PRICE OF BUTTER

Dominion, Volume 26, Issue 184, 2 May 1933, Page 10

PRICE OF BUTTER

Marketing Problems in Australia THE PATTERSON PLAN During their recent visit to Australia the representatives of the Dairy Board, .Messrs. Dynes Fulton (acting chairman), W. Grounds and T. C. Brash (secretary) attended a conference of representatives of all States called to consider the problems of the local market. Difficulties appear to be arising in connection with the Patterson Plan, due to the keenness of dairy companies to secure a greater share of local sales, thus making for lower prices. Further, the ever increasing export makes the question of equalisation of prices more difficult. The Patterson Plan is not backed by any legislative authority, and there appears to be distinct, desire that this should be secured. The following resolutions were carried at the conference: 1. That this conference is of opinion that the price of butter consumed within the Commonwealth should be determined on the basis of Australian economic conditions —in other words, that an Australian price should obtain regardless of variations due to economic or other causes in Britain or elsewhere. 2. That conference recognises such an objective cannot be achieved under present conditions which because of surplus production of necessity encourages the exploitation of the local market to a point which reduces the local market price to world’s parity; conference therefore is of opinion that to permit of the achievement of its objective the incentive to exploit the local market must be removed and that this is only possible by ensuring that sales of butter whether effected locally or overseas will secure the same return to factories. 3. That conference is convinced that its objective can be secured only by legislative means, and to that end a sub-, committee be appointed and empowered to draw up proposals for submission to the Commonwealth and State Governments. in doing so the committee to have regard to the dried fruit or any other legislation on the Statute Books of the Commonwealth or States having a bearing on the matter. The committee mentioned in No. 3 was duly set up. Its main objective is to secure legislative authority for some proposal whereby prices of butter on the local market should be raised to a higher level, which may include the legalisation of the Patterson Plan. It is understood that legislative authority for the Patterson Plan may be difficult to secure, but it is hoped that some arrangement may be made to provide for a price in keeping with Australian economic conditions.