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Auckland Star, Volume LXIV, Issue 70, 24 March 1933, Page 6

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Two items in current news relating to the business by which this country lives call for comment. Mr. Goodfellow, in an address to the Auckland Chamber of Commerce yesterday, discussed our obligations under the Ottawa Agreement, prospects of finding other markets for our dairy produce, and the need for improvement in quality and' marketing , . Mr. Coates writes to the Chamber contradicting the suggestion that the idea of restriction on the English market is a form of reprisal for our exchange policy. In his vigorous denial Mr. Coates quotes the High Commissioner as saying that there is no connection between the restriction and the exchange rate. It is certain, however, that the raising of the rate, unaccompanied by a reduction in the tariff, has caused resentment in Britain, and may affect our trade in other ways. In one export line from England to New Zealand the English merchants concerned shouldered a portion of the 10 per cent exchange rate. When the rate was raised to 25 per cent they refused to assist at all. English advices contain other protests against our policy. Mr. Goodfellow's reiteration of certain extremely important facts about Ottawa was clear and forceful. We have promised to do certain things in return for Britain's preference, we shall enjoy this preference for a fixed period, and at the end of that "Britain reserves the right to tax our food and limit the amount going into the United Kingdom." It is vital that the position should be thoroughly well understood here. Mr. Goodfellow does not think there is any substantial market outside Britain for our dairy produce, and he adduced weighty evidence in support of his contention. Much has been said about the possibility of Eastern markets; but there are two obstacles in the Ayay of development of our trade there. One is the low standard of living general among the East's teeming millions, and the other the advantage Australia has in her closeness to these markets. Our main hope for better trade lies in the improvement of general worlfl conditions. A more prosperous Europe might take more of our goods, but what is more important is its ability to absorb surpluses that now go to Britain and compete with us there. While we are hoping and waiting for this to happen it is imperative that we should make every effort to improve our quality. Mr. Goodfellow referred to the room for improvement in our cheese. It is universally admitted that the room is large. The subject has been discussed freely, we have had experts working on it, and the main defects and remedies are known. The other day a correspondent in the business set out a list of bad practices and showed how some could be countered by existing regulations. These are being added to by the Department of Agriculture, so that the industry should soon have a code of rules sufficient for all purposes. It will then lie with the industry to apply these. Be they ever so active and wellequipped, all the officials that the country can muster will not be able to bring our cheese up to the required standard if they are. not backed by co-operation in factory and farm.