QUITTING OLD STOCKS.

Taranaki Daily News, 24 December 1921, Page 5

QUITTING OLD STOCKS.

A WAIKATO OPINION. EFFORTS TO FIND REMEDY. Hamilton. Dec. 21. Discussing the dairying situation, the secretary of the New Zealand Go-opera-tive Dairy Company, Mr. T. L. Hames, stated to-day that the serious position had arisen owing to the desire of the Imperial Government to quit the whole of its stocks. If the remaining Government butter was forced on to the market at one time the immediate effect could not but be disastrous. i\lr. Goodfellow had cabled that endeavors were being made by representatives of the New Zealand and Australian producers now in London to formulate a scheme to prevent any further slump. The matter, said Mr. Hames, was also being dealt with at this end, while consideration was being given to it by the Australian and New Zealand Governments with a view to cooperating with the producers so as to prevent the disposal of Imperial Government stocks in such a way as to completely break the market. No doubt the New Zealand Government would give the most careful consideration to the matter, while Mr. Goodfellow and others were doing their utmost at tne other end. It was hoped that some satisfactory arrangement would be made in the near future, and in all probability a conference of butter producers would be held in the Dominion early in the New Year.

Mr. Hames mentioned that the Imperial Government now held over 20,000 tons of butter, nearly half of which, he understood., was New Zealand made. Were this of good quality and fresh, it would not take the market long to absorb it at reasonable prices. Much of it, however, was stale, and it was even reported that some of it was unfit for consumption. Consequently the old stocks had been moving very slowly since fresh butter began to be available. This had apparently led the Imperial Government to endeavor to quit the whole of its stocks on the market. If that menace could be removed by the sale of a substantial quantity to the Continent the butter outlook would be much improved immediately. In spite of bad trade conditions and the general depression in England new butter would no doubt retain fair prices, especially for best, quality, such as New Zealand superfine, than which there was no finer entering the London mar-

Discussing advance payments for December. Mr. frames said nothing definite could be said regarding these at the present time. The position was critical, and unless there was an improved tone in the market some temporary reduction in advances on butterfat might be necessary. At the same time his opinion was that if the present difficulty could be overcome the butter market should be fairly satisfactory, with a return to normal conditions.