THE SALE OF BUTTER

Taranaki Daily News, 25 October 1920, Page 5

THE SALE OF BUTTER

HOME GOVERNMENT'S TERMS. FURTHER CONCESSIONS MADE. The sale of New Zealand butter to the Imperial Government is the subject of a further communications from the Secretary for the Colonies, who cables: ''The Imperial Government notifies its willingness to accept butter from those factories which are prepared to sell upon the terms of the existing offer and that, in order that factories shall put themselves in a position of selling to the Imperial Government, they must notify their acceptance, before the end of December. Any factory not notifying its acceptance of the Government terms before the end of December will be precluded from afterwards coming in." Mr. Morton, president of the National Dairy Association, explains that the Imperial Government has conceded the point asked for by the producers in regard to increased storage to bq paid by the Imperial Government, and the position now is that the Imperial authorities will pay for all storage after the first six weeks. They were also asked to put New Zealand producers on the same basis as Australia in regard to grade points, namely to increase the price paid by Is lid for every point over 88, but this request has been declined. The position now, therefore, is that, to those factories which choose to sell to the Imperial Government, an opportunity is offered, the price being 2SOs f.0.b., storage to be provided by the factory for the first six weeks and afterwards to be paid by the Imperial Government.

The practice in regard to space for shipping will be as in the past. It will be provided by the Imperial Government, but any factories declining to accept the offer will have to make their own arrangements in regard to shipping to whatever markets they may be able to find.

The contract also stipulates that the price for whey butter, dairy butter, and milled butter shall be arrived at by deducting from the first grade creamery price the same amount per lb. as was deducted under the last contract.

In regard to the matter of a free market at the termination of the contract at March 31 next, the Imperial Government says that it cannot so far ahead give an unqualified guarantee, but the Food Controller repeats the assurance given in previous telegrams and hopes to be able by the end of January to make a definite announcement. Further, in regard to this question, one of the leading firms importing dairy produce has cabled to its representatives in New Zealand to the effect that they have reason to believe the Imperial Government intend, if possible, to free New Zealand butter after March HI, but that in their opinion it is useless for shippers to demand a positive guarantee at the present- time.

Regarding the attitude taken up by the Auckland factories, which have so far declined to fall in with the remainder of the Dominion in negotiating the sale to the Imperial Government on the terms offered by the Food Controller, Mr. Morton explains that the North Auckland district factories have now arrived at a decision to fall in with the producers in oilier parts, so that the only factories now standing out are those in the Waikato district.