THE BUTTER PURCHASE.

Taranaki Daily News, 12 August 1918, Page 2

THE BUTTER PURCHASE.

AND THE AUSTRALIAN DELEGATION. I Speaking at the annual meeting of the Mangorei Dairy Company at Egmont Village on Friday, Mr. Arthur Morton, chairman of directors, also president ot the National Dairy Association, referred at some length to the sale of butter to the Imperial Government last season. That -was the first time in the history of tho industry that the Imperial, Government had purchased, the whole of tho butter of New Zealand, though they had in previous seasons purchased either tho whole or a portion of the output of cheese. It was not until January last that the sale was actually completed, the price -being 157s f.0.b., also an additional 50 per cent, of the profits on tho sale of that butter at home. The New Zealand producer was to pay all storage charges up to three months, bear all risks of insurance and of tho butter deteriorating in quality. The charges in respect to storage and insurance were heavy and so tho 157s was very much reduced. When the deal was made those acting for tho New Zealand producer asked for at least 80 per cent of the profits, as they could see no good reason why the Imperial Government should ibave any of tho profits. The Imperial Government was not buying for themselves or for army purposes, but so that they could have control of tho produce on the London market and sell at a fixed price to the wholesaler, the distributor and the consumer, and those fixed prices would allow a considerable margin and all they could get, however, was GO per cent. Up to a short time ago no notification had- 'been received from the Imperial Government as to what their share of the profit was likely to be, though they had received word from their own agent over two months ago. In view of the fact that Australia hoi sold to tho Imperial Government at 191s, a straight-out sale with no arrangements regarding half profits, and because tho Imperial Government had offered to give Australia 19s out of the profit, tfoey were of opinion that New Zealand would get at least IBs also. There was no doubt that the sale by Australia at 151s considerably prejudiced the chances of obtaining a higher price. They were found by that sale and were able to obtain a little more, 1575. j Bearing that iri mind the butter pro- I duccrs of New Zealand sent a delegation.! to meet tho Australian producer ami discuss the question of the previous sea-' son's sale, get their ideas, and also eonsuit them regarding the next season's: sale, because it was looked upon a* certain that as long as tho war lasted the Imperial Government -would purchase the produce and it was recognised that if there was to he any advantage in working with Australia the only way was to get in touch with Australia and find out their ideas. Tho delegation found that the Australians were to a. certain extent satisfied with the deal. They were almost panicky regarding shipping, and when they had the assurance that their butter would be shipped, that explained tho sale at the low figure of 151s. After some two days' discussion tho Australia, Federal Butter Committee, a hody with recognised authority, passed a resolution fixing the minimum at 1755. The delegation on its return to New Zealand put the position before the butter factories of New Zealand, who left entirely in the committeo's hands tho fixing of the price and other arrangements. Since then tho butter committee, acting on behalf of tho producers, had asked a higher price. It must ho borne in mind that the price had been fixed on the London market and that price netted is 9d. The butter committee acted in the belief that they were entitled to all that was in it, and decided to ask 19Gs or Is 9d per ib. To show that the 175s asked by. Australia was a reasonable price they had only to compare it with tho prico at which New Zealand had sold, viz., 1575, and add the 10s Australia's share of the profits. He would not say that the New Zealand probers' share of profits would be 10s; it might possibly be Is or 2s less; but they would endeavor to get 19s, which would bring the price they received to Is more tftui Australia, was asking. Statements had been made, and had been circulated by the press throughout New Zealand, protesting against the action of sending delegates to Australia, stating that the farmer of New Zealand was well satisfied withi the price received, which was a higher price than the pre-war prices and would pay I very well indeed and that it was an • unfriendly act to go over to Australian and get the producer there to raise the? price. They were getting 157s which netted Is 4Jd, and he wanted to knoi< if there wa3 any man in that room, wh4 after talcing into consideration tl/ value of his land, the present price f stock, the labor of himself, his wife ay* family, could say that he could prodf* 6 butter at Is 4Jd and make it pay. )* n " sidering tho high prices for impley"* 3 ' {■ho cost of labor and other | ea ' v 7 charges it was impossible to mp e " pay at even lg sd. He had gov carc " fuily into tiro matter and had/' orked it out in different ways, and | a ar " m-cr charged up his time and"" 111 * °- liis family, interest and d/ eciation > it w&vs impossible to inako it/j a * *h»* price They were, ho conl ul ' e "' as£ ' in» 19s as their share of th/ €xtra Profits E'e was satisfied the/'*" 011111 g et 17s- 19s Vvould enable then*™ P a y J ust over 2d in addition to jJ at f«7 already receive * so that t/ res^ts ™»H be fairlv satisfactory. / >* connection with the sale of nexf ™™ » P™duce it was possible to / a ,h g P™ e > they mijht bo s«£ «£™ ™ld bo wanting in thsl.