METER AND CHEESE

Evening Post, Volume CXV, Issue 109, 11 May 1933, Page 14

METER AND CHEESE

#jSPOSAO PROBLEM

THE QUOTA PROPOSAL

'; • ('Evening Post/* May ,11;! i That the-butter-quota issue is vital to JJew Zealand in general and to' the dairy producer in particular is convincingly shown by Professors Riddet and Marsden in a special report on the "Problem of the New Zealand Dairy Industry." Those problems are as .'.varied-, as .-they _are numerous, but the quota problem is serious for New Zealand for the following among other, reasons: Production is increasing, the only outlet overseas is the already congested British butter market, and increased supplies are being furnished by Australia and diverted by foreign coun-j tries from Continental markets closed or ] partially clos6- to them. Reference is j '.made to. tho great increase in British imports of butter since 1013, when they amounted to 201,700 tons, of which 20 .pa* cent, was from.the Dominions, and imports for 1032, amounting to 407,100, of which 52 per cent, was from the British Dominions. It is realised by the, compilers of the report that "unless the consumption of edible fats in Britain :ean bo further materially increased or the margarine trade entirely replaced, there is iiot much hope for increase in the absolution bi butter by Britain, beyond the provable 1933 import level." , ; Seduction.-in price will only increase to a-certain point; but an increase of even one pound per head will provide for an : outlet of an additional 10,000 tons of butter,: and !'i.t. is worth the effort." ■ , ; , ; . .-■■, ' . ■ HOPES OF EXPANSION. The growing weight of Empire butter placed in the British market ia reviewed, and the need of meeting; the taste andother requirements of the British consumer is .emphasised. The quota system and i^s indirect effects on the British, market for-New'Zealand butter is dealt with, ajid the reasons given for and against are set'-ojiti" The professors state, without hesitation/that, "viewed broadly,' New Zealand's hopes for expansion in her butter trade lie (a);, mainly in the British' market; (b) increasing^consumption by improving quality, | avoiding long storage,' by uniform production ' throughout the year, providing ; the, market with what it needs, and active'propaganda; (c)- reducing price to compete with margarine; (d) in continued low butter prices causing a reduction in the output of European countries; (c) tapping as far as possible Eastern markets. ;!V^ith return to normal' trading conditions, it is possible that reciprocal trade" with Gel-many, France, with U.S.A. may be built up." REACTIONS FROM A QUOTA. The whole welfare of New Zealand ia described as bound' up_ with the quota' issue.' The Exportable"produce of New Zealand is essentially pastoral, "and the population surplus to primary production export imder .quota cannot be adequately absorbed by secondary industries at present." ~ ; . , ..■.■■■, • Thus, the Dominion must for some time continue to rely on the export of mutton, lamb, bte^f,'wool, and1- dairy produce. Already 4 export avenues have been'closed for 'iribreased/iupply of meat, other than perhaps-rp,orkV.'. . ..' '■■■".'•:-..;■.■:■,■' •■ ~ :■■ "If we are to, consider restriction of production of dairy products, we must study intensively and immediately future products -for land utilisation' planning, for quotas assume the ability to plan on large scale." • ■■ . ■ .Whether.'.iff q|uota be accepted or not, the report continues, it is clear that some immediate action r'shouldjje taken to ease the position: arising from a greater rate of increased: production than economic adjustment can consume. In this connection, attention has already, been directed to the levelling, of production of butter throughout, the ;year, need for improvement in quality and usefulness of propaganda. . .. , ' '■ SUGGESTED SIDELINES. Some relief could be obtained by intreashig.'the'liquid milk consumption inNew Zealand itself. The consumption of milk in'this country is put at half a pint per head .per- day. ■ Towards stimulating, local consumption school. children should be provided with at least one pint of milk a.'day. Exports .of veal, condensed milk, and bull? tinned cream." are suggested. . Costs-'of'productionmust be'! further _re-duced-by" increase in' feed production, improved ent. in.' dairy herds,; more /attention paid to, pig-raising, and in other ways suggested. -?■'.".-• < • - • > 4 The r;epof<;',;c9ncludes::.' tlt is' perhaps true that-some of-our'suggestions involve an increased amount/ of labour applied, to our dairy produce, but in these sad days of unemployment, it is not necessarily a detriment to the, suggestions, since, at any rate)-labour will.be. usefully employed. We^ask-rthatroui* small effort -be viewed, in;;that;, light and that the facts of the ■situation-be assembled and viewed dispassionately and that all necessary ACTION '-be taken before it is too late. Apart from the! point of view of econo-. mics, there.,is .the.higher issue °f the satisfaction arid:pride which all connected with, the industry desire to feel legitimately with regard to its products."