About Butter

Manawatu Times, Volume LIX, Issue 7459, 9 May 1934, Page 4

About Butter

(To the Editor.)

Sir, —Now Zealand depends upon butter exports to, pay her overseas debts and buy her imports. The Ottawa Agreement guaranteed her a fair -outlet though at an unfair price for two years. By sticking to this agreement for the full period wo gain nothing,, as it only means exporting more at the same total value we would get for a less quantity owing to tho lowering prices. Although Now Zealand is tho largest user per capita, she exported during 1932 a surplus of nearly 245,000,0{)01b5. In 1926-27 Australia produced. 252,500,0001 b. In 1931-o2 Australia produced over 390,500,0001 b. The exports of butter from Australia increased bv 83 per cent., from 3929-30 up to date., , Denmark has been sending butter to Britain at,tho rate,of, 126,000 tons per annum and she has had an oven bigger outlet in Germany,), viz., 130,000 tons, which must be now transferred .to some other market, sinco Germany has closed her doors to imported butter. Owing to Britain’s agreement with Denmark, which provides for a substantial modification of the Danish tariff in favour of Great Britain, it is certain that the major part of the 130,000 tons shut out from Germany will find its way on to the British market. Holland is subsidising her production of butter, so (that the home price is 190 s per cwt, while her surplus is unloaded on to the British market at less than one-third of that price. Under the direction of Major Eliott, Britain is pursuing a relentless policy of self-sufficiency, and there can be no doubt whatever that tho British market for butter and other primary products is a decreasing instead of an increasing one.

There are no figures available of Britain’s Home production of butter, but the figures are available from which we can form some idea by comparison. Britain has 3,541.000 dairy cattle, Australia 2,881,000, New Zealand 1,845,000. The people dependent upon British agriculture are a factor of great importance in Britain’s economy, and she cannot continue to oblige other primary producers by permitting herself to be tho dumping ground of tho world. It is plain that the British market is rapidly contracting so far as we are concerned. At tho World Conference in London Mr S. M. Bruco declared that the policy to restrict production was a policy of despair - and defeat, which policy ho stoutly resisted. His present policy in Australia (and we are justified in presuming such policy has to do with his visit to New Zealand) is to-prepare, public opinion for still greater restrictions than those which have-already been imposed. One outstanding fact is - staring us in the 'face, viz., that all countries are now concentrating upon self-contain-ment, and they are proving, too, that a close approach to this objectivo is possible. To ask Britain to curtail her own primary industries for our benefit is as unreasonable as for Britain to expect us to cut out our own secondary industries for her benefit. Thore is absolutely no Teason why we should not do the same. We havo tens of thou-, sands of intelligent and vigorous unemployed men and possibly twice as many unemployed women and young people of both sexes. We can be as self-con-tained as any other nation so far,as we may have raw material available, and both machinery and such raw.material as we do not possess may bel.had in exchange for our surplus. • We have no cotton-spinning and weaving, yet our climate is ideal for such;.-manufacture, and- experienced workers; aro plentiful and. the - experience is) rapidly acquired.

No. matter if it ~be Britain, Japan or Continental countries,, they all have to got the raw .material.from America, Egypt and India-principally, and the purchase by us of' these would ensure a market for. some of our products. Self-containment to tho uttermost- is the trend of the countries of the world, and the sooner we recognise that ouv prosperity does not lie in tho direction of producing unlimited quantities of butter and cheese, but in producing all our needs as far as possible, the better it will be for us and for those on whom we try to force a bigger amount of our primary goods than they want. I am, etc., W. ARCHER. Palmerston North, May 7.