PRODUCE MARKETS

Hawera Star, Volume L, 29 November 1930, Page 7

PRODUCE MARKETS

CAUSE OF DEPRESSION

HOLDING OF SPRING STOCKS PRESS CAMPAIGN ADVOCATED. (By Te.^rajjh—Press Association.) U jc,L.i_.uWi(L\, j\ov. 29. The Dairy rrounce JLxoorters' associauon lias received me Following came mini tire oairy Produce Jinporrsns' Association, j.oncioii: ■•• At a meeting or tne association on Wednesday, at which were present, by imitation, representatives or- Amalgamated Dairies and the Dairy Board, tlie following memorandum and resolutions were submitted and agreed to. ‘•'Ulie isub-couimittee of the association has met frequently to discuss and explain the position of markets for New Zealand butter and cheese and, in their review, are of opinion that the original cause of the present depression was the holding up of stocks last spring and the consequent increase in retail prices curtailing consumption. This continued throughout the summer, leading to an accumulation of stocks which could not all be disposed of ere the new season’s supplies arrived. The early production of "New Zealand and the greatly increased production of Australia led to conditions necessitating a drastic fall in retail prices to bring the demand into line with the supply. This is gradually taking place and, notwithstanding the large increase anticipated from New Zealand owing to the diversion of butter going to Canada and the enormously increased production of Australia', it looks at the present moment that the market will gradually get to a sound, healthy basis, regulated entirely by supply and demand. “We must not overlook, however, the large proportion of unemployed and the world’s great economic position. “The sub-comnnttee recommended that an advertising campaign ho started to induce wholesalers and retailers to stock and push the sale ol New Zealand butter at the present time. They also recommend that a petition be prepared and presented to the Government, pointing out the disastrous conditions prevailing to New Zealand farmers owing to the low prices for dairy produce, and asking that a tax be imposed on foreign foodstuffs for the benefit of colonial producers.

“The sub-committee further suggests an active Press campaign to teach the housewife the benefits of New Zealand butter, which can he bought at an exceptionally low level of price. “The committee has also given oonsideration to the question of price fixing pegging, or any artificial method of regulating the demand and, in view of the disastrous experience, of the Canadaian wheat pool, the Irish butter control, and the Scottish milk pool, are convinced that any artificial interference with the open market would accentuate rather than help the present position. “To carry out the resolutions a committee has been formed from the association with the addition of Mr J. B. Wright, of Amalgamated Dairies.”