AUSTRALIAN DAIRY PRODUCE.

Hawera Star, Volume XLVIII, 18 August 1924, Page 7

AUSTRALIAN DAIRY PRODUCE.

Extensive poAvers have been asked by the Government of the CommonAvealth for dealing Avith dairy produce. Mr. Bruce has decided to give the industry control of export.and marketing in London, Avhich may appeal to those Avho strongly support measures for giving stability to the market. Mr. Bruce’s proposals in this connection so far cover only broad grounds, and considerable interest Avill be attached to details of the draft Bill to he submitted to the Australian 1 Dairy Council shortlv.

The proposals call for the closest investigation, for, instead of rendering assistance to the industry, they may do considerable harm if not "carefully studied. It has been said that at present too many selling channels are being employed for Australian butter, but if these are to be curtailed it may result in loss of benefit to producers through lack of competition. Whether any good would come from regulating supplies actually in London to he put upon tlie market there is questionable, remarks the Australasian. If other producing countries Avere to fall into line Avith Australia undoubtedly it Avould be of advantage, but if Australian butter is to he kept off the market, without this being the case, it Avould |uovide an opportunity for competitors to quit stock. Of course, prices subsequently may increase in consequence, but Australia should not overlook the fact that production elseAvhere does not stop. The position is full of complexities, and there is grave danger of legislation doing injury to the industry unless exceptional caution is exercised. What may happen is that the industry Avill be placed on an artificial foundation, Avhich is most undesirable. Some months ago, Avhen prices of blitter in London slumped, Australian butter AA-as Avithheld from the market in the hope that, it Avould have the effect of giving stability to the position. Unfortunately, it did not do so. Worse than all, it prompted Argentine interests to act, and a steady and substantial increase in the production of butter in that country is regarded as certain. Argentina already has made itself felt as a competitor in the butter market, and it may be accepted that the quality of its produce is receiving increased attention by its experts.