Evening Post FRIDAY, SEPTEMBER 19, 1941. SELLING OUR PRODUCE

Evening Post, Volume CXXXII, Issue 70, 19 September 1941, Page 4

Evening Post FRIDAY, SEPTEMBER 19, 1941. SELLING OUR PRODUCE

The completed agreement for tin sale of dairy produce to the Unite< . Kingdom Government is favourabl for cheese and not unfavourable fo: butter. In cheese the British Govern ment undertakes to buy during tin war and for one year thereafter uj to 160,000 tons annually. For th< coming season the price to be pai< will be 5s 9d sterling a cwt abov< last season's price. As 90,000 ton: was the approximate exportable sur plus before an effort was made t< raise the output, it is probable tha the maximum purchase now agreec upon will cover all that can be pro duced. Moreover, the extension oJ the agreement to cover a year aftei the war means that the capital cos! of special change-over arrangements can be spread over a longer period The addition of 5s 9d sterling tc the price should also afford reason able financial relief. The Minister's listing of charges upon this ad' ditional payment suggests, however, that the actual primary producers may be disappointed in the share of it that will reach them. If the extra costs incurred in providing extensions to cool storage are to be met jfirst, and then extra costs in manufacture, there may'not be much left over for the extra work and expense on the farm, It is to be hoped that, in the distribution of this premium, the readiness of the farmers' response to. the call for extra effort without haggling over charges, will induce a generous attitude on the part of. the Government. The other important part of the agreement is that fixing the quantity of butter for which the United Kingdom Government, with the New Zealand Government, will accept responsibility under the surpluses agreement concluded some months ago. The maximum quantity named, 115,000 tons, is much less than last season's export total (about 135,000 tons), and less also than the average. No doubt this is due to the allowance made for a smaller output of butter, consequent on the change-over of the industry to cheese. The output of cheese cannot be boosted up from 90,000 to 160,000 tons in a couple of seasons without greatly reducing butter production. Last season, however, there was a substantial increase in cheese production and an increase in butter also. If, however, the butter surplus does not fall to 115,000 tons, it is to be assumed that the New Zealand Government, as guaranteed price purchaser, will be responsible to the farmers fdr any quantity in excess of 115,000 tons. IThe named quantity is only that for which the United Kingdom Government will share responsibility. It would'be reassuring to have a specific statement from the Minister on this point. It would be helpful, also, to have an outline of the Government's plans for dealing with post-war marketing. An interesting address was given to the Dairy Board Conference yesterday by Mr. G. A. Duncan, Director of Export Marketing. Very briefly summed up, Mr. Duncan, on his visit to North America, discerned possibilities of selling butter 'in U.S.A. and Canada, but only if shipping could be. made available. He did not mention quantities. As to post-war marketing 'in the United Kingdom and the Continent of Europe, he could only enumerate the factors that would influence the position. These are at present incalculable, for no one at present can make even a guess at the effect of the war upon European primary production -or European buying capacity. Even the permanent effect of Britain's war effort to increase the internal supply of foodstuffs can be only guessed at.^' This may be said, however: that New Zealand, while hoping for good markets, should consider what may be done if the buying power of old or prospective new customers is low. At least the outline of a plan should be prepared to meet sagging markets. This is desirable both from the economic viewpoint and as a contribution to the humane rehabilitation of war-torn lands. If we are to make such a contribution, we must keep our own national production costs on a reasonable level. Not the farmers alone, but all the people, must be ready to share in the cost of the reconstruction effort.