DAIRY PRODUCE

Ashburton Guardian, Volume 56, Issue 62, 24 December 1935, Page 3

DAIRY PRODUCE

MARKETING IN BRITAIN. RECIPROCAL. TRAiDE NEEDED. (Special to the “ Guardian.”) CHRISTCHURCH, Gee. 28. The need for New Zealand to pinchase as much of England s manufactured goods as possible m order to help to create a market theie foi Dominion’s dairy and Elll _ al produce was stressed by Air R. U son (managing director of the Zealand Produce Association m Lo don) in an interview. Mr Ellison has just arrived from London, wheie he has been for more than 2o yea , though he has paid a few visits New Zealand during that .time, the last of which was six years ago. _ i discussing the position m , referred to the difficulty which the industrial north of England stiU fou d in securing markets for its goods and Se consequent lack of purchasnng power. • “Though there has been an improvement in sections of the north, he said,, “nevertheless the outlook i not such that one can look for .Permanent improvement. This natui ally involves the problem of trade with the Dominions. A few decades ago England was exporting goods to au parts of the world, and thought that there would always he room for them everywhere. That state of affan's has entirely altered and it was found that the export market of the United Kingdom, especially for manufactured goods, had more or less reached saturation point. The inability to expoit naturally reflected itself in the volume of imports. This means that a Dornm ion such as ours should confine itself as far as is humanly possible to the use of British manufactured articles, SL we look to Britain to prov.de an outlet for the primary products o this- country. This- seems obvious, but people are inclined to forget it. Britain the Only Market. “At present all the other markets in the world are practically closed to New Zealand’s goods. They are closed in the United States and; Canada because of the desire to protect their own primary producers. The prospectof new markets is at present vciy nebulous. Before anything can be done in the far East the people will have to be taught to eat new kinds of food. Even if this were done the} have not the means to purchase our goods; people who live on rice are very far from being purchasers of dairy produce, even at the unfortunately low level of prices existing to-day. In England the standard of living of the working class could be raised, and this would reflect itself in an increased demand for the goods produced m the Dominion. From those to whom we wish to sell we should be prepared to buy.” Mr Ellison said that when secondary industries had grown up in the Dominion it had not been foreseen that saturation point might be reached in the United Kingdom for the country’s primary products. The secondary industries in New Zealand should not be interfered with, but they should not be increased to the disadvantage of the export of primary products. If New Zealand had free trade everyone could live more cheaply, though this was a problem for the country itsell. Referring to his impressions of New Zealand he said that like all countries in which one moved about it showed surface signs of fair prosperity among the- people. He knew, however, that the low prices had put the dairy farmers and other producers in extreme difficulty. The Dominion should not lose sight of the necessity of giving sufficient protection, and encouragement to the dairy industry. H this industry was not maintained all the other sections of the community would suffer. The towns depended for their prosperity on it and otlier forms of primary industry, and should assist them directly or indirectly. “•It cannot be disputed,” said_ Air Ellison, “that New Zealand .holds first place among the Dominions in the esteem of the average Englishman. They believe in New Zealand. In these difficult times it is essential that goodwill should exist among the various units of the Empire.” Speaking of the work of the Dairy Board, Air Ellison said: “Anyone knowing even a little of the difficulties being met by the dairy ihdustry must of necessity know that the Dairy Board is facing hard work and difficult problems, but with goodwill both in the Dominion and in London, there is no reason why the Board should not be able eventually to help the industry materially. Importers and merchants in England who are interested in the New Zealand dairy industry are only too willing to co-operate. Moreover, the Dominion and the Dairy Board are to be .congratulated that their London management is in such capable hands. The Board is new, and the country has a new Government, but there is genuine wish to help in England. Agricultural Subsidy ira England. “The dairying industry in the United Kingdom,” lie said, “is encouraged to a much greater extent than is usually supposed. «A Milk Alarketing Board has been established, and the production of milk is subsidised. If this is continued it is indicated that there is a possibility of a very extensive increase in dairy production. The farming industry in the United Kingdom has had its difficulties, and in addition to the handicaps of climaticconditions it has also had to contend with competition from the import of dairy produce from foreign countries and the Dominions.

“The duties now being imposed •on these imports from foreign countries are being used to create a fund with which to subsidise the home agricultural industries. Potatoes, wheat, hops, and sugar beet are among the produce subsidised. The sugar beet industry, for instance, has already cost the nation more than £50,000,000, and with the other existing subsidies the total amount reaches a considerable slim.”