The Dairy Industry.

Horowhenua Chronicle, 3 May 1919, Page 3

The Dairy Industry.

BUTTEIi MEN DISSATISFIED. For some considerable time past the butter factories in this and, other districts in New Zealand where the dairying industry is being carried on, have been nursing a grievance concerning the price fixed by the Government for the sale of their particular kind of produce. The butter people complain that •their is the only foodstuff on which the Government has fixed a price for local consumption, while the purveyors of ■other foodstuffs—cheese in particular, as far as the butter people are concerned—can sky the prices of their goods without Government interference in any shape or form. Under the existing restrictions tho butter factories are compelled, to sell their butter locally at Is 5d per pound, I>i11k, while by exporting it they can obtain nearly Is "Id on the Home markets. Approximately, one-third of the butter produced is sold locally, so that the vendors lose 2}d per pound or 33 l-3rd per cent of their output. The cheese vendors sell th-eir produce to the Imperial authorities at 10Jd per pound, while Is 3d is the retail price charged on tho local markets. Under the Government equalisation scheme those vendors who sell tho whole of their output locally, will probably bo compensated to tho extent of about lid per pound, the Government making up the extra price out of the export purchase price of 181s per ewt. The butter people contend that they are being done an injustice in this respect and that while the butter factories of the Dominion are compelledi to supply butter for the local trade at Is 5d per pound bulk the extra 2}d which they could secure by selling on the Home markets should be made up to them out of Consdidated revenue.

A meeting of representatives of the dairy companies in the Manawatu and Wairarapa districts, convened/ by the directors of the Awaliuri and llongotea factories was held in Palmerston on Thursday to discuss the question witli a view to having representations made to the Government putting tho case of -tiie butter factories before them. The companies were represented as follows: Messrs P. Hansen and N. Campbell (Awaliuri), Darragh and A\ ill (Rongotea), Law (.Shannon), Osborne (Apiti), Liinberg (Mauriceviite), J. C. Ewington (Masterton), S. A. Broadbelt (Levin), Miehie (Cheltenham), C. R. Beattie (Hawke's Bay), "\\ . Bendall, T. Parsons and, C. Voss (Dairy I'liion). Mr Hansen was voted to the chair.

The chairman outlined the objects of the meeting and stated that they would have to adopt some definite course of action to place the wants of the butter people before the Goevrnment. Mr Ewington said the. meeting did not have the necessary weight behind them to influence the Minister in the required direction. The Government should be urged to pay the difference between itlie prices for exported and local sales for the periods 1918-19 and "1919-20 out of the Consolidated revenue. The best way to bring this before the Government would be to circularise all tlie butter companies in the Dominion asking them to appoint delegates audi wait on the Dominion Butter Committee and the Minister. He moved in that direction.

Mr Miehie, in seconding tho motion, said those present should interview members of the various districts and secure their support. He also advocated a definite understanding witli the iXational Dairy Association in the matter.

| The chairman said it was hopeless to 1 go to tho National Dairy Association for assistance. He had letters from va- ! rious places in support of the movement • but it was absolutely necessary to get into touch with all tile butter factories in tho Dominion. Ten or twelve factories could carry 110 weight with the "Minister. Mr Beattie also< supported the motion but was very doubtful as to whether they would achieve their ends. With the election coming on the Government might be inclined to take the matter up. j Mr Darragh, referring to t'he last ! conference with the Butter Committee '■ in Wellington, said the committee were prepared to help the butter people in every way. The butter factories were not properly organised. They could not ' expect the other people to do the. work for them before they knew what- he butter people wanted. He pointed out ! that Canadian dairymen had secured one offer for both butter and cheese. , They had acted on business principles ' and the dairy people here should do ! the same. They should bo able to j place a businesslike statement before the Minister.