WARNING TO DAIRY FARMERS

Evening Post, Volume CVI, Issue 90, 13 October 1923, Page 6

WARNING TO DAIRY FARMERS

Weddel's "29th Annual Review of the Imported Dairy Produce Trade-" for the year ended 30th June contains a hint to the dairy-farmers of New Zealand which they cannot well afford to ignore. The "Review" describes the Dairy Produce Export Control Bill as having for its main object the security of better prices for produce. This can be achieved, the "Review" holds, "by means of closer co-op-eration among the interests concerned, without resorting to compulsory measures." On the other hand, the opinion is expressed that the main object "may quite conceivably be defeated if bureaucratic control be substituted for the present system of open ■ competition." Weddel's are in the distributing business in a very large way, and therefore are open to the charge of being- interested parties, but their opinion is entitled to respect. If better prices mean the highest possible prices that can be obtained for the produce, then heed should be given by dairy farmers to remarks in the "Review" , upon the demoralising effects on the market of extremely high prices, combined with the unsettled state of Europe, a condition over which New Zealand can have little or no control. The political situation on the Continent has been responsible for the diversion of huge supplies of butter from German and other markets, and they have been poured into Great Britain. The Danes are described as "almost impregnable" in the markets of the North and Midlands of England, a position obtained by sending customers what they want, and in regular supplies. The consequence is that they command a premium over the price of New Zealand butter, even as much as 20s to 25s per cwt last year. If New Zealand dairy-farmers desire to eliminate this margin they must emulate the Danes, make their produce as well known as Canterbury lamb, and, Weddel's add, "the quality should be irreproachable." Competition from all sources of supply to the British market is increasing. There are problems confronting the dairy-farmers to-day that were non-existent a few years ago, and portents of a commercial sort .that it would be folly to despise.