Butter Slump

Hawke's Bay Tribune, Volume XV, Issue 216, 11 December 1925, Page 5

Butter Slump

DAIRY BOARD S POLICY. STATEMENT BY THE CHAIRMAN. Wellington, Dec. 10. In reviewing the circumstances attending the marketing of our produce and the present position respecting butter prices, Air. Grounds, chairman of the Dairy Board, said the experience has invariably been that the markets have been good until the Christmas trade is finished. The board, therefore, decided that all produce in cold store at the end of November should be shipped as speedily as possible, so that it might arrive to a usually good market. Following this a reservation of approximately one-third of production during December, January and February was to be retained to provide for larger delivery when nominally our supply was small. This plan and the proportions decided upon were conunended by many of the exporting interests associated with the trade.

Then the strike arose, and during this period produce was placed on board wherever possible to facilitate despatch on the termination of the strike and to ease possible congestion at the cool stores. During this time it was known that first quality butter was scarce upon the British market-, and prices rose to 236/- per cwt., an abnormal price, which invariably provoked a violent reaction. 'Tlie immediate result of this congestion of shipping was that only a meae trifle of New Zealand dairy produce arrived in Britain in October. November arrivals were moderate, but below what would have been the case, and December will be approximately even with November and considerably smaller than they should have been, with the inevitable result that the prospective airrivals in January would be abnormal. These facts hail precipitated the present position, and notwithstanding the apparent results, the Dairy Board was convinced that the course taken by it was the only sound one.

ELECTION OF THE BOARD. WARD SYSTEM ADA’OCATED. Mew Plymouth, Dec. 10. To urge the rescission of the compulsory clauses in the Dairy Export Control Act and the substitution of the ward for the block system in the election of the board, a large deputation from the New Zealand Producers’ Free Alarketing League waited on Air. Coates and Air. Nosworthy this afternoon. Both the Alinister of Agriculture and the Prime Alinister spoke in reply and they gave an assurance that a bill to amend the system of election would be put through early in the coming session after the dairy farmers had been given an opportunity to express their views on the form tile alteration should take. On the question of compulsory marketing, it was pointed out that'as the matter stood it would come into effect before an election under the new system could be held. Regarding this, Air. Coates expressed the view that it was advisable, in view of the value of the industry, that the enforcement of compulsion should be approached with the utmost caution. Ho also expressed the view that with the amended system of election to the board tho matter ot control of marketing would be entirely in the hands of the producers, without any further legislative action by the Government.