MARKETING BUTTER

Ashburton Guardian, Volume 55, Issue 166, 27 April 1935, Page 7

MARKETING BUTTER

THE SYSTEM IN BRITAIN.

PROMISE OF GREAT SUCCESS.

THE RELATION OF PRICES,

(Written for the "Guardian" by

Investor.)

A brief cable message from London, published toward the end of last week, stated that the scheme for tho national marketing of butter, which had been in operation for two months, promised to be most successful. The immediate objective is to increase the consumption of home produced butter in Britain from its present volume of 10 per cent, to 30 and possible 50 per cent. This constitutes one phase of a movement at Home that is of the utmost importance to New Zealand, in that the success of the efforts that are now being made must necessarily restrict very materially the demand for. those commodities which New Zealand sells to the Homeland. The effort covers the entire agricultural field, and is one of the more iniportant steps that have been adopted in the interests of British agriculture. Until recent years, according to the monthly review of the Midland Bank, the urban population of Great Britain has taken little more than a recreational or sentimental interest in . British agriculture. This., it is stated, is no longer true, arid it has become more and more widely recogr nised that a successful farming, industry is an essential part of the economic prosperity even of a country so far advanced in industrial development as Britain.

Facilities for the organised marketing of agricultural produce were first contained in the Agricultural Marketing Act of 1931. Under this legislation marketing schemes might be drawn up by producers themselves or iby "reorganisation commissions'' appointed by the Government, and ,subject to the approval of Parliament, could be imposed on all producers of specified agricultural ' products if a substantial majority accepted the proposals. This measure, however, provided no protection for the farmer from what evqn then had become an acute cause of complaint, the unrestricted entry of relatively low-priced and cheapening imports. In consequence, little advantage was taken of the Act. •

A Form of Proteption. In order to hasten progress, a further Agricultural Marketing Act was passed in 1933. This time an attempt was made to co-ordinate the establishment of marketing schemes with quantitative regulation of imports. The availability of this form of protection was made the incentive for speedier progress toward more efficient marketing. Provision was also made for regulating the production and marketing of secondary products of any commodities that might be themselves controlled. In all, there are six marketing schemes now in force, and four of these have resulted from Government action in the form of the appointment of reorganisation commissions.

While it is yet too early to form any estimate of the ultimate effects of the marketing schemes there is no evidence that enhanced prices have followed the adoption of the measures. The following table shows the movement in the prices of the commodities named, some of which are subject to the schemes:—

*Year in which marketing scheme was inaugurated.

From the last line in the table it appears that the decline in the general average has now been arrested. There is, however, no marked distinction in the experience of those products subject to marketing schemes and those in which marketing is still free. The working of the various plans has been attended by many difficulties, while inequalities between different regions and different classes of producers have inevitably arisen. Difficulties appertaining to administrative control, the availability of alternative markets, the relative weight of imports and domestic supplies and the effects of changes in price on consumption are difficulties that are common to all, but in addition there have been particular difficulties peculiar to each of the schemes.

Other Schemes Proposed. Apart from those ahead}' in operation, proposals are being considered for organised marketing; arrangements for fat stock, while unofficial plans are reported to be nearing conclusion in respect of fruit, and a scheme has been instituted for Scottish raspberry growers. As the Ministry! of Agriculture at Home also includes fisheries a scheme is being prepared for the marketing of herrings, and is to come in£o force at the opening of the season this year. Not all the schemes apply to the same area. The schemes for bacon and potatoes cover Great Britain; the hops scheme England and Wales, while in milk, separate boards, largely independent, apply to England and Wales and to Scotland. As regards eggs and poultry a separate commission has reported for Scotland. The movement, it will be seen, is very comprehensive, and is tending more and more to bring the whole of British agriculture within its scope. The success that attends the efforts is a matter of the first moment for this country. So far, little l if any success is indicated in the matter of prices, but these will follow if greater volume is attained, and imports will diminish correspondingly.

Yearly averages, 1911-13 equals 100. 1929. 1932. 1933. 1934. Hops 51 105* 176 Ill Milk 169 144 150* 163 Butter 152 102 94 87 Qneese 158 127 111 103 Baconers 160. 91 102* 112 Porkers 165 98 109 120 Potatoes 117 197 104 119* General index of agricultural prices 144 112 107 114