“THE BIGGEST FIASCO”

Wairarapa Age, 11 March 1927, Page 7

“THE BIGGEST FIASCO”

BUTTER IN HOME MARKET. A TRADE OPINION. HOSTILITY TO CONTROL BOARD. LONDON, March 9. “The New Zealand DairyBoard’s control policy has resulted in the biggest fiasco ever known in trading circles,” said a prominent market authority. “It will have catastrophic economic consequences on one of New Zealand’s basic industries. What Mr. Coates foretold in his cabled warning in November has now happened.” “If New Zealand producers had acted on Mr. Coates’s advice instead of attacking him politically for pointing out the unwisdom, of the board’s policy,” the same authority added, “they would now have been in a happier position. “The ,sooner producers face the crisis, the sooner they will amend the board’s policy. “It is estimated that producers are likely to lose £2,000,000 this Beason, and it will take two to three years to recover the position they held here prior to control. “New Zealand methods have antagonised the whele provision trade.” COMPARISON WITH AUSTRALIA. The authority added, that the Australian DairyJßoard drew up a scheme for the co-operation of traders, a scheme which has worked harmoniously; whereas New Zealand 1 drew up “its own academic scheme,” and imposed it upon the trade, regardless of its impracticability. The contrast of these two schemes is shown by the fact that Australian stocks ofxbutter were cleared as they arrived, but New Zealand has sold only some 10,000 tons out of 60,000 tons destined for the British market. Presently there will be 10,000 tons Stored in Great Britain, including a portion of the December arrivals. The alarming thing about it all is that with four of the best selling meaths already gone, New Zealand still has 85 per cent, of her stocks on hand. This will meet with the keenest competition from spurccs of supply in the Northern Hemisphere, when the springoutput of butter comes into the market and when prices will be very low. AN IMPASSE. The authority continued:— “The impasse is due firstly to the board’s holding policy, keeping limits above sales’ points; secondly, to the strong antagonism of wholesalers and retailers to the price fixation of the board, which dictated to traders instead of co-operating with them.

“The board gambled for a rise, thus it is virtually guilty of the same speculation of -which is formerly criticised traders.

“Wholesalers and retailers have refrained from buying except when forced to do so, because the fixed prices were unprofitable. Similarly wholesalers refused to handle New Zealand butter because they paid the same price for large quantities as for a few boxes. “Traders sympathise with the board’s original intention to secure continuity of supplies; but the policy was overdone, and it has failed.

“Some producers are likely t.o be faced with substantial claims on account of over advances against supplies. ’ ’ TRADERS AND PRODUCERS.

According to the same authority, traders have realised that producers had the right to determine how their produce should be sold, but they decided to test the scheme, hoping that defects would be remedied.

The board promised that the goods would be cleared as they arrived; but that promise has not been kept. On the contrary, the Australian policy has steadied the market and has gained the sympathy of importers; also the Australian Board carefully estimates prices according to stock statistics and market conditions and prospects. The Australian Board’s actions are based upon reciprocal information between the board and the traders. The New Zealand Board adopted a dictatorial attitude which the British traders will not stand. A leading importer asserts that Mr. Coates, when in London, was assured that the board would meet the market’s wishes; instead of which its policy has been speculative.—(Sydney “Sun.”) DAIRY BOARD TO MEET. The Dairy Produce Board will hold a special meeting in Wellington on Saturday morning to consider the whole question of the present situation in regard to dairy produce on the London market.