The Daily Newes. MONDAY, AUGUST 9, 1920.

Taranaki Daily News, 9 August 1920, Page 4

The Daily Newes. MONDAY, AUGUST 9, 1920.

THE BUTTER MARKET. That dairy farmers are considerably perturbed over the price for the coming season's output was fully demonstrated at the meeting at Inglewood on Friday, when practically every dairy factory in Taranaki was represented. The position at present is certainly very unsatisfactory. The commandeer has ceased, but the Imperial Government retains the control of prices, while the producers are insisting on an open market in order that they may reap the full advantage of higher prices, and to that end instructed the Butter Committee to demand a free market, but, so far, this has been refused. The position, so far as the Butter Committee is concerned, is that no alternative to a free mar-;

ket had been authorised by the producers, so the committee could not negotiate on a price basis, a solution of the point being practically the object of the meeting. It was stated that the reason why the Imperial Government was retaining the control of prices was that the Pood Controller considered a free market would" result in prices sparing so high (possibly five shillings a pound) that only the wealthy would be able to pay the price. The latest cable stated that English butter was quoted at 350s (3s l|d per lb), Irish being a little per lb dearer. Mr. Morton said it was understood the English Government had purchased a considerable quantity of Danish butter at 245s (2s 2£d), but he considered that as the British Government supplied the Danes with a quantity of coal, the Danish Government would no doubt make up the added value to the producers. This, of course, is mere surmise, though it can be reckoned as a possibility. It may be assumed that the 'figures placed before the meeting indicated that the price the Dominion producers should obtain would be in the vicinity of three shillings a pound, and Mi'. Morton, in reply to a question -io ti whether it would be better to sell to the Imperial Government at 3s, or,ship to a controlled market, expressed the opinion in favor of shipping to a controlled market, as the cost to the producer would be less than if the butter were to go through the costly channels of distribution adopted by the Food Control Department. The alternative is for j the producers to find fresh markets, but it is not so easy as some might think. America can only take about a fifth of the Domin* ion's output, and that only when free from all trace of preservative, necessitating shipping butter to America via Canada, where the regulation does not apply. Even then the best offers some factories had received for shipment to America were 2s 6d. The meeting, in the end, placed the onus of ; making a decision on the Butter Committee, which was given a free hand with the disposal of the produce, on the understanding that a free market was the crux of the situation. There is room for doubt as to' the wisdom of some of the speakers in claiming parity of values of butter and cheese, for if the priee of butter were to be fixed on the relative priee of cheese, the butter producers might find, in the not improbable event of a drop in the price of cheese when meat prices decline, that they would make a bad 'bargain. Nor should the factor 'of margarine be left out of sight. Unquestionably the producers should do all in their power to secure a free market, but they must also recognise that the Imperial Government will manage its own affairs in its own way, and not merely to suit the producers of the Dominion. The Imperial Government has the power not only to control prices in the United Kingdom, but to commandeer foodstuffs landed there, so that it is likely to be harmful if the producers hold out veiled threats of sending as much of their output as possible to other markets. The avoidance of friction is absolutely essential, just as the claim for a free market is fair and reasonable. There can be, for instance, no serious question of driving butter factories into the manufacture of cheese. The outlook for butter, with a free market, is as good as that for cheese, and sooner or later the free market will come. Meanwhile the Butter Committee can do all in its power to hasten that time. Already some factories (ohiefly cheese) have decided to consign and risk the amount of return they will receive, so that whatever step the Butter Committee may take, it will only affect a portion of the dairy ies. With the increased priee of land, stock, labor, and other incidentals, it is only reasonable for producers to anticipate higher prices, and there appears to be no doubt they will obtain appreciable increases.