A TARIFF ISSUE

Evening Post, Volume CIV, Issue 9, 11 July 1922, Page 3

A TARIFF ISSUE

NEW ZEALAND BUTTER IN AUSTRALIA. ,

Importation of.gutter from New Zealand in order to combat the tight hold Queensland had of' the market has paused quite a stir, in the dairy industry in the Commonwealth. The Australasian has taken the matter up in tibe interests more of the general public than of the industry. It remarks that the question may very well be raised whether Mr.' O'Callaghaai, the Commonwealth dairy expert, was- directed by the Minister of Customs to raise at the recent conference of dairy factory managers in, Brisbane an issue that is ©essentially a tariff matter. Mr. O'Callaghan certainly said that he was not suggesting that the duty should be raised,'but what else is he doing, when he asks : "Haw are we importers and exporters at the same time? Why is it that New Zealand butter is being largely imported into Australia, notwithstand..ing a duty of 3d a lb, whereas Queensland hue. to export ita butter abroad,to a much less remunerative .market ?"

It could almost be inferred that Mr. O'Callaghan lacked knowledge of what has been going on in the- butter markets of the Commonwealth, continues the Melbourne paper. Presuming he is conversant with the situation, he might, have suggested to factory managers that it was'not wise for the Queensland pool to attempt to squeeze the last farthing from southern /consumers, and so divert buyers to other quarters. That is what happened to Queensland sellers, who thought they had the butter situation in their own hands'. They set out to "bleed" the southern States. Negotiations were opened by traders in New Zealand., with the result that a quantity of butter was purchased there!by,;New South Wales and Victorian dealers! Queensland even wanted to oust Victorian butter makers from the Melbourne market. Large quantities of butter were sent here on consignment, but, owing to favourable weather conditions, production in this State increased, 'so that little of the Queensland butter was' wanted. Consignees had a pill to swallow ' when they learned about .this increased output. For a while their produce was difficult .to.sell, 'even at a sub-; stantial discount on the price of Victorian butter. The late advance in the London market, however, would stand them in good stead' for any stocks that may have been held during the last week or two, as good butter is now scaTCe in Melbourne. In the circumstances, Mr. O'Callaghan could have done the Queensland factory managers ■ a services by advising, them not to force ale to go away from Australia for ituffs. ' -■■■■ ■.•»«-.- ;

Of late there has been a scarcity of best butter in Melbourne.. This prompted buyers to offer a premium on market quotations, with th« result, in 6ome instances, .that agents were able to make a higher return to factories. Competition of the kind forced' other agents to follow suit, and the wholesale price of butter has been advanced 5s a cwt, mak-.. ing it for choicest 192s a cwt, or. approximately Is B^d 'per Ib. Butter is, still quoted on; a grade basis, but, a,])-' parently, most'of the, good qiiality produce is being cleared at top prices.