PRICE OF CHEESE.

Lyttelton Times, Volume CXVII, Issue 17273, 14 September 1916, Page 6

PRICE OF CHEESE.

IMPERIAL GOVERNMENT INTERFERES. NEW ZEALAND OUTPUT MAT BJ? REQUISITIONED. The Wellington " Dominion ” states that the announcement that the Imperial Government contemplates taking action to reduce the price of oheese in the United Kingdom has caused some-'' tliihg like dismay nmong persons connected with the dairying industry in this country. Two mouths ago the New Zealand -Government was in negotiation with the cheese producers for the purchase of the whole of the present season’s output, on behalf o( tlio Imperial authorities, and at that time many of the men connected with the industry were anxious to sell to the Government. But the negotiations feli through, Owing to the Government refusing . to pay the price asked, and since thou the merchant* have been buying freely at prices considerably in excess of what the factories were willing to take for their whole output in July. The fixing of prices by the Imperial Government at the present time, the “Dominion” states, cuts right across contracts ix which nearly all the merchants anti factories uro already involved. “ The decision of the Imperial authorities undoubtedly is a serious matter for those engaged in the industry,” said one business man. “ I was one of thoso who favoured a sale of the season’s output to the Government at a fixed price- when the matter was discussed two months ago. The representatives of the factories were asking SJd a pound at that time, and probably the Government could hard made an arrangement at BJd. ' Hut the Government offered to take BQOC tens of cheese at Bd, leaving the producers to ship the balance, and this proposition did not appeal to men who were being offered 9d a pound by the merchants. The negotiations fell through, and since then, the merchant* have been buying at 93d and 9|d. Those engaged in the industry have been allowed to sell their goods and; enter into business arrangements, and now the Government is proposing to upset those arrangements by an action that, in 'my opinion, should have been, taken two months ago or not at all, The interference of the Government after the cheese has been bought and after supplies have begun to reach the stores is most disconcerting.” Th e Now Zealand Government' has not received any instructions regarding the handling of oheese this season, and it is assumed in Wellington that the Imperial authorities intend to fas the price at the London end, leaving exporters to make their own adjustments in New Zealand. Sales are suspended iu this country in the meantime, and the trade, it is believed, will continue in an uncertain state until the exact information regarding .the intentions of the British Government is recoived. Most_of the factories, ba\® already sold their season’s output. 'The indications are that New. Zealand will produce a record amount of cheese this year, probably from 45,000 to 50,000 tons, and last season’s returns show that the dairymen and tho daily companies will be in a happy position even if the price eventually received is no more than the 8d per pound offered in July by the Government for a portion of the output. The position of exporters in relation to contract* already signed may require the attention of the Government. hn additional complication from the point of view of tho exporters is introduced by the fact that on Saturday last notice was recoived of an increase in the, freight charge on,cheese. The Board of Trade has decided to increase . the charge for the carriage of cheese to the United Kingdom by one-sixteenth of a penny per pound, making the present rate 3d per pound. has taken place after the completion of many contracts, but some of the exporters had made provision for such an occurrence in them arrangements with the factories. , The new rate wdl apply to the first shipment of the preuni season.