FREE MARKET WANTED.

Taranaki Daily News, 14 April 1920, Page 8

FREE MARKET WANTED.

FOR NEW ZEALAND BUTTER. UNPOPULARITY OF IMPERIAL COMMANDEER. The Prime Minister informed a Wellington Times representative that inquiries hud been made of him by the Imperial Government, with regard to the terms, if any, upon which the New Zealand butter producers will sell to j'.ritain their exportable surplus of butter for the 1920-21 season. "I believe," added Mr. Massey, "that f.h<> Dominion J:ir.ier Committee v.'nrts .\> meet me to discuss the matter sdiout Kvtiay next." V.q i?rms had b'jen laontiorte.l to him. he stated, by.either s.de as yet, and, of er.urse, he could not. 3)?ntion them if they had been. It war, simply an inquiry by the Impeiial Covmvnt as to the forms on wiii-Ii the wating s.p.sjira output could be s-jeu'.ed.

UNTIL JULY 31st. The existing Imperial contract', or "commandeer," for the purchase of the exportable surplus of the Dominion's butter output holds good till July 31st next. The operations under the rnnmandeer commenced in November, .1917, since when 1,707,430 ' bows of buttsr had been purchased by the Imperial Supplies Department on Imperial Government account, and on March 31st last, there was a further 77.482 boxes in store ready for shipment. The amount paid by the Imperial Government to date for New Zealand nutter is upwards of £8.143,000. The price paid has ranged from 157s per cent, for first-grade butter in the first season, to lSls per owl. in the lillS-lfl, with proportionate prices for other grades. In the first, season the Imperial (iovcrnnient. also shared with 'l'.l' .producers :".0 per cent, (amounting to .t'.'iOS.OOP) of its profits on the sale of butter.

DAIRY FARMERS WANT FREE MARKET. It is understood that the New Zealand butter makers are not inclined to favor th/> continuation of (lie commandeer after duly 31st, llieir desire being to seeuro a free market, and so obtain' the present high world's price for their butter. During the war, they point out, the British Government recouped itself for the high prices paid fo:r Danish and other Continental butter during that period by the low prices pin'd for New 'Zealand and Australian butter; and now that the war is over, the Nov.' Zealand producers, who always looked askance at this system, are very unwilling that it should continue. ' Failing the renewal of the commandeer, the British Government might, of course, control the price of all New Zealand butter landed in the Old Country: and in that ease, it is pointed out that the only resource for the New Zealand producers would be to endeavor to open up foreign markets for their butter, practically all of which has hitherto gone to England.

THE PRICE OF BUTTER. A point of greater interest to the great bulk'of New Zealanders, no doubt, is as to the price of butter in the local market. Consumers are anxiously asking what will be the result on the local price if the dairy farmers win their free market and secure the extreme world's price at the present time. Will the Government, it is asked, subsidise the butter-makers, as was done last season, to supply the New Zealand market at the present price? WHAT PRICE MARGARINE?

Meantime margarine-producers scent a possible opening in the Dominion, as the following extract from a circular recently sent out by a leading New Zealand'exporting house shows: "We have been wondering whether if butter prices in New Zealand were increased very much, the use of margarine would be encouraged out here as well as- in Canada. The position might be forced upon lis. When one notes that the average price of Canadian butter to producers was fin? cents (normally 2s 4d per lb), for the season, it can easily be imagined that, especially in the big centres of population, oleo-margarine would meet with an increased demand." : ,-iLJ-a