DAIRY PRODUCE.

Taranaki Daily News, 9 January 1920, Page 6

DAIRY PRODUCE.

QUESTION OF DISPOSAL. PRODUCERS FAVOR OPEN MARKET. REPRESENTATIVE MEETING AT HAWERA.

Aa the contract made with the Imperial Government for the sale of the butter and cheese output of the Dominion for two years expires in July, the producers are commencing to take an active interest in the question of ita disposal after that date. In order to give producers an opportunity of thoroughly discussing the matter, meetings convened by the National Dairy Association have been held at various centres in the North Island, when expressions of opinion have been given, and delegates have been appointed to meet at Wellington next week —delegates representative of the whole Dominion—for the purpose of deciding on a definite line of action.

A meeting of representatives of butter and cheese producers was held at Haweia yesterday, when Mr. A. Morton, chairman of the National Dairy Association, presided over a very representative attendance of nearly 200 dairy factory directors. The following factories were represented:—A watuna, Bell Block, Cape Egmont, Cardiff, Eltham, Haweia, Jolls, Kaupokonui, Lepperton, Maketawa, Mangatoki, Mangorei, Mere Mere, Lowgarth, Midhirst, Moa, North Taranaki, Normanby, Okato, Omata, Opunake, Pihama, Rahotu, Riverdale, Stratford, Tavata, Tariki, Waitara, Warea, Tuna, Alton, Brunswick, Kahu, Opua, Kaimata, Melrose, Ngaere, Rapanui, Royal Arms, Westmere, White Cliffs, Waitoitoi, Oxford, Tuimoana, Tikorangi, Patua, Pembroke, and Whenuakura. ABSENCE OP INFORMATION.

The chairman, in explaining the object of the meeting, pointed out that for years past the dairy produce had been under Imperial control. This was done as a war measure. It had been hinted at various times that possibly the system of control would have to remain in existence for some time. On that question he had no definite information whatever.. Sa far. indei'd. the information had been only meagre —only what had been cabled through the Press Association to the papers. He detailed the steps taken by the National Dairy Association to convene meetings, which had been already held at Carterton, Palmerston North and Auckland, the Taranaki meeting being the last.

Tin l principal question scorned to be, what, was jroing to be tli,e action of the Imperial Government in the future? Were they going to eontinue the system of control that had been adopted in the past three year? by purchasing the produce here and having absolute control of the price at which it was placed on the market to the consumer? The National Dairy Association had endeavored to obtain the information, and had cabled their representative in London (Mr. Ellison), and had also asked Mr. Massey to endeavor to obtain information from the High Commissioner as to the Government's intentions, but so far no reply had been received from the Government. Mr, Kilt•ion had cabled:—"Ministry unwilling to make definite pronouncement. My opinion price butter likely be controlled for two, po.=.-ib]y three, years more. Cheese may be released next year. Depends on outside demand for world's supplies Anticipate Ministry will want make further contracts." This cable had been forwarded to factories. He read the latest cable which appeared in that morning's Daily News from Melbourne, stating that "It is reported in well-informed circles that the British Government proposed to continue the control of butter and cheese for the next two years., and the Government will be the sole importers of butter in the United Kingdom over that period." A QUESTION OF PRICE.

If there was anything in that cable which was likely to indicate the proba» bility of the Imperial Government continuing the control, it became largely a question of price, and he thought that if they were not satisfied with the price that had been received, now was the time to voice that opinion, as it would be impossible to get a more representative meeting, representing such a large output If factories desired to discuss the question of Government control relative to prices, now was the time to do so. During the past two years the Imperial Government had given them IOJd for their cheese and 181s for their butter, and the great disparity between these prices and those paid by the consumers of Great Britain, showed that the Imperial Government was making a handsome profit out of the produce, and while there were probably good reasons for this during the war, it might be pointed out that the war had now ceased, and those reasons did not exist to-day. No doubt they would have noticed in the papers from time to time the prices received by Canada and other portions of the British Dominions and elsewhere, and they had wondered if it were not possible to obtain prices here somewhat similar. He trusted that with the latest information to be put before them they would arrive at some decision in connection with the industry. He suggested that they might also consider whether it would not be advisable to endeavor to discuss the question direct with the Imperial Government. There was, he said, no doubt that Canada, from its nearness to England, obtained a pull, not only in the matter of freight, etc., but also because it was able personally to discuss prices, and he hopod I steps would be taken to place New Zealand on an equal footing in that respect. He pointed out that on the last occasion a strong endeavor had been made to have the negotiations carried out through the agent of the National Dairy Association at Home, but obstacles had been placed in their way. He was satisfied that if their requests had been acceded to the chances were that they would have made a better deal than was the case. It was not, however, for want of putting the matter before the powers that be, both in New Zealand and London. When making any future deal they should bear these matters in mind, and see if it were not possible, in view of the experiences in the past, to improve on them. He did not think six months before the contract expired was too early to open negotiations. He regretted that there was no information as to the intentions of the ImperiarGovernment, but it might be months before they obtained this, and -it would be advisable for the producer to be prepared to meet the Imperial Government when negotiations

A FREE MARKET. In reply to Mr. Williams, the chairman stated that a telegram in the Daily News that morning stated that producers in the Auckland district had affirmed the principle of a free market for dairy produce, and insisted on same at the expiration of. the present contract. Mr. Brash, National Dairy Association, stated that at Carterton the- delegates representing cheese factories expressed the opinion that the sooner a free market was available the better; but they reaiised that there was likely to be Government restrictions. They did not pass any resolution, but left their delegates a free hand. At Palmerston they were of> the opinion that all price-fixing should cease, and that producers should be allowed to market their own produce. There was, he stated, a general feeling that prices were to be controlled, and if that was so, the Government would probably attempt to purchase the produce. All knew what happened in Canada when the Government attempted to purchase the cheese at 23 cents, but through outside purchases the price Was raised to 32 cents The Imperial Government had since raised their offer to 25 cents, at which price some had been sold to them. He did not think there was any fear that Canada would spoil the market regarding cheese. Australia was the weak spot regarding the butter. It must also be remembered that the exchange between Canada and England was now very heavy, i»<a fully made up for any disadvantage that New Zealand suffered in comparison with Canada as regarded freights. He wished to emphasise the point tliat the producer of New Zealand had every right to get the same price f.o.b. as Canada had received, in view of the difference in exchange rates.

THE FEELING IN BRITAIN. Mr. J. B. Murdoch (.Tolls) said that the matter was one of great importance. He and Mr. Forsyth had gone deeply into the matter ajid endeavored to find out the intentions of the Imperial Government, but they had obtained no satisfaction. Some of the officials of the Food Control Department did not favor control, as they felt that it would keep prices high, whilst others were afraid that with an open market there would be a tendency to extreme prices, which would create labor troubles. As far as he gathered from the members of the Control Department, there was a tendency to somewhat relax control. He did not think they would buy, as in the past, through the Government, but would treat with the producers. Referring' to Canada, he pointed out that the 2a cents meant at Montreal, so., that the price on arriving at London was 2S cents. He found that New Zealand cheese, despite its distance from the Home market, arrived there in equally as good condition as Canada. He strongly recommended (lie meeting io endeavor to have an owpii market, when there was no question whaievcr (hat prices .would jump considerably. He pointed out that the Imperial Government bought at high prices from Denmark, South America. England, etc, and pooled all ihe produce, striking an average. The New Zealand purchase prico being the lowest, New Zealand producers were making up the losses on (lie other prorlut i. The English farmer received 2s Id per pound for his cheese, and this was sold at- Home for Is Bd, the loss being made up by the Control Department out. of cheese from New Zealand and. KonUi Africa. However, representatives of South Africa were at Home endeavoring to obtain an increased price. He thought, producers should place the position before the Imperial Department regarding their desire for an open market, and leave them to make the first, move. There was no question that produce was scarce in Great Britain, only about 20 per cent, of the butter and 70 per cent, of the cheese required coming into the country. They sflould certainly endeavor to have an open market. Hj did not think any trouble was likely io arise regarding shortage of shipping, as a great many more ships had been fitted with insulated space than was the case before the war. SHIPPING POSITION BETTER.

In reply to Mr. Corrigan, the chairman stated that he had no information regarding whether shipping control was going to continue, but at present the produce was being shipped as quickly as it was made. The shipping position had improved to such an extent that there was no accumulation. The fact that they were so anxious to get our produce was a sure indication of the strong demand for it, which more than ever fitted in with the idea that existed in the minds of some directors that they should have a free market, rv in the event of that being denied them, they should get the full" net value for that produce. Mr. Corrigan said the reason he asked the question was because the shipping control question was the screw put on them during the previous negotiations. The chairman said that though the control might continue there would not be the same scarcity.

Mr. Corrigan said that he had always held the opinion that they should have a free market. There was no doubt that farmers should expect to receive the same prices as did those of the O.'d Country. He moved that the producers of Taranaki agree that they should have a free market after the present contract expires. ' Mr. Ogle (Bell Block) said if the producers demanded a free market the question was, could they get it? The chairman said that was a question for the Imperial Government to say.

Mr. Corrigan: There is nothing like trying. Mr. J. Marx (Mangatoki), in fieeondinjr, said that first, arid foremost they should decide on a policy. Whatever methods they adopted should live after. They owned the produce and were entitled to get what it was verdi. During the war they had to bow to circumstance, but now, happily, the war was over. OPEN MARKET THE BEST.

Mr Sangster (Midhirst), in supporting, said the resolution asking for an open market was the best they could do. If the Imperial Government decided to purchase (heir produce the matter would be open for negotiation afterwards. Mr. Gibson (Rahotu) considered the resolution as proposed a harmless one. The chairman said that he had taken the resolution to rend as follows: "That in the opinion of this meeting the best interests of the producers will be met by them being allowed a free market for their'produce." Mr. Shotter (Midhirst) moved as an amendment that "this meeting of producers insist on an open market.'' Mr. Skedgwell (Tuna) seconded the amendment. Mr. .1. S. Connctt (Bell Block) said that, whilst of opinion that they should have a free market, he did not think i they should go so far aa to insist without liming th» viftiM nf iha Imperial

Government. It Was, he thought, for them to express the opinion that now the war was over they should revert back to pre-war conditions. Mr. J. Marx pointed out that while the proposer and seconder were entitled to their opinions they must remember that they were dealing with the Imperial Government and were not in a position to insist.

Mr. Gibbs (Alton) was rather sorry the amendment had been withdrawn. If they did not insist on an open market they should at least insist on getting full value. If the Imperial Government purchased our produce cheaply it should he supplied to the consumer cheaply. It was unfair that, on the pretence of giving cheaper cheese to the consumer at Home, the New Zealand' producer should be giving enhanced juices to the produce at Home and elsewhere, as was being done under the pooling system. PRODUCTION AT HOME.

Mr. Marchant (Cardiff) favored a resolution to the effect that the war having now ended the producers of Taranaki were desirous of a free market, and ii.i assurance of adequate shipping. Mr. Ranford (Stratford), expressed his approval of the resolution- He Jjfelt assured that any committee -set up would do its utmost to secure a free market or, if necessary, obtain the fullest possible price. (Applause). Mr. Chapman (Jolls) stated that while the farmer at Home obtained 2s Id per lb. for his butter that was done to induce them to produce cheese, as the farmer had such great inducements to place his milk on the open market. The little quantity of cheese made in England would not effect the pooling much. The chairman said that in Great Britain over two 'million cows were milked as compared with 000,000 in New Zealand. They produced over twice as much butter and cheese as New Zealand did.

Mr. Rowlands (Mangorei) said that the greatest need in New Zealand today was increased production, and the greatest incentive to increased production was an open market. Mr, Gibson did not consider Great Britain a great competitor as regards butter and cheese, because most of their milk went to supply the cities- Regarding the satisfactory position of shipping, he doubted if this would have been so good hut for the control svstom. Another point that he was not clear on was as to how much the freight and charges on our produce had increased. Regarding the high prices given to Denmark, he pointed out that this was given to prevent the produce from being cold to Germany.

HIGHER FREIGHT RATES. Mr. Gaustad (North Taranaki) asked whether the shortage of foodstuff in England would not necessitate the fixing of prices for some time yet.

Mr. Gibbs asked whether it was possible to give an idea of the cost of placing New Zealand produce on the Home market. The chairman said no information was available, but they knew that it cost 5 : -d per lb to land Canadian cheese, not including the exchange, but including handling and selling. He did not think New Zealand cheese would be less. Before the war the freight was Jd per lb on cheese, and he believed it. was now Hd per Hi. Butter had increased proportionately. Tf it, were possible for the New Zealand producer to be paid on the basis of Is Rd per lb for cheese, and 2s Od per lb for butter, which were the retail prices at Home, thev should net in New Zealand is hi p( , r ]"),. far cheese and Is lOd to Is 11,1 for butter. The resolution was then carried. Mr. Corrigan suggested that a copv of the revolution should be forwarded to the Premier, who should be asked to convey it to the Imperial authorities. The chairman stated that this would be a matter for the meeting of delegates nevt week.

ACTION WITH AUSTRALIA. The chairman stated that in connection with the sale of butter, it would be necessary to endeavour to try and bring the Australians into line with the New Zealand producer somewhat in regard to their ideas of value. He pointed out that New Zealand was largely bound by the price received by Australia in any sale of butter made to the Imperial authorities. Australia did not. affect the position regarding cheese, as their output was so snml!. He referred to the steps taken two years ago in sending a, delegation, and to the fact that his action thereon had been commented, nn, .but the matter was undoubtedly a most important one to the producer- *

The following delegates were elected a committee to proceed to Wellington on Wednesday to meet the delegates from other parts; Cheese (seven): Messrs. .7 B. Murdoch (.Tolls), W. D. Powdrell, M.P. (Kaupokonui), J. S. Connett (Bell Block). .T. Marx (Mangatoki), H. D. Forsyth (Eltham). J. R. Corrigan (Hawera), and J. R. McKay fElthnm): buttpr (five) Messrs. G. Sangstcr (Midhirst). J. Brown (Maketawa), J. H. Smith (Waitara Road), ,T. R. Rowlands (Mangorei), and F. Ranford (Stratford). The chairman was appointed a member of the Committee ex-offieio. Tt was resolved that the expenses of the committee be met by a, lew of 3d per ton on the output 'of cheese, and lid on the output of butter. Considerable discussion took place on the powers to be delegated the committee. The majority of members were opposed to giving them any powers in the disposal of the produce without calling a further meeting of producers, but on it being pointed out. that the meetings at Palmcrston North and Carterton had given their delegates full power to act in connection with the disposal of their produce to the Imperial Government, it was finally resolved on the motion of Messrs. Gibson and Johnstone (JolJs), that failing the obtaining of a free market, delegates be given full power to act in connection with a sale to the Imperial Government. REFUND OF BUTTER-PAT LEVY.

Mr. Murdoch asked whether the principle of a free market would apply to New Zealand also. The chairman stated that it would not, tout that did not matter, as the Government, by refunding the money paid to the equalisation fund during the past two years, had affirmed the principle. There would be no more equalisation fund. This, he said, would no doubt be news to Mr. Murdoch, and he was pleased to be able to convey it to him on his return. He also intimated that the producers were now endeavoring to get hj, refund of the 3d butter fat levy. The question of endeavoring to bring the ideas of the Australian butter producer more into line with New Zealand's idea of value was then discussed. Tn the course of discussion, it was pointed out that the Australian output was .'IO,OOO ton's, and that it was not fair that Nsw Zt '~r.i should hj» n«n-

alised by their receiving a lower price. Mr. Murdoch said that if Australia Were left to deal with the Imperial authorities there need be no fear but what they would get full value, as they were dissatisfied with the previous deal, which was the voice of the Australian Premier. On the motion of the chairman and Mr. McKee (Omata) it was resolved that the representatives of the producers at Wellington next week ho. authorised to take whatever steps they deem desirable to. bring the ideas of other producers into line with our own.

THE PALMEESTON MEETING. A meeting of representatives of 52 cheese and butter companies was held in Palmerston North on Wednesday, to meet Mr. Brash, who has just returned from a tour of inquiry embracing thy United States and the United Kingdom. Mr. ,1. T. Brown was voted to the chair.

Mr. Brash gave a brief review of the position and the prospects of dairy markets in Canada and the United Kingdom.

The chairman having explained the objects of the conference, the following resolution, moved by Sir James Wilson, and seconded by Mr. BrOadbent (Levin), was carried: ''That the time has arrived tvhen, in the opinion of this meeting, there is not sufficient information to enable it to come to a decision on the disposal of next season's produce, but is prepared to accept, any arrangement the I'roducciv Committee agrees lo.''

On the motion of Mr. T. Parsons (Dairy Unirni, the following committees were, set up to represent the dairy interests at the confeiWice to be held in Wellington on January H:—Cheese: Messrs. ,1. T. Brown, J." D. Macfarlaue, Lawson, Gilday. and Paviour-Smitli; butter: .Messrs Broadbent, Alpass, Hanson, Parsons, Kwington, Darragh, Taylor and Hawarth.

It was resolved: ''That as tiie shortage of coal is a hindrance to the dairy industry, the Government be urge.d to push, on with the " Mangahao hydro-electric scheme."

In view of the proposed visit of Mr Brash (o London to iclieve Mr. Ellison, Mr. Moss took the opportunity to wish him boo voyage and success in his new sphere of activities. At the same time, lie extended him the hearty good will of all in New Zealand connected with the dairying industry, referring in felicitous terms to the devoted manner in which he had done his work during his long service in the interests of dairying in the Dominion.