The Daily News. SATURDAY, JANUARY 7, 1922. BUTTER CONTROL.

Taranaki Daily News, 7 January 1922, Page 4

The Daily News. SATURDAY, JANUARY 7, 1922. BUTTER CONTROL.

To the primary producers of the Dominion the market prices of their commodities is a subject of far greater importance than anything else, so that the result of the conference of representatives of butter producers at Wellington on Thursday was awaited with the keenest interest. The main question for decision was what action shojild be taken in relation to the intention of the Imperial Government to dispose of the remainder of the butter accumulated during the commandeer. Obviously, to place on a weak and rapidly falling market 310,000 boxes of New Zealand butter at one hundred shillings per cwt., and 560,000 boxes of Australian at eighty-four shillings, would cause such havoc in prices as to mean disaster to the producers in connection with the present season’s supplies, and possibly affect the market adversely for some time to come. Since December 17 the price of butter on the London market has fallen from 150s--156s to 110s-120s, so that a sale to a speculator of the stocks held by the Imperial Government at prices considerably below these prices might precipitate a crisis of some magnitude. So the proposal was made that the producers should take over the butter, pool it, and regulate the supply to the market from time to time. As a matter of principle that course is unsound, but as a matter of expediency it may be justified. Thursday’s meeting favored that course. The effect of this decision is that the old stock which is to be purchased will, with the present season’s output (which is phenomenally large) will be pooled and controlled by a committee representing both the producers and the Tooley Street merchants, the market being supplied according to requirements. The object in view is to obtain a price

that, will prevent the producers incurring a loss over this and subsequent seasons’ output. The Australian producers have decided upon taking similar action. In both eases a Government guarantee is asked for payment, and while there is not likely to be any diffieillty on this head as regards New Zealand, the Federal Premier is personally averse to giving a guarantee, as he considers that if dairymen want eighte’enpenee per lb. for their butter they will not get it by the device suggested. There is no risk attaching to this Government guarantee, inasmuch as the producers, while sharing pro rata any profits on the reSale, will be liable for any loss, the latter being recouped by a pro rata levy on them on a basis of this season’s output. The fact that, there is an improved demand for butter in Britain now that the price has so materially fallen shows that the purchasing power of the people has been, great!. 5’ curtailed, but. that immediately needed commodities came within their reach they are obtained. At the same time the producers must. understand that although they may control the quantity of butter supplied to the market, yet they cannot control the ruling price,: though the committee may decide to hold the produce in store sooner than sell below a price that will pay. If the latter course is taken it will tend to ‘accumulate stocks and aameaaas, so .that every

effort should be made to dispose of supplies so as to leave the market favorable for next season’s produce. Everyone must deplore the mismanagement of the Imperial authorities in extending the rationing system far beyond the time when it should have been abolished. The British public has been forced to learn selfrestraint and economy to such an extent that it has taken root, having been stimulated by high prices. Nothing but the vitalising of industries will restore normal conditions, so that any action taken to protect the overseas meat and butter producers must be more or less experimental, and while hoping for the best they must not be too sanguine of getting through without a temporary loss.