CRITICS OF HONEY PRICES.

Manawatu Standard, Volume LIX, Issue 95, 22 March 1939, Page 9

CRITICS OF HONEY PRICES.

REPLY BY BOARD CHAIRMAN. In the course of an address to the convention of beekeepers held at Massey Agricultural College, Palmerston North, to-day, Mr Wallace Nelson, chairman of the Honey Control Board, replied to critics of honey prices. “There appeared recently in the Press some criticism from certain interests over the increase of Id per lb in one of the lines put out on the local market by the Internal Marketing Department,” Mr Nelson said. “In the statement it was alleged that the price advance was not in accordance with the poliev laid down by the Government, and the recent import restrictions were mentioned as a factor in the advance. In reply, I wish to state that the readjustment in the price of this one line was strongly recommended by the Honey Control Board for the following reasons—: “At the time the Internal Marketing Division took over the assets of the producers’ marketing company, (New Zealand Honey, Ltd.) just over a year ago, considerable stocks of honey were on hand, consisting of a blend of New Zealand honey and inferior imported honey. This position was brought about by the crop failure of the previous season. The Marketing Division lowered the price of the leading line (a blend of New Zealand and imported) Id per lb and this action was supported by the producers because it was recognised that the piico should be reduced to conform to a fair value of the lower grade product. As soon as adequate supplies of our own honey became available, the Internal Marketing Division put out all lines 100 per cent pure New Zealand honey and the recent advance of Id per lb on the leading line merely restores the price of that line to tile level of twelve months ago. “The position, summed up briefly, is that the price list to-day of the Internal Marketing Division for a [iure New Zealand honey of high quality is the same as it was just over twelve months ago for a lower grade blended honey. It is obvious, therefore, that the Government’s policy of maintaining prices at a fair level has been strictly observed so far as the Internal Marketing Division is concerned. “With the exception of the season 1937, practically no honey has been imported into New Zealand over a period of twelve years and as ample supplies of our own honey are now available to meet local requirements, it is obvious that neither merchants nor consumers are adversely affected by the import restrictions. “The operations of the honey section of the Internal Marketing Division have made possible stability of prices and grades that could never have been accomplished under conditions of unrestricted competitive individual selling on a disorganised market. It is no advantage to the beekeeper to find prices soar to a high level in a season of shortage when he has little or no honey to sell, and then find prices fall to a totally unpayable level when his crop is above the average, and I am sure the consumer does not appreciate these conditions any more than the producer.”

PRICE FIXATION. At another stage in bis address Mr Nelson referred t-o price fixation. “Tlie board has recently had some correspondence with a number of individual beekeepers and from one branch of your association on the subject of price fixation according to grade on all honey sold on the local market,” lie said. “1 may say at once that the hoard is in agreement with the principle of price fixation. To agree with a principle, however, does not justify the immediate application of every particular feature of it, without due regard and consideration being given to the consequences of such action. Wo have just recently bad applied far-reaching changes in our marketing procedure, and the board believes that one of the many advantages that will emerge from the application of the existing regulations will bo tliat. very measure of price stability so much desired by everyone. “1 should, perhaps, mention that tbe Internal Marketing Department now handles tbe bulk of tbe commercially produced honey, and this division has made no representations to tbe board in favour of price fixation regulations. This, together with the verdict of your own association on tbe question, would seem to indicate a desire of most producers to follow a ‘wait and see’ policy, meantime.”