DAIRY PRODUCE PROSPECTS.

Taranaki Daily News, 31 December 1919, Page 6

DAIRY PRODUCE PROSPECTS.

AN. INTERESTING JOURNAL. ' The National Dairy Association has issued ii circular to factory companies which contains matter of considerable interest to dairy farmers and the public. We ";ivo the following: .Probably the question which more than imy other is exercising the minds' of dairy company directors and officials is: "What is going to be done with our dairy produce after July 31st, 15)20, when the present contract with the Imperial Government expires ?" With a view to securing any information which might be available on this point, the writer cabled Mr. Ellison to investigate, and also wrote Mr. Massey asking if he would, in the interests of the producers, cable London and ascertain, if possible, the minds of the Imperial authorities in this connection. Mr. Massey immediately agreed to send the necessary cable, but up to the present no reply has been received. -Mr. Ellison cabled as follows: '•'Contracts butter cheese Ministry unwilling make definite pronouncement. My opinion price butter likely be controlled for two possibly three years more. Cheese may be released next year depends 011 outside demand for world's supplies. Anticipate Ministry will want make further contracts. —Ellison."

This cable gives probably all the information we were entitled to expect and which, boiled down, simply means that the Imperial authorities have not considered the matter with a view to a decision. Meetings ot butter and cheese producers will be held early in January to consular the position, and the discussion will, no doubt, centre around the question "whether the producers shall demand a 'free market,' or, if possible, sell to the Imperial authorities." The position ot food supplies "of the world is well-uigh desperate. Mr. Hoover, who handled the food supply of Belgium (luring the war, and who, after the signing of the armistice analysed the whole position in the interests of the Allies, is probably the greatest authority in the worlrl to-day on the question of food supplies. In his report to the Imperial Government, writing of the causes of food shortage, he says: "(1) From all these'causes, accumulated to different intensity in different localities, there is the essential fact that unless productivity can be rapidly increased, there can be nothing hut political, moral aud economic chaos, finally interpreting itself in loss of life on a, scale hitherto undreamed of.

"(2) No economic policy will bring food to those stomachs or fuel to those hearths that docs not secure the maximum. There is ho use of tears over rising prices; they are to a great degree a visualisation of insufficient production. "(3) The stimulation of production lies in the path of avoidance of all limitations of the reward to the actual producer. In other words, attempts to control prices (otherwise than in the sense of control of vicious speculation), are Ihe negation of stimulation to production, anil can only result in further curtailment of the total of commodities available for the total number of human beings to be fed, clothed and housed. The argument so much advanced that the world shortage may develop, and i justifies continued control of distribution and price, is based upon the fallacious assumption that, even if the world markets are free of restraint, there is a shortage to-day in any commodity so profound as to endanger health and life." This report certainly indicates that in his opinion price restrictions should cease. On these grounds alone there is abundant evidence in favor of the "free market." It is more than likely, however, that Mr. Ellison's opinion "that price of butter will be controlled for two or three years" is the correct one, and if butter prices are going to be controlled it is almost a certainty that cheese prices will also be controlled. The question then arises: "If prices are going to be controlled in England will the "imperial authorities purchase the New Zealand output or will they allow the producers to ship through their own. channels to any market they choose?" The position which arose in Canada in connection with the cheese purchase leads the writer to believe that if there are price restrictions in England, the Imperial authorities will purchase the A T ow Zealand output. Should this be the decision of the Imperial n"Hioritie?, what is going to be the prii--;'? The day is past when the British Government is entitled to make a profit out of the proj (Ulcers of the Dominion, and the outcry against the Home authorities for pro- | Steering in connection with wool and : 'neat might well apply to dairy produce. ! The producers of New Zealand arc enj titled to one price and one price only, ! viz., retail price in England .le'ss all comj missions and charges for handling. To | secure this price the writer is strongly jof the opinion that in the event of the | Imperial authorities deciding to purI phase, one or more representatives from jiiot-h butter and cheese committees , should pioceed to London and negotiate j the deal. We. feel sure that Mr. Mas-

■iey, as representing the Dorainion-Gov-ernmeut, would lend every support to negotiations in this way. Canada has invariably secured better prices for their produce _than STow Zealand, due mainly i.o the fact that representatives of the Imperial Government visited Canada and made the deal direct with representatives of the producers. They are not intely to send representatives to New Zealand, so let representatives of producers go to London. There will certainly he a keen demand amongst prodiicera, and rightly so, for a "free market," and the above suggestion to send representatives to London is well worth consideration if only to fight for tlwi' "free 'market."

We understand that a meeting of representatives of dairy companies will meet in Hawera next month to discuss the position.