MARKETING OF FOOD

Press, Volume LXXXV, Issue 25903, 8 September 1949, Page 4

MARKETING OF FOOD

< Joint Organisation Suggested

MR HOLYOAKE’S SCHEME

(New Zealand Press Association.) WELLINGTON, September V. Art international organisation With power to buy produce and divert it from overloaded markets, on the lines of the Joint Organisation that has operated in the disposal of wool stocks, was urged by the Deputy-Leader of the Opposition, Mr K. J. Hoiyoake (Pahiatua), when he spoke in the Budget debate in the House of Representatives this Evening. Mr Hoiyoake said food production was still world priority No. 1, as there was a world shortage, unlimited demand, and high prices. Would those conditions continue indefinitely? The Government’s only remedy, stabilisation within New Zealand, was not enough. The amber light, if not already the red light, warned that present prices could not Remain for ever, and New Zealand must plan well ahead for the production and marketing of primary produce. The first essential was to plan for the greatest possible freedom for the farmer, as this was the surest way of getting maximum production. There must be the greatest possible freedom in international trade. To minimise the risk of a fall in prices, all producing countries should try to regulate the seasonal flow of their produce and reasonable provision should be made to prevent the dumping of food surpluses. History showed that even small surpluses could break prices. Quotas “Confession of Failure” Quantitative restrictions as practised in the past were suicidal and were a confession of failure. A solution might lie in an extension of the procedure developed successfully by the Joint Wool Disposal Organisation, without which there would have been a breakdown in Wool prices and chaos in the world markets.

“I would suggest to the Government it should turn its attention to this problem and seek to have set up an international organisation with the necessary funds to purchase and divert produce from overloaded markets.” said Mr Hoiyoake. Such an organisation would not operate all the time but only become active when surpluses occurred or threatened. Such an organisation would have to survey constantly the actual and potential output of food-producing countries and the actual and potential demand of consumer countries and to disseminate that information to the advantage of all.

A nucleus of the organisation might lie in the Food and Agricultural Organisation already established. Confidence for Producers

Mr Hoiyoake said that, if commodity surpluses were considered only seasonal, produce could be held in store and unloaded at the appropriate time. Producers in all countries should be given confidence that there were everexpanding markets, even if that involved temporarily selling below cost to establish new markets.

Such an organisation would help New Zealand to expand production and would be the least disturbing to existing trade practices. It would cost money, but New Zealand should seek to have determined now by negotiation between interested countries what proportions of the cost would be borne by each. New Zealand should be building up funds now to meet the emergency when it arose.

The organisation might be on the United Nations level, but at least New Zealand should open discussions on it with British countries.

Mr Hoiyoake said that what he proposed was not entirely new but the idea Was a constructive one tnat should be taken up urgently for the protection of all concerned. It would give a reasonable stability of production prices and markets. If producing countries did not co-operate the result Would be that when prices fell there would be a bitter trade war between the nations of the British Commonwealth, with the additional result of loss of production and lowered standards of living all round. Farmers and traders should be left as free as possible within Ihc general scheme to work out their own destinies.

The psychological effect of such an organisation on buyers and sellers alike would be enormous and it could make a worthwhile contribution to world peace and prosperity.