BUTTER SURPLUS.

Auckland Star, Volume LIII, Issue 4, 6 January 1922, Page 8

BUTTER SURPLUS.

t>EA_IN<J 'WITH THE STOCKS. PRODUCERS TO HE-PURCHASE. POOLED WITH XEW f?UPPLEES. A GOVERNMENT GUARANTEE. (By Telegraph.—Press Association.) WI&LLINGTOX, Thursday. The critical situation which has aj-isen in the dairying industry on account of the low prices for butter ruling in England waa the subjejet of an important conference of representatives of the dairy factories and producers held today. The business of the meeting was to consider tlie offer made by the Imperial tjovernment to sell back to the producers its accumulated stocks. These amount to 310.00U boxes of New Zealand butter ami 560,000 boxes of Australian. The prices ollered are 100/ per cwt. and 84/ per ewt. respectively. The Australian producers sat in conference at Melbourne on Wednesday, and decided to purchase, with the assistance ••f their Government, their portion of the accumulation. They have since submitted proposals to the Commonwealth liovermnent, and the result is awaited with interest.

Tbe result of the proceedings, which lasted all day, was that the producers ileeicted that it would be in the best interests of the indusiry tp purchase the New. Zealand butter from the Imperial Government at the price named, to pool il, tpgether with this season's production,, placing it under the control of a c uminittee representative of their own interests and of Tooley Street merchants. It was decided to place on the mar&t only sufficient butter to meet the demand from time to time. The l-c-saie of the purchased butter will be conducted under tlie supervision of the committee. Any profits arising therefrom will be distributed among the producers pro rata. Should a loss be sustained in the sale, it will be defrayed by a pro rata levy, on the producers on the basis of this season's output. rXSRaKJ-ATENTS DETAILS. Tlie Govei7i_lent will be asked to assist, together with tbe importers, by way', of guaranteeing payment, and in the event of loss the Government will have' recourse to the producers. A representative committee was set up consisting of T. Bassett, C. Motion, A. J. Sinclair (Auckland), ./. Brovyn and A. Morton (Taranaki), E. tfroa'dlielt and J. C. Ewington (Wellingto bring the matter before the Government and formulate details in the event of the purchase' being effected and the scheme put into" operation: The committee' held o meeting to-night, when matters of organisation were discussed. The chairman, at the conclusion of the meeting, Stated that the'_nperial Government had originally fixed Janu-ry 7 ;is the date up to which the Commonwealth and Dominion producers might malce the purchases. A cablegram received that day, however, from the High Commissioner intimated that ttie' Imperial authorities had extended the' time until January I' 4. According to inforni'ation received by tile 'Gbvertanent' the first proposal of the Imperial Government was to sell the butler to an outside- firm. In .the interests of the dairying industry, however, it had been considered highly inadvisable to do so as the operations of the firm in question might result in disaster to the' industry through prices for the remaining part of the year 'being- brought down to a lower level. It was to prevent the possibility of such a thing happening that the proposal was made t_at the producers' themselves should repurchase their butter from the Imperial Government. '~

BETTER DEMAND IN LONDON. During the meeting, remarked Mr. .Morton", a' much more reassuring cablegtaim was received from London in regard to the state of the Home market. The demand for butter 'had evidently increased largely owing to tSie lower price at which it had lately been retailed to the < consumers: The present position had been occasioned in'the first place fay the' policy of the Imperial Government in continuing the rationing of the British public for a much longer period Mian "Was necessary. This- hod been accentuated by the largely increased' production in all the butter manufacturing countries during the present season. The production; in New Zealand at the present time was phenomenal. This- was principally due to toe very favourable climatic conditions being experienced. OFFICIAL QUOTATION. In a. cablegram dated December 30, the.High Commissioner deals with the London butter and cheese markets as follows: — Butter.—Position is very little altered, and prices are nominally unchanged. Official quotations, the figures for the previous week being given in pnrenthespf, are:— Xew Zealand, 120/ to 130/ perwt. (140/ to 145/): Australian, saltid 100/ to 10.1/ (118/ to 124/); unb aH»d, 114/ to 118/ (130/ to 136/); Argentine, unsalted 100/ to 108/ (120/ to 123*;; Danish, 154/ to 158/ (174/ to 176/f..' Cheese.—Market is very quiet. Official quotations are: —English, finest farmers' 135/ to 140/ (140/ to 145/); Canadian, white 96/ to 100/ (100/ to 104/); coloured 92/ to 100/ (98/ to 102/); Xew Zealand, 8(i/ to 90/.