“SIMPLY CHAOTIC,” SAYS MR GOODFELLOW

Manawatu Times, Volume 60, Issue 197, 22 August 1935, Page 6

“SIMPLY CHAOTIC,” SAYS MR GOODFELLOW

Sale of New Zealand Produce Criticised EXCHANGE INFLATION WILL PIiOVE DANGEROUS Per Press Association, HAMILTON, Last Night. “Oneo again I must draw attention to the outstanding importance of tlrj United Kingdom as our only worthwhile market and to the very unsatisfactory manner in which New Zealand dairy produce in general -is marketed in that country,” declared Mr William Goodfcllow, managing-director ot' Amalgamated Dairies, Ltd., iti addressing the suppliers of the New Zealand Cooperative Dairy Company at the annual meeting to-day. Mr Goodfcllow said that, apart from the efforts of the company and its subsidiaries, no other Empire producer or organisation was making any serious ell'oiT in the United Kingdom to secure marketing efficiency. It was to be hoped that the new Dairy Board and the Executive Commission of Agriculture would tackle Uiis problem with determination and vigour. Jf the system of marketing which, the company had hud in operation since 1022 was applied tu ad New Zealand butter and cheese, the net gam to producers would be it huge sum annually, and in view of the pioneering work already done by Amalgamated Dairies, Ltd., and Empire Dairies, there was now really no excuse for further delay. The present methods of the sale of Xetv Zealand dairy produce in the United Kingdom were simply chaotic.

“In my opinion it is also a matter of supreme importance that, as far as practicable, ail trade barriers between the United Kingdom aud New Zealand should be removed as speedily as possible,’’ contended Mr Goodfcllow. “Exchange inflation, although of considerable value as a temporary measure, will be absorbed by increasing costs, and if maintained will, I believe, prove both dangerous aud of no permanent value to producers. Exchange inflation is dumping, and the British farmer is justly entitled to demand protective measures, which may have serious repercussions in this country. As tho Danish agreement expires in April next, wo are assured of a free market tor possibly another season; but what then.’

“The import duty of . 10 per cent, authorised prior to the Ottawa Conference, which has not been enforced by Great Britain, if put'into operation, would be a heavy blow to our dairy iudustry. Even a 5 per cent. Empire levy would be very costly. To make matters worse the British farmer is now receiving a subsidy which has resulted in a big increase in the production of fluid milk and cheese. The increase in British factory cheese will mean a reduction in New Zealand cheese and more butter for export. We arc compelled to look to the United Kingdom for our main market, and any act on our part which may bo resented by any important section in- that country, must be regarded' as a serious and short-sighted policy.

‘‘l had it on good authority some months since that the United Kingdom would favourably consider a definite offer of a bilateral agreement by any Empire country on a reciprocal trade basis,” said Mr Goodfellow. “If such an agreement could be negotiated, tile free market might yet be retained and provision might bo made for a dumping duty to bo applied to ail imports of dairy produce into the United Kingdom from those countries which persist in dumping. By this means trade restrictions would bo removed and prices would quickly recover.”