BUTTER EXPORT.

Taranaki Daily News, 7 August 1920, Page 152

BUTTER EXPORT.

QUESTION OF DISPOSAL. TARANAKI PRODUCERS' VIEWS. DEMAND FOR FREE MARKET. ■ A very representative gathering of hitter producers was held at Inglewood yesterday, to discuss the present position in regard to the disposal of the coming season's output. There was an attendance of about 70, practically every butter factory in Taranaki being fully represented.

Mr. Arthur Morton, president of the National Dairy Association, and chairman of the Dominion Butter Committee, who presided, explained that, with Mr. Brown, a fellow member of the Butter Committee, he had called the conference so that the position regarding 1 the disposal of next season's output of butter could be discussed. He detailed the position up to the present, stating that a conference of butter producers in Tara.naki had instructed the Butter Committee to demand a free market for their produce from the Imperial Government, but so far this had been refused them.

It had been stated by the Food Control authorities that a free market Would result in prices soaring so high that only the wealthy would be able to pay the price; and although they had heard that butter, if taken from control, would rise to 5s per pound, no such thing had happened. la a very few eases, where people had been without butter for years, this did happen, but butter soon found a uniform low level of 3s 3d to 3s 6d. It was evident that the production of Home butter had increased, because the authorities reduced the price to 2s Sd, though it was now proposed to raise it to 3s. A cable in that morning's Daily News showed that English butter was quoted at 3505, and Irish at 3705, a considerable advance of a fortnight ago, when the prices were: English, 3425; Irish, 345s to 3505. 1 THE PRESENT POSITION. Mr. Morton understood that the English Government had purchased a considerable, .quantity of Danish butter at 2455, but this price would not be taken as actual value, because there was another consideration, namely, that the British Government supply the Danes wjth a quantity of coal, and no doubt the Danish Government would make up the added value to the producer. A fortnight ago, he said, the Dominion Butter Committee had been called together to consider a suggestion of the British Food Controller to purchase at 24Cs, They had no instructions to negotiate for a price for their produce, hut to press for a free market, and tbey therefore felt that they could not negotiate on a price basis, and if that was unobtainable they would have to go back to the producers and ascertain their wishes. They had, he said, been able to get the Prime Minister to send a cable to the Food Controller putting before him the views of the producers, particularly in regard to a, free market. Mr. Banford asked whether there was any .hint of commandeer on the part | of the Imperial Government in the event : of negotiations failing.

The chairman said that there could be no commandeer at this end. He could assure them that the Prime Minister was sympathetic to the producer, and was desirous that the producer should get the full benefit of the marfeet, whether a free or a limited market.

Mr. Hickey (Opunake) said that in pre-war times New Zealand butter realised from 8s to 10s per ewt. more than Australian butter, and he thought that thev should receive the same difference now.

Mr. Shotter said that the Australian price was no good to tlrem. It would only enable factories to pay out 2s 3d for butterfat. whereas cheese factories at the prices offering, would pay out considerably more.

MARKETS LIMITED. Tiie chairman said that unfortunately they could not find another market for the whole of their produce. The total quantity that could be shipped to America would only represent one-fifth of the output. Mr. Ranford asked whether there was any danger of a shortage of shipping, The chairman said that there need be no fear on the score of getting their butter away. The Dominion Butter Committee was agreed that the shipping position was better than it had been since the war, and was improving, Mr. Brown, a member of the Butter Committee, agreed with this. He pointed out that there were shipments of lamb now going to America, and this refrigerated space would be available for butter later.

In reply to Mr. Shotter, the chairman said that freight on butter had more than doubled. He did not think it could increase in the future. Within a year or two it would come down, but he did not think there would he much decrease in refrigerated freights for a while, though there probably would be in outward freights, as there wap not so much refrigerated space available in proportion to non-refrigerated space. Mr. Sangster said that all would like to get a free market, but failing that, and the Imperial Government offering to purchase on a basis of 3s per pound, controlled retail price at Home, would the New Zealand producer be in a better position to accept that price or ship to a controlled market? The chairman said that while this was a matter of individual opinion, he thought they would be better to ship to a controlled market, as the cost of placing it on the market would be mtich less to the producer than if it were allowed to go through the costly channels of distribution adopted by the Pood Control Department.

FREE TO SELL ANYWHERE. Mr. Sinclair (Opunakc) asked whether the chairman thought they would be able to export to England otherwise than if the produce was purchased by the Imperial Government. Tile chairman said that they were still asking for a free market or a controlled market before considering selling to the Imperial Government.

In reply to Mr. Pearce (Mangorei), the chairman said that if they did not sell to the Imperial Government they were not compelled to send their produce to England. They would senrl it wherever they could get a market. .Thev had not lost sight of the, possibilities of an American market, and even in the event of a sale to the Imperial Government. they would endeavour to reserve a portion of the output in the interests of the producer. He pointed out that there had been a difficulty in supplying the American market, as America would not permit the importation of butter that contained a trace of preservative, and as with home-separated cream it was almost impossible to keep out preservative, they had had to export to America via Canada, to which country the regulation did not apply.

Higher American price. Mr. Weybourne (Midhirst) asked if, in the event of a portion of the output being sold to America at a higher price, how was it proposed to equalise the price with factories that had to export to England. The chairman pointed out that some factories had been offered 2s 6d per pound for shipment to America, but how it would be possible to poil Ihe surplus he could not conceive. Befoie the war some factories sold to America at. a higher price.

Mr. Rowlands asked if the chairman thought there was little hope of a free market.

The chairman said that 50 far they had been refused this, but the Butter Committee new had the backing of the Prime Minister, which was the strongest support they had yet received. Mr. Ranford (SI rat-ford) thought that the Butter Comniitte; had adopted tlia right attitude in fighting so strongly for a free tnarket. The butter product** felt that thev had been penalised by the treatment they had received, and this would be obvi.uoil if they were given a free market. Ho full every con-

fidanco in the Butter Committee, and moved that in tho event of not being able to obtain a free market the Butter Committee be given a free hand with the disposal of the produce, while Jetting it remain an instruction that they use their utmost endauvors to obtain a free market.

Mr. Bowler seconded. Mr. Sangster asked what would be the position of factories that had made sales elsewhere, in the event of a sale to the Imperial Would they have to come into line! ' The chairman said that in past sales with the Imperial Government the contract had been made with regard to the whole exportable surplus, with no reservation for selling elsswhere. In this year's contract with Australia a elauee had been put in to the effect that up to 50 tons Bpr month could be reserved for the South African market. Having affirmed the principle, there would probably be no difficulty in arranging with the Imperial Government for a reservation of a certain quantity. BUTTER OR CHEESE ?

Mr, Brown said the Auckland people had taken up the attitude that no matter what anyone else did they would not sell to the imperial Government. Mr. iShotter said that dairymen would like to know as soon as possible what was going to be done, i They could not take 2405, as against 2s 9d. for cheese. The chairman said that was the. reason for calling tl>e meeting. They wanted to be in a position to negotiate with the Imperial Government in the event of their request for a free market being refused.

Mr. Hickey (Opunake) said that the difference in price between butter and cheese was causing a good deal of discussion in his district.

A director asked what price was pro> posed to be asked.

The chairman said that the question of price had not yet been discussed by the members of the Butter Committee. Their instructions were to press for a free market. , A director said that in discussing the price they should discuss it on the basis of the increased price of basic slag or manures.

The chairman: We don't buy our manures from the Imperial Government. Mr. Yeates (Inglewood) thought they might possibly arrange to have a selling floor in New Zealand, and sell their produce in open competition every fortnight. The chairman said that this would mean a bigger gamble than ever, as the produce would be sold three months before it would be placed on the market. To further questions the chairman said that the Butter Committee were prepared to accept as final the next cable from the Imperial' Government, and if a free market were refused they wanted to be in a position to know what the producers wished them to do, without the delay of calling a meeting. INDICATION OF PRICE. Mr. Sinclair (Opunake) suggested that the producers should give some indication of the price they wished to receive. This should be on the basis of cheese prices, less 2d. the value of skim milk as compared with whey. He moved an amendment in this direction.

Mr. Smith (Waitara) considered that, they should join with Auckland and stick out for a free market, thereby strengthening the hands of the committee.

The chairman said that they were informed that, in the event of no sale, the Imperial Government would commandeer the produce on its arrival at Home, and in that case it would go through the prescribed channels of distribution, thereby adding expense to the producer. The 'committee would fight this. The authorities at Home were only concerned with keeping the price to the consumer at a certain maximum, and if they could show that tliey would distribute it at a lesser cost to the producer ho thought the authorities might agree to this.

Mr. Brown (Malcetawa) deprecated the fixing of a price at that meeting. That should ho left in the hands of the Butter Committee.

Mr. Sangster (Midhirst) seconded the amendment. As butter producers they did not want to be always in the invidious position of playing second fiddle to cheese. Some high prices had been given for cheese, and the prices for butter should be fixed on a parity. Mr. Weybourne (Midhirst) deprecated binding two members of the Butter Committee to a certain price. It would be different if the whole committee were present.

The chairman pointed out that if the amendment were carried the hands of the two members would be tied, and they would be compelled to call a further meeting in the event of a lesser price being offered.

The amendment was then withdrawn and the motion carried.

WHAT PAYS BEST?

Mr. Sinclair (Gpunake) then moved that it be a recommendation that in tlie event of negotiations being opened up with the Imperial authorities for the sale of the butter, tlmt the Butter Committee ask for a price equivalent to the price obtained by cheese-producing companies. He pointed out that in the event of this not being obtained the companies would change over from butter to cheese. His company was thinking of doing so. Mr. Sim (Omata) M in seconding, said that the seriousness of the position should be emphatically placed before the Premier. They could not manufacture butter if it paid better to manufacture cheese. His company was considering changing.

Mr. Bowler (Moft) said that his company was in a worse position. Mr. Brown (Maketawa) said that the Government, instead of improving the position regarding butter, were making it worae, as by driving butter factories into the manufacture of cheese they would be lessening the output of butter, and so making it dearer. There were now only fourteen factories making butter in Taranaki, and it would not he long- before that number was reduced.

The chairman said that there was no question but that with a free market butter would pay out a better price than cheese, but as long as thev were controlled they would always be' placed in an unfair position as compared with cheese.

Mr. Hino (Tikorangi) asked how they proposed to fix the parity for cheese, as he understood that f.J>o Vices offered previously for cheese hiul been withdrawn.

The chairman said that some factories had sold at prices in the vicinity of Is 2'Ad. What would be the ultimate position of those factories that had consigned it was difficult to say. The resolution was then carried.

Mr. Brown suggested that dairy fanner? should lose no opportunity of placing the matter before the Premier, and on the motion of Mr. Bowler (Moa). seconded by Mr, Sinclair (Ofunake), it

was unanimously resolved that a telegram be forwarded to the Prime Minister, stating that this meeting of the whole of the butter factories in Taranaki affirms the desirability of a free market being granted for butter. A vote of thanks to the chair concluded tlje jneeting.