BETTER ADVANCES

Dominion, Volume 20, Issue 61, 6 December 1926, Page 12

BETTER ADVANCES

BUTTER UP TWOPENCE PER LB. CHEESE RAISED ONE PENNY GOOD NEWS FOR FARMERS The Dairy Board on Saturday received cabled advice that advances oi dairy produce would be raised 2d. per lb. on butter and Id. per lb. on cheese on all produce graded on and after December 4. This makes the new rates of advance as follow:— Creamery Butter.

butter and fid. for finest cheese have obtained since October 15. The Dairy Board has throughout protested that the advance on cheese in particular was too low a basis, and the increase now by a full penny is gratifying. The cheese , market is reported at late advices to be firm, but it has not witnessed so strong a rise as the butter market. Acting Chairman's Comment. In commenting upon •’ - general position, Mr. J. R. Thacke . acting-chair-man of the board, stated in an interview that the improvement in the advances and the market prospect was gratifying and would be welcomed by all producers. The whole of the new season’s arrivals of butter to date, amounting to substantially 2000 tons, had been cleared, and the lonic shipment of 70,000 boxes, arriving on December 6, would meet a market bare of New Zealand supplies. On latest advices, Australian export seemed likeIv to be light on account of dry weather—in fact, preliminary inquiries had been made for New Zealand supplies. This factor, together with the improved consumptive demand following the end of the British coal strike, lifted prospects considerably. The cheese outlook was also improving with the increased consumption of miners returning to work, and would possibly continue as Canadian supplies fell away. Possibilities for Producers. Now that the board’s work in marketing had been launched and was definitely in operation, it was timely, said Mr. Thacker, to review the position and the possibilities afforded producers. The improvements effected by tile board in shipping and insurance had been negotiated quietly and introduced without turmoil or opposition; but the same certainly could not be said of marketing. On the contrary, this had been resisted and fought over a long period by a mass of propaganda and misrepresentation, in face of which it was not surprising if some producers became confused. This made it all the more necessary to review the position and state the possibilities in relation to producers’ objectives. This sectional opposition in its later stages had been helped by the circumstances of the coal strike and fhe sustained storage of some New Zealand butter for an expected rise, which did not occur because of extra European supplies combined with reduced purchasing power of the people In connection with these stored stocks, information now available showed that American sneculators were responsible for the holding uo of several hundred thousand boxes of New Zealand produce as an “investment.” The blame for this whollv, but wronglv, fell noon the New Zealand producer, who thus had been beaten w>th a stick of which he was more lar"elv the victim than the holder. These stocks, however, were now cleaned nn to all practical mimosas, and normal marketing would develop on a basis which, because of tin- information that would now be available, would prevent a repetition of such exner : enc.es in the future. No Mononoly or Dictation.

Attempts had been made to represent the producers’ objectives as monopoly or dictation, lie Continued. That was not so. Producers simply wanted equity and fair market value as adjusted with competitive butters To secure this, the joint committee between the Loudon agency and the London importers was functioning. The value of its prompt and liquid adjustment to the market was demonstrated in the third week, when on successive days, through market improvements, the nominated price was twice lifted four shillings prior to

the exhaustion of stocks by heavy buying. I’hat subsequent rise undoubtedly meant money in the pocket of the producer-. Artificial efforts against price naming had even gone so far as to suggest a boycott. This had been proved a myth by' market events, and he was satisfied that time would so speedily demonstrate the advantages of a steady price to the regular distributors that speculative propaganda would die a natural death. The regular trader liked a regular market. The speculator liked an irregular market. It was the regular trader who made contact with the consumer, and it was with the consumer that the producer wanted his closest contact on the basis of quality and fair market price. The producer was not interested in the speculator who sought market manipulations to his own advantage. Fanners had had enough of the annual slumps of the past, and in facing a lower level of economic prices simply could not afford to take the risk of a manipulated seasonal slump. Regularity and evenness in price returns were essential, and these could only be obtained by marketing organisation permitting regular shipments of comparatively even quantities of produce and the supervision of its proper handling in Britain, so as to reach the consumer without damage, together with the oversight of sales, with full knowledge of stocks and competitive quantities, so as to secure justice for the producer. This organisation would give the British consumer more regular supplies of fresher New Zealand butter; would avoid excessive storage and excessive price variations, and through advertising would permit the development of valuable national good-will. Up to Farmers TJiemseives.

If farmers remained solid and gave the board the backing necessary to the successful application of the policy, Mr. Thacker declared, they would for all time kill the severity of the seasonal slump which in the past always afflicted New Zealand butter. There would, of course, be market variations, but with spread shipment and orderly marketing they could not repeat the sudden drops of £6O a ton within a fortnight, and so wipe out 25 per cent, to 30 per cent, of .the expected value of our produce. Stoppage of the slump leak alone would, in his opinion, mean approximately £1,000,000 a year to New Zealand, and it was surprising to him that the advantages of this to the general trade of the country were not better appreciated by the Government, by the commercial circles dependent upon the farmer, and by the Press of the country. The evidence of the Imperial Economic Committee showed that these seasonal slumps were capable of being minimised—but only if comprehensive action were taken. This rested with the producers. Certain elements of weakness- had been developed, and the effort made to kill the board’s policy without trial. That had not succeeded, but it was unfortunately true that the efforts to divide the producers had sensibly weakened the application of the board's policy. The enemies of the farmers knew only too well the difficulty of securing unity amongst farmers, and they had planned and worked accordingly. Producers would have to fight against such weakening efforts. They now had the chance of their lives to secure permanent improvement in marketing, but they could only safeguard that chance by ensuring the board’s policy fair trial. "If that policy,” said Mr. Thacker, "is finally crippled, it will be due to the weakness of farmers and their inability, individually and collectively, to withstand the insidious activities of commercial interests. For the sake of producers and the country as a whole, I want to see this scheme given a fair trial. The further Igo in it tile more convinced I become of its immense possibilities for the benefit of the producer. There . simply must be a lot to be gained, or else there would not be so much fight against it.”

Finest grade Per lb. 1 2 First grade 1 li Second grade 1 0} Wbey Butter. First grade 0 11 * Second grade 0 10 Cheese. Finest grade 0 6} First grade 0 6J Second grade 0 6} With a premium of 3s. 4d. per crate for finest grade cheese. warrants will Advances against store now be:— Creamerv butter Per box. £ s. d. ..300 Whey butter .. 2 0 0 Per crate. Cheese .. 4 0 0 The former rates of Is. 1 for finest