THE BUTTER CRISIS.

Taranaki Daily News, 30 December 1921, Page 8

THE BUTTER CRISIS.

GOVERNMENT PUSHING INQUIRIES. PROBLEM OF THE OLD STOCKS. : The butter situation apparently will not develop until after the holidays. The Imperial authorities, as already announced, have agreed to postpone the forced realisation of their stocks of New Zealand and Australian butter, amounting to some 2*2,000 tons, and in the meantime the New Zealand Government is making inquiries concerning this butter. The Australian Government also is seeking ini.u niation. The postponement is merely temporary as far as the Imperial authorities are concerned, and if anything is to be done from this end the New Zealand Government and the Australian Government will require to act together. The old butter comprises about 8000 tons New Zealand and 14,000 tons Australian. The withholding nf the New Zealand stock from sale would not help the market much if the Australian butter were sold at 84s a cwt., the price already mentioned. Representatives of the dairying industry are watching the situation closely and have been in commu fication with the Governmet. It appears that they are not unanimous in believing that the repurchase of this old butter by the New Zealand and Australian Governments would be a wise step, unless arrangements could be made to sell the stocks outside the British market. Much depends upon the actual condition of the butter, and on this point definite information is lacking. The mere presence of the old butter in the cool stores has a depressing effect upon the market. Experts point out that if the two Governments bought it and then held it in Britain while the new season’s butter was sold, they would have it on their hands when the European season of high production was at hand. The old butter in the meantime would hax'e undergone further deterioration and the Government would stand to make a heavy loss. It has to be remembered, moreover, that while New Zealand and Australia were holding up the market the producers of other countries would be sharing the benefit without accepting any part of the cost.

“We shall be in trouble until the old butter has gone into consumption,” said an authority recently. “How best to get it into consumption speedily axtd •with the smallest possible depression of the market is a matter for consideration. The sale of badly deteriorated butter at a low price would not necessarily prevent us getting a reasonable price for our new butter, since the difference in quality would be very marked. But much of the old butter may be in fairly good condition. It seems to me that before we talk of buying back this butter we should decide what we propose to do with it. Merely to hold it in the British market would be to keep our trouble with .us.”