Butter Stabilisation

Manawatu Times, Volume LIV, Issue 7191, 24 June 1933, Page 7

Butter Stabilisation

Sinclair Plan Adopted Per Pres 3 Association. HAMILTON, Last Night. Drastic reforms concerning the local butter market were endorsed by the National Dairy Conference to-day. Hollowing an outline of the Sincluii stabilisation plan, a committee set up to submit a draft scheme for the local butter market made the following recommendations: — “That the sale of butter in both islands be placed under the supervision of a central organisation in Wellington vested with powers to prepare regulations with wnich ail dairy companies and/or distributing agents must comply. “That the organisation shall have power to determine: “(a) The wholesale price to bo charged throughout New Zealand from time to time for bulk or pat butter sold for consumption within the Dominion, including whey butter. “(b) The amount which dairy companies must charge for patting and distributing butter on the local market. “(c) The maximum amount which any agent may receive by way of commission or payment for acting as distributor for any dairy company for the sale of butter on the local market. < < (d) The number of the grades to be placed on the market, the amount to bo allowed for returned empty boxes, the discount for retailers for cash payment and any other matters ailecting the price to bo received by dairy companies catering for the local trade.” The committee considered that the price differential as between tho New Zealand economic levsj and world parity prices plus marketing costs should bo paid iuto a central fund, to bo distributed among the butter-making companies. It was further recommended that the comniitteo be allowed to function, with power to act in co-opera-tion with the Dairy Produco Hoard, with, a view to jinalising tho scheme. The committee's report was unanimously adopted. Emphatic Opposition From South A -FORM OF EXPLOITATION. CHRISTCHURCH, Last Night. Emphatic opposition to the Sinclair plan to control tho price of butter on tho local market was expressed to-day by Mr. C. P. Agar, the newly-elected member of the Dairy Control Board ana managing-director of the lai iapu Dairy Company. ■ “Nobody to my knowledge would sell butter below its value on the local market or anywhere else,” said Mr. Agar, “and therefore the object of the scheme is to obtain a higher price fiom the consumers of New Zealand than the commodity is worth. I think neither the public nor the Government will stand for this. “The only other objective oj. the scheme could be that tho Noith Island producers desire to share tho bcnciits of the South Island local market. I doubt whether tho South Island producers would be silly enough to fait in with this suggestion. I believe it .is the duty of tho representatives of the producers to obtain as high a price as the commodity is ivorth, but iii these times of dire distress I am opposed to any form of exploitation of any section of the community;” All the other representatives of the dairy industry agreed with Mr. Agar. One expressed the opinion that the South Island should not be asked to support tho North and as tho North Island had a greater export parity that w-as what tho scheme would amount to.