NO BUTTER QUOTA

Dominion, Volume 26, Issue 171, 15 April 1933, Page 12

NO BUTTER QUOTA

Dairy Board Stands Firm DECISION MAINTAINED Unanimous Agreement “SEVERE & DRASTIC BLOW” At its special meeting on Thursday the New Zealand Dairy Produce Board unanimously decided to maintain its previous decision not to entertain any restriction of exports of butter to Great Britain. The board discussed fully the proposals that have been current as to the adoption by Britain of quota restrictions upon the import of butter. The unanimous opinion of members was that the acceptance of the principle of any restrictions upon the importation of New Zealand butter into Britain would be a severe and drastic blow, not only to the dairy industry, but the whole Dominion, both for the present and the future. No fresh evidence was submitted to convince the board of the need of any revision of its former decision disagreeing absolutely with the proposals for restriction. v The point of view was strongly advanced that New Zealand had bor- » rowed money extensively from the British money-lender, in order to develop her resources and expand the Dominion, and the country’s capacity to repay those obligations depended absolutely unon retaining full and free access for New Zealand produce to the British market. It was stated that both political and commercial leaders for years past had urged the industry to increase production, and the whole economic drive of the industry had been in that direction. Those interests now urging restrictions to meet 'a temporary need could not, it was felt, appreciate the real impact of their proposal upon the Dominion’s economic life, and for that reason the board decided to maintain its previous decision. With this viewpoint, the delegates for Australia, Messrs. Dynes Fulton (acting-chairman), W. Grounds and T. C. Brash (secretary), left for Sydney by the Wauganelia yesterday to confer with the Australian Dairy Export Control Board. The prime purpose of their visit is not to discuss export restrictions. but to attempt to co-ordinate regular shipping arrangements for permitting more even arrival of quantities of dairy produce going forward to Great Britain. QUOTA NOT A CURE Export Merchants’ Views That a voluntary restriction of exports of butter will not solve the difficulties facing the dairying industry is the considered opinion expressed by Joseph Nathan and Co., Ltd., in their monthly .market report, 1 ' 1 ': ‘ ■/.; ■Remarking that the increasing supplies of butter received on the English market from practically all producing countries have depressed the market beyond any figure ever thought of by the industry, Messrs. Joseph Nathan ami Co. state that “the plight of the dairy farmer is desperate, and a continuance of these low prices will be calamitous.” “There is much to be said both for and against the quota system,” they state, “but while we believe that those advocating a voluntary restriction of shipments have the interests of the industry at heart, we are of the opinion that his action would not solve the difficulty. “If restriction were made it is likely that buyers would immediately commence to cover their requirements, with a resultant rise in rates; but when this trading ceased there would be the usual stagnation, and prices would slip back, perhaps even lower than' they are at present. Apart from this, we should still have a carry-over in New Zealand (involving additional storage and interest charges) which would then meet the full competition of the northern hemisphere season. Danish Marketing Methods. “A feature of the Danish marketing policy is to meet the market at all times and clear supplies each week at best possible prices. In any case, it is doubtful if the immediate introduction of the quota system, even supposing it does what its advocates expect, would lie of much benefit insofar as the present season’s output is concerned. “Consumption in England has kept up wonderfully well considering the troublous times the Mother Country is experiencing. Nevertheless, stocks at present are a little higher than they were at the same time last year; but even so they should not be considered excessive, and do not warrant the present range of values. "Latest reports from England advise that the selling of Danish butter in pat form is now well under way. This is a question’ that should receive the earnest consideration 'of all factory directors. Contrary to the expressed views of opponents to patting, this Danish venture lias not affected New Zealand pat sales in any way, but rather has tended to increase them. The solution of this apparent paradox is simple. “Previously, all shops had an established sale of Danish butter from the cask, and buyers would not bother to • ■ push other butters which were hard to sell. However, with the advent Of Danish in pat form, shopkeepers found it easy also to offer and sell to the consumer other butters in pats side by side. "It has long been''realised that the present generally accepted Methods of .. marketing New Zealand butter and cheese are not conducive to the producers obtaining the maximum result of his labours; and we, are still confident that, the salvation of the industry lies in the development of the pat trade.”