THE BUTTER POSITION.

King Country Chronicle, Volume XVI, Issue 1533, 14 June 1921, Page 2

THE BUTTER POSITION.

“MISLEADING REMARKS.” In reply to a variety of assertions made recently by Labour politicians about butter, the secretary of the National Dairy Association (Mr T. C. Brash) makes the following statement:— To begin at the beginning of the present position of butter, it is necessary to go back to the time of the Imperial Goveimment’s purchase, which ended at March 31 last. It was definitely understood that the Imperial Government was to take the whole of the available surplus of the summer production. The dairying industry naturally strove for a maximum of export at tfie price of 2/6 f.o.b. When the question of supplies for the local market during winter arose, an assurance was given that sufficient autumn and winter butter could be made for the local market. This production has been going on since April 1, but, of course, the cost is much higher than it was for the summer make. A Bonus to Consumers. Prior to this year the price of butter has always been higher in winter than in summer. This winter the producers are receiving 4d less than they got in summer. The price of bulk butter at the factory door is now 1/11%, which is increased to 2/1% by the “subsidy” of 2d per lb. There is an impression that the “sub sidy is practically a bonus to the butter-producers. Actually it is a bonus to the consumers at the cost of tht general taxpayers. The retail price would have been 2/5, but has been kept at 2/3 under an arrangement by which the Government pays 2d of the price that the consumer should be paying, and a removal of the so-called “subsidy” would mean that the full retail price would be 2/5. “Sheer Nonsense.” People who are crying “parity” at the butter producer to-day are talking sheer nonsense, which the least thought should enable them to see clearly. They overlook the huge fact that when it is summer in New Zealand it is winter in England. When winter checks the production of" 5 butter in the northern hemisphere New Zealand has a splendid opening for trade. When production is at its greatest volume here, the price is at its highest point in England and ( other countries of the northern hemisphere. With these high prices available for export, the producers who supply the local market expect naturally to be in a position of parity with exporters. A parity price is then necessary as an obvious act ! of justice. | When the seasons are reversed,— j when production is at its greatest . volume during summer in the north- ! ern hemisphere—it is not a question f of “export parity” in New Zealand J for winter butter on the local mar- j ket, because export has ceased, yet ■ the difference between the summer f and winter conditions of trade is persistently and foolishly ignored by the dairyman’s critics. Butter Producers. It is a fact beyond dispute that t ’the dairyman has been the last of i the producers to get anything like a fair deal. He is admittedly the hardest worker, but it has only been in recent years that the return from his labour and self-denial has been worth while. He is now getting 4d per lb less than for the summer make. Why should he get still less? What good could be done to the community by injustice to the butter producer? It is well known that ! the sudden falls in wool and meat are causing unemployment in town j and country. Why try to increase the unemployment? It is acknowledged that the dairying industry • has practically saved New Zealand from calamity this year. Why, then, malign the dairyman? Has he not done well for the community? Does he not deserve some gratitude? Free iVlarket After August. ! Meanwhile the price received by ! the producer has been definitely fixed, by signed contract wtih the Government till August 31st. After that the producers will have a free market. If they had been on a free market during the term of the two years’ contract with the Imperial Government, which expired cm July 31st, 11)20, they would have been receiving 2/0 per lb before the end of that period instead of 1/7% paid by the Imperial Government. During each of those two years the Imperial Government cleared a profit of about £2,000,000 on New Zealand butter and about £2,000,000 on New Zealand cheese, a total of about £8,000,000 for the two years. This New Zealand butter was allowed to be retailed on the British market at 3/4 per lb.