THE EXPORT MARKET.

Northern Advocate, 9 January 1920, Page 3

THE EXPORT MARKET.

FOR DAIRY PRODUCE

It is interesting in view o statement made by the Prime Minister (Mr W. F. Massey) concerning the possibility of the continuance of the Imperial purchase of New Zealand produce, to note (the circular issued by the Nation-all Dairy Association. The circular says, inter alia: — Probably the question which most agitates the mind of dairy company directors and officials is, "What us going to be done with our dairy produce after July 31st, 1920, when the present contract with the Imperial Government expires?" With a view to securing any information which might be available on this point, the writer cabled Mr Ellison to investigate, and also wrote Mr Massey asking if he would, in the interests of the producers, cable London and ascertain, if possible, the minds of the Imperial authorities in this connection. Mr Massey immediately agreed to send the necessary cable, but up to the present no reply has been received. Mr EMison cabled as follows: — "Contracts butter, cheese. Ministry unwilling make definite pronouncement. My opinion price butter likely be controlled for two, possibly three years more. Cheese may be released next year depends on outside demand for world's supplies. Anticipate Ministry will want make further contracts. —Ellison." This cable gives probably all the in- , formation we were entitled to expect and which, boiled down, simply means that the Imperial authorities have not considered the matter with a view to a decision. Meetings of butter and cheese producers will be held early in January to consider the position, and the discussion will, no doubt, centre around the question "whether thep roducers shall demand a 'free, market,' or, if possible, sel to the Imperial authorities." The position of food supplies of the world is well nigh desperate. Mr Hoover, who handled the food supply of Bellgium during the war, and who, after the signing of the armistice analysed the whole, position in the interests of the Allies, is probably the greatest authority in the world to-day on the question of food supplies. In his report to the Imperial Government, writing of the causes of food

shortage, he says:—

"(1) From ail these causes, accumulated to different intensity in different localities, there is the essential fact that unless productivity can be rapidly increased, there can be nothing but political, moral and economic chaos, fiually interpreting itself in loss of life on a scale hitherto undreamed of. "(2) No economic policy will bring food (to those stomachs or fuel to those hearths that do not secure the maximum. • There is no use of tears over rising prices; they are to a great degree a visulisation of insufficient production. "(3) The stimulation of production lies in the path of avoidance of all limitations of the reward of the actual producer. In other words, attemps to control prices (otherwise than in the sense of control of vicious speculation), are the negation of stimulation to production, and can only, result in further curtailment of the total of commodities available for the total number of human beings to be fed, clothed and housed. The argument so much advanced that the world shortage may develop, and justifies continued control of distribution and price, is based upon the fallacious assumption that, even if the world markets are free of restraint, there is a shortage to-day in any commodity so profoundnd as to endanger health and life." This report certainty indicates that in his opinion price restrictions should cease. On these grounds alone ther 1 is abundant evidence in favour of a "free market." It is more than likely, however, that Mr Allison's opinion "that price of butter will -be controlled for two or three years" is the correct one; and if butter prices are going to be controlled it is almost a certainty that cheese prices will also be controlled. The question then arises: "If prices are going to be controlled in England will the Imperial authorities purchase the New Zealand output or will they aillow the produced to ship through their own channels to any market they choose?" The position which arose in Canada in connection with the cheese purchase leads the writer to believe that if there are price restrictions in England, the Imperial authorities will purchase the New Zealand output. Should this be the decision of the Imperial authorities, what is going to be the prices? The day is past when the British Government is entitled to make a profit out of the producers of the Dominion, and the outcry against the Home authorities for profiteering in connection with wool and meat might well apply to dairy produce. The producers of New Zealand are entitled to one price onUy, viz., retail price in England less all commissions and charges for handling. To secure this price the writer is strongly of the opinion that in the event of the Imperial authorities deciding to purchase, one or more representatives from both butter and cheese committees should proceed to London and negotiate the death Canada has invariably secured better prices fpr their produce than New Zealand, due mainly to the fact that representatives of the Imperial Government visited Canada and made the deal direct with representatives of the producers. They are not likely to send representatives to New Zealand, so let representatives of producers go to London. There wMI certainly be a ken demand among producers, and rightly so, for a "free market,?' and the above suggestion to send representatives to London is well worth consideration, if only to fight for that "free market." It is understood that a meeting of representatives of dairy companies will meet in Hawera this month to discuss the position.