"MAKING BUTTER DEARER."

Taranaki Daily News, 13 July 1918, Page 7

"MAKING BUTTER DEARER."

MR. HARKNESS ANSWERS CRITICS. Mr. Joseph Harkness, secretary of the National Dairy Association, writes to tlie Post in answer to recent criticisms in that journal based on the remarks of the Minister of Agriculture at Hawera in which he criticised the dairy farmers for their recent action in sending delegates to Australia to "fix" the price of butter to t'he Imperial authorities. Mr. Harkness outlines the negotiations relating to the fixing of the price of butter aa follows: "In 1917 tho Imperial Government bought the output of New Zealand butter less the quantity wanted for local consumption, namely 10,000 tons, at Is 4 13-16 of a penny per pound, f.o b. The following proviso was contained in the Sale Contract, that should any profit accrue from the sale of the butter in the United Kingdom, the vendors were to receive 50 per cent of the same. The prices quoted are given at so much per lb, as the general public may more easily grasp the position than by quoting the practice common in the United Kingdom of at per cwt. It has now been ascertained from this sale that about 2d out of the profits will tome to the vendors, making the price Is Gd 13-16 th of a penny per lb. Prior to the Dominion sale the Commonwealth of Australia sold at Is 4d 3-16 th of a penny with the same guarantee as to profits. The Argentine butter was bought at Is (id 3-16 th per lb, f.o.b. It is not known whether this purchase was to participate in the profit. Danish butter was bought at from 2S 6 3-16 d per lb to 3s 7d per lb. . Then the late Lord Rhondda, Food Controller for the United Kingdom, to whom a word of praise is iluo for his extraordinary power in controlling food values, fixed the price of butter in the United Kingdom at 2s 3d per lb wholesale, and 2s 6d retail- Now the bone of contention is the mide margin of difference between ; Is 4 13-lSd and 2s 3d, the price at which it was sold." By the Imperial Government granting in conformity with, the contract the extra 2d, they admit they desired to purchase too cheaply. All tjie producers ask for is that this .Dominion should have a larger proportion of the profits, if butter is maintained at Home at the sams figure; Is that disloyalty? Is that being unpatriotic? The value in the United Kingdom is not fixed iby the producers. It is only, after all, a question of common justice, and if a profit is made of nearly elevenpence per lb, who is best entitled to it—this Dominion or the United Kingdom? Let it .be clearly understood, and heTe your article fails to indicate this point, that, at whatever price the Imperial authorities purchase the I®lß-1® output of butter, the local pTice will remain at Is 5d wholesale, and not exceed la 8d per lb retail. These prices have been fixed by the Board of [Trade

"At least 90 per cent, of the annual wealth of the Dominion is the direct product of the Soil, which is the only fund available for the carrying on of the Government, the raising of war loans, ot-c. Why attempt to limit this total amount so long as values obtained are in accord with prices paid to other countries? Surely what is good in this direction for the individual is beneficial for the community of this Dominion. The total value of dairy produce exported from New Zealand is now in the region of £8,000,000. What advantage would it be, generally, to reduce this 50 per cent., to, say, £4,000,000?

"Ifew, as to the delegation to Australia. At -the request of the Hon. W, T- Massey, Prime Minister, delegates from all butter ajid cheese factories met to negotiate last year's sales. At the Minister's further request, a committee of Ave members from each section was appointed, which had full authority from all delegates to act as they deemed best in the interests of the industry. They have acted, and are now acting, on behalf of the producers, and the Government consult these committees only. The committees have full power to adopt such measures as they deem advisable, and speak officially for all producers, during the last ten years the Commonwealth representatives have personally visited the Dominion and have been in close touch for the above period seeking co-operation in the handling, shipping, nnd marketing of dairy produce. The present time was opportune to further consider the position, and in no way interfered with the Dominion Government's relations with the Commonwealth Government, nor created difficulties in the way of other business transactions. This is one of the phantoms that the Government create when thought advisable. The Sydney conference justified its existence. Finally it was decided to fix the minimum price of butter for the coming season at Is « 8-KM p er n,. A.s proof that this was not an unreasonable position, is confirmed bv present results. Bear in mind, this price was fixed nearly three months before it was known that the Imperial fiovommpnt would rebate any nroifiK Vow /"aland sold at Is 4 13-lod per lb. A further twopence is' to he paid. t.hnt i>—' a total of Is 0; S-lSd per lb. :> - '' l: a coincidence, orj was it the result. ' the deliberations of' men who knew '' '• own business?"