 per cent, before it reached the British public. It would not he too much to ask the Imperial authorities to keep the cheese in cold storage, and the Government to help to have cold stores built in New Zealand so as to save a big amount of shrinkage, and then even 2'/ 2 per cent, would cover the loss instead of last year's <5 per cent, and the factories would receive the difference after the question was settled at the end of the season. The factories would also receive the difference in price if there were any, and it is not too much to ask the imperial authorities to hand over the cheese to importers in England, free of cost, of handling it, to New Zealand on the grounds that New Zealand cheese is limited in price in England. If these suggestions were given effect to it would meaen that a sample account sale, showin? the cheese sold at Is 4d per lb to the British public and all charges back to the factory deducted, could be published by the New Zealand Government in the leading papers in New Zealand. If once the factories were satisfied that nobody was getting undue profit or that there was no middleman exploitations, I am sure it would work smoothly from year to year while the war lasts. s

It will "be noticed that in the Imperial authorities arrangements in England that they are using the trade's capital to finance the retail grocers in the distribution of the cheese. I would be pleased to give particulars of this unique system of distribution a3 arranged by the Imperial authorities. I have already supplied these to the New Zealand Board of Trade, and I hope that that section will get control of the whole of the butter and cheese going to England, so that they will be in touch with the Board of Trade in England and so fix up these matters. I understand that the Imperial authorities have taken over the butter from the 3rd September last on a fixed price to the public, and if, the same system is used for New Zealand butter, as I suggest for the cheese, I feel certain that it will give entire satisfaction to all butter producers in New Zealand, providing, of course, that the New Zealand Government had a voice p the prices to the public of Great Britain. One hears complaints from every source about the high cost of living, and certain sections have asked the Goveernment to reduce the cost of living. Why "♦. start by reducing the price of coal ' rrom the Government mines ?