The Daily News. SATURDAY, DECEMBER 18, 1920. FREIGHTS FOR DAIRY PRODUCE.

Taranaki Daily News, 18 December 1920, Page 4

The Daily News. SATURDAY, DECEMBER 18, 1920. FREIGHTS FOR DAIRY PRODUCE.

In the light of the cable message received by the Premier on Thursday from the High Commissioner, it would appear that Sir James Allen is doing his best to obtain a reduction by the shipping companies of their proposed freight for cheese. That tke transport of dairy produce overseas is a very profitable business cannot be disputed, and that the shipping companies have made handsome profits by moans of the high freights charged during the last few years is evident. During the period of the commandeer these freights were discharged by the Imperial Government, who also controlled the shipping space. The cessation of the commandeer throws the cost of transit on the producers,

Some market lias appreciably I fallen, the producers would naturally feel all the more acutely any increase in freights since they supplied a free market. Apparently this aspect of the question has been made the subject of strong representations to the British Ministry of Food and the Tonnage Committee. The latter body speedily refuted the contention that because the value of cheese had fallen there should be a corresponding reduction in freights, with good reason —that the' chief factor in determining the rate of freights must be the cost of conveyance. In this connection it was asserted that steamers* now cost nearly four times as much to build and three times as much to run, as compared with pre-war prices, so that the increase in freights was less than proportionate with the altered conditions. Admitting this, yet in view of the huge profits made of late there appears to be plenty of room for a reduction in freights. In freights for dairy produce, where the amount charged is so much per lb -weight, fractious make a very considerable difference in the aggregate amount paid for the transit of a season's output. The amount of cheese exported by the Dominion in 1919 totalled 176,098,8221b5, which at one penny per lb would make the total for freight close upon £734,000. The result of the negotiations by the High Commissioner is that the shipowners suggest a rate of fifteen-sixteenths of a penny per lb, plus ten per cent., which, it is claimed, amoiints to a concession of over £123,000. Mr. Massey thinks it is just possible that a further slight reduction may be made, and if so the producers will benefit; so it would seem they will obtain some relief consequent on the action of the Government and Sir James Allen. Possibly this question of high freights may bring home to the producers the desirability of having their own transport service, and not being subject to exploitation by the shipping owners. It is the missing link in the chain of co-operation that has proved of such enormous benefit to the dairying industry. At the same time, it must be acknowledged that the difficulties in the way just now are pretty considerable. The high prices of land, stock, farm requisites, labor and necessary commodities, as well as the heavy rates and taxes,, are being felt acutely. In the near future, when Europe settles down to normality, competition will be keener and prices of produce probably lower, while the indications are that money will be scarcer and dearer; so that every fraction more or less in the nett yield of their produce will appreciably affect their prosperity. There is this to be said, however: Owing to the downward trend of prices, cheese is being manufactured less and less. In Taranaki nearly all those factories equipped with dual plants which have not sold outright their cheese outputs have turned over, or are turning over, to butter, which, of course, occupies less refrigerated space on the boats than cheese. All things considered, this province is particularly favorably situated to stand the stress of the financial tightness that is now in evidence. It is enjoying record prices for its butter, and payable prices for its cheese. The indications are that the prices for butter will remain remunerative, if not at their present high level, for some years to come. The only fly in the ointment is the tremendous prices some farmers have paid—or have agreed to pay—for their places, and the difficulties they will meet with when they come to refinance their mortgages. Otherwise the province has nothing to fear directly, though indirectly the loss occasioned by other parts in connection with the dead wool market, and the poorness of prices for meat, is being reflected in the action of the financial institutions in suddenly restricting credits all round—in some cases unduly. Far better had the curtailment started eighteen months ago, and been applied gradually.