OUTPUT OFFERED TO THE GOVERNMENT

Evening Post, Volume XCIV, Issue 47, 24 August 1917, Page 8

OUTPUT OFFERED TO THE GOVERNMENT

INFLUENCE OF LONDON VALUES,

"Still unsettled" was the reply, .to a question put by The Post this afternoon to the National Dairy Association with reference to the disposal of the new season's butter output. The whole matter at the moment hangs in the balance, and this after a meeting of factory representatives with the Minister this forenoon. A conference was held yesterday with the Prime Minister, and it is understood that [ ,the factories offered to sell all the butter to the Government at 17d per pound, the responsibility of' getting the butter to market remaining with the Government. The Government, is it understood, was prepared to pay, 16d per pound, so as to secure sufficient supplies for the local market at a reasonable price to 1 retail at, say, Is 7d to Is 8d per pound; the balance for export to be sold in London or elsewhere at the high rates ruling, going through the usual channels, of distribution ; and the whole of the trading, local and export, to be so pooled as to obviate any sacrifice on the part of the factories supplying the local trade. TO OBVIATE THE LEVY. The Government in "its endeavour last season collected a levy ,on the quantity of butter fat from: milk manufactured into cheese a-nd butter for export, and with the proceeds' reimbursed such : factories as supplied the local butter market, so as to bring all on a parity as to the value of the commodity based on London market. The levy was obnoxious to those who did a- solely export trade. • It was imposed in order to obviate the-possibility of the local price going up to as high as 2s per pound, which prices would have been warranted by London values! In the opinion of the head of a large exporting house, the solution of the butter problem is not even now beyond the Government., , The Government could have offered farmers 18d per pound for their butter /for 1 the whole output. Of this twjo'-thirds could be exported, and the remainder would be sufficient to meet the local requirements. The Government could then sell .to various local, packing houses or to factories for putting up in the familiar one-pound blocks, at, say, 17d per pound, and the wholesalers could sell to retailers at 18d per pound, in pats, to be handed over the connter at Is 8d ,per pound. 'The profits on the .shipments to London would almoet certainly more than cover any loss on local sales. Such a method would have the merit of simplicity, and give to fanners a full and fair return for their produce. . . BUTTER AND SHIPS. Some time ago reports were circulated in Sydney, and the statement was made in public at a deputation to the State Minister concerned with butter 'problems in New South Wales, that offers had been received from New Zealand, to sell at Is per lb. wholesale. Every' endeavour was made at this end to obtain verification of that statement, but it has never yet 'been confirmed. Sales were made, however/at 13d and 14d per pound, but the quantities may not have been large, arid in the Wellington district sales at 15d and 16d were reported. At that time prospects of export were very doubtful. As soon as they began to improve there was a steady demand for butter for export at prices ranging from 17d to 18d.' Now, as much as 19jd has been paid, and business even at 19§d is reported, the terms in each recent case being cash against store warrants —practically cash down — and' the buyer takes the risk of shipment. At London current rates, and with the northern winter beginning, its it -nill by the time the butter reaches Home, the present high rates being paid for butter for export are fully justified^; but in the event of any reduction, in values, which seems highly improbable, those who are buying now at these fancy rate 3 would drop many thousands of pounds.