THE DAIRY INDUSTRY

Hawera & Normanby Star, Volume LIII, Issue LIII, 13 April 1908, Page 5

THE DAIRY INDUSTRY

A QUESTION OF COMMERCIAL MORALITY.

[I'BKSS ASSOCIATION.] AUCKLAND, April 13. The New Zealand Produce Commissioner at Home (Mr H. C. Cameron), together with the Chief Dairy Commissioner (Mr D. Cuddie), has been making the rounds of the butter houses at Home, and as a result Mr Cameron cabled to the Prime Minister, and followed up the cable with a letter which made some rather startling allegations against those concerned in the industry at this end. These statements were referred by a Herald representative yesterday to a number of firms engaged in buying factory outputs on contract. One prominent buyer said there were undoubtedly shortages on contracts made with Home firms, but equally so there were great shortages on contracts made by factories with buyers here. He produced a list to show the short- ^ the case of each factory he had contracted 7 iih > revealing an average deficiency of 20 pc? c * nt - <*<* all the contracts. Asked to w>* J? c , a *J ri " buted the shortages, he repi icd tl ? at the butter business was really a gal?™ le on the weather. The phenomenally" good season in 1906-7 had resulted in big outputs, and for the contracts for 1907-8 the factories were rather inclined tfl estimate the outputs on the basis of the previous season. Another gentleman closely concerned in the trade said that unfortunately in some parts of New Zealand the charges made by Mr Cameron were "a true bill." Some operators on the market had adopted the "swinging over" dodge. They had bought outputs up to the end of March, and had closed contracts with Home firms at prices ranging from lOfd to lOJd, and then prices went up in the Dominion to such amounts as 13Jd and 14d, and the operators lessened their exports and sold butter in New Zealand at these prices, taking the chances of meeting the claims of Home purchasers for shortage on contracts. The Home firms would claim for the shortage on contracts at the difference between the price the contract stipulated they should pay and what the produce was worth on the Home market. This would" work out at from £d to l£d per lb, so that the operators reaped the balance of difference between this and the ! prices realised in New Zealand. Whatever had been done in that line had been done in the Dominion, and there had been no shipping past the Home firms. Of course, it was a question- j able practice and would do harm to the industry. "Undoubtedly there was a shortage, owing to the dry period, but the shortage on Home contracts was greater than the shortage on actual factory outputs. The dry season had caused the whole thing, it having re- J suited in short supplies and high prices on the local markets, and hence the temptation to "swing over." % . In the report referred to it is set j out that there have been well-founded complaints of "fishiness," but in one notable instance this was traced to want of proper care in handling. Complaint is made also of acidity and off flavor in cheese, but mainly of greenness, due to cheesese not being sufficiently ripened before shipment. In referring to ' the failure to carry out contracts the Commissioner says there j is ground for general complaint, and I much harm is being done to the good J name of the dairy produce trade in New Zealand.