Empire Dairying

Manawatu Times, Volume 61, Issue 239, 9 October 1936, Page 9

Empire Dairying

BENEFITS FROM OTTAWA Tho termination next year of the Ottawa Agreement is discussed in the annual report of the Now Zealand Dairy Board, which states that mo arrangements just completed between the British Government and the Governments of Australia and Now Zealand in connection with meat promise well for tho dairy produce negotiations, as the meat from tho two Dominions enters tho British market free of tariff, and in such quantities as will allow for the shipment of all meat available. A tariff has been imposed against meat from foreign countries. The Ottawa Agreement was completed in August, 1932. By its terms, the board states, there might have been imposed during the two final years either a tariff or a quota, or both. The British Government had, however, acted generously, and a free market had been available for all New Zealand produce. It was anticipated that the New Zealand Government would be represented in London by the Prime Minister, Mr. Savage, and the Hon. W. Nash when the negotiations for a new treaty take place next year. Cost to Foreigner.

To illustrate some of tho benefits of tho agreement tho board’s report quotes an article from tho Dairy Producer, an English publication. This journal stated that the total duty paid on imported dairy produce between October, 1931, and December 31, 1935, was roughly £8,000,000. During that period the price of tho principal dairy manufactures fell by 40 per cent or more, but consumption increased very substantially, duo principally to the sharp rise in the demand for butter —from 18.71 b. a head of population per annum to 25.21 b. a head. The proportion of Empire imports in relation to total imports increased substantially, and homo production had not rocodcd. On tho contrary, it had substantially increased. “From these points,” tho Dairy Producer states, “may be drawn the deductions that, since the establishment of Empire preference, and largely as a consequence of it, (a) tho taxpayer has benefited; (b) vitally essential foodstuffs have been made cheaper; (c) the nation has been more liberally fed on a shrinking purse; (d) Empire production has been greatly stimulated at the expense'of the foreigner, in accordance with the implications of tho Ottawa agreements and the policies of successive Imperial Governments; (e) the stimulation of Empire production has prevented tho foreign producer from adding the tariff to tho price of his goods to tho consumer; (f) home manufacture of dairy products is being put on a sound and organised footing. Lower Cost to Consumer. “Here are a few further illuminating figures as to the benefits the consuming public has derived during tho period of the operation of Empire pre-ference:—-The United Kingdom purchased in 1935 2,Soo,ooocwt. of butter more than in 1930 for £7,500,000 less. In 1930, the average price of best Now Zealand butter was 158 s per cwt (about Is 5d per lb.). In 1935 it averaged 91s 9d per cwt., or about lOd per lb. Last year we imported 2,700,000ewt. of cheese, compared with 3,112,000 cwt. in 1930, but the cost was only £6,600,000, compared with £12,600,000. "On the debit side prices have been unprofitable to the producer—home, foreign, and overseas Empire alike. The fall in dairy prices cannot be attributed to the fiscal policy of Empire preference; it was, of course, merely part of tho general collapse which followed the fall in tho purchasing power of the public.”