BUTTER EXPORT.

Taranaki Daily News, 28 June 1920, Page 4

BUTTER EXPORT.

AUSTRALIA'S BARGAIN WILL NEW ZEALAND FOLLOW! HIGH LOCAL PRICE INVOLVED. . (By Telegraph.—Special Correspondent,) Wellington, Last Night. The sale of Australian butter at 240« per cwt, f.0.b., as reported by cable. must be interesting news to the New Zealand butter producers. Some few days ago the producer* m conference agreed to sell their output to representatives of British Co-operative Societies, and it was then assured that there was some chance of securing a free market, although, all official advice was to the contrary. But, if the A.us« tralians nave been able to secure such a good price as 240s under requisition terms, a sale of Now .Zealand butter to the British Government on similar term* would almost certainly be more attractive business to the producers than « free sale to the co-operative societies, especially as it is understood that the price offered was not in excess of 2405. In any case ft is practically certain that the New Zealand owners of butter will have to sell to the British Govern-. rnent, but whereas a few days ago they were unwilling to do so, a price SUCH a» the Australians have obtained ■ aay, tempt them. If such a sale should be made it would involve an increase in the price of butter locally to about 3tf 3d per lb. | AUSTRALIAN CONTRACT. ■ • TERMS OF THE DEAL. By Telegraph Frws Asso.—Cowrlrtt Received June 27, 5.6 P.M. London, June 26. Delegates have completed a contract with the Food Ministry for the pur* chase of the Australian surplus butter at a price of 240s a cwt. f.o.b. for butter grading 90 points, with a shilling a cwt. more for each point from 91 to 96, inclusive, a shilling a cwt. less for each point under 90, and an extra 3s a cwt. for unsalted which exceeds 25 Jet cent. of the whole. The Ministry pays storage charges after an average of six weeks. The Australian Committee retains the right to supply South Africa with butter, provided the quantity does not exceed fifty tons monthly. The period of the con* tract is from September 1 to March, 31, and to include butter delivered in the cool stores in Australia till March 81 j—? Aus.-N.Z. Cable Assn. THE W.C.S. SCHEME. London, June 25. The decision of the New Zealand far* mcra to distribute butter and checs» through the British Wholesale Co-oper-ative Society has disagreeably Shocked Tooley Street, which admits that the decision will seriously affect them. Agents declare that it is e. pOO? reward for years devoted to popularising New Zealand dairy produce. However, it was not altogether unexpected. The agents add that the Socialistic trend in New "'Zealand predisposed fanners to accept the offer of a supposedly Socialistic British organisation, but the agents declare that the fanners will find co* operative distribution very different from Government control and not a substitute for it.

It is the basic principle of the Cooperative Society to buy in the cleapest possible market in order to enable ■their own shops to compete with. pri« vate retailers. This, in the long run, i 3 bound to conflict with the fanners' object of getting the best price. The step means that the fanner i« placing himself in the hands of one buyer controlling only one-tenth of the total trade of the country. It also means, that New Zealand butter will lose its old markets as the Co-operative Society at present largely sells Danish. Private retailers will refuse to sell New Zealand butter owing to their antagonism to the Co-operative Society. They will be able to get more Danish and sell it in competition with New Zealand. Agents, however, do not contemplate counteraction. They say the New Zealand farmer is free to sell as he chooses, and they are confident that experience will show.the wisdom of tte old policy of trusting to private traders. Some agents point out that the Ministerial Teplies cabled on June 1G and 21 indicate that there is no immediate dan* ger. They believe a new situation may arise before the trade is decontrolled.

The cables referred to were- as. follows:

"In the House 01 commons, replying" to a question asking whether the Co* operative Wholesale Society was endeavoring to purchase New Zealand'* output of butter and cheese, Sir W. Mitchell Thomson said he had no information regarding the precise tenor of the society's negotiations, but thi Ministry of Food was prepared to negotiate for the exportable surplus of butter to March 31, 1921, on lines similar to those of the previous contracts.

"The Government, he added, was not aware that' the Co-operative Wholesale Society intends to negotiate for the purchase of New Zealand cheese, but should any attempt be made to exploit the consumer the Food Controller would not hesitate to use any powers provided by Parliament."