THE BUTTER MARKET.

Taranaki Daily News, 28 December 1921, Page 4

THE BUTTER MARKET.

The latest cable advice that the scheme for the forced sale of the surplus butter at Home is not likely to materialise will be welcomed by the people of New Zealand, particulraly dairymen, who were threatened with a total collapse of the butter market. The idea seems to be that the colonial Governments should buy the Imperial Government’s stocks at the prices at which it was proposed to put them on the market, and dispose of the stocks in. the autumn. No one likes the holding up of the market by artificial means of this nature, but it was the. action of the Home Government in the first place that brought about the present. congestion and trouble. They retained the rationing system longer than it was necessary, and then kept up prices to a prohibitive level, forcing the public to purchase margarine. The coal strike and the consequent industrial dislocation followed, and then the Home authorities commenced to unload, with unfortunate results for the colonial producer The losses both to the Home Government and the colonial producers could have been averted had the advice of such men as Sir Thomas Mackenzie been heeded. They foresaw what would happen, and strongly opposed the Home Government's policy. The experience does not redound to the credit of the authorities, who seem to have become

quite “panicky” over the matter. The . fact is again exemplified that the less Governments interfere in matters of trade the better it is for both producer and consumer,, but, having interfered in the butter trade, further Government action is necessary, unless the colonial producer is to be totally ruined. Butter at less, than a shilling a pound on the London market is ruinous—it does not nearly cover the cost of production. The position in respect to cheese is better, and the advice given to factories recently by the Premier to turn over to cheesemaking instead of butter is quite justified. Statistics show that the Canadian exports to Britain are steadily decreasing, due to the increasing population of Canada and the proximity of the United States market, whilst those of New Zealand are steadily increasing, and the conclusion is justified that in a few years New Zealand will be the only country exporting cheddar cheese in any quantity to England. It reaches England at the right tiqie, namely, in winter, and remunerative prices for the produce are practically assured. Just now England is passing through the worst financial and economic crisis on record, and it may be taken for granted that prices for both cheese and butter are at bedrock. The prices for the latter, of course, do rot represent fair or economic values, being due to avoidable causes referred to above, but, all the same, with margarine obtaining such a hold upon the workers of England, and the substantial annual decrease in Canadian cheese, it is clear that butter is not so good- a proposition as cheese, and it would be well for New Zealand dairymen to concentrate upon the more attractive product without delay.