PRICE OF BUTTER

Nelson Evening Mail, Volume LXVI, 7 July 1932, Page 7

PRICE OF BUTTER

PATERSON PLAN WOULD NOT WORK IN NEW NEW ZEALAND ' Reasons why the Australian system ol an export bounty on produce, known as the Paterson Plan, would not work in New Zealand, wore explained to the Dominion executive of the New Zealand Farmers’ Union yesterday by the secretary of the Dairy Export Control Board (Mr T. C. Brash). Mr Brash said the Paterson _ Plan was aimed at keeping up the price of butter in the local market. In New 'Zealand the farmer was being asked to sell butter at less than it cost him to produce it. It was an extraordinary thing that the farmer could get more for his butter abroad than he could on the local market. In Australia the Paterson Plan kept up the price on the local market ,but it would be of no use to New Zealand for the reason that New Zealand exported all but onesixth of her butter. Australia, on the other hand, exported only one-third of her butter.

Mr Brash said the dairy producer in Australia was not having a very difficult time. In t'ho best districts this year the Australian dairy farmer would be getting as much as Is 5d a pound for his butter-fat, as against lid or Is which the New Zealand farmer would receive. That was due partly to the Paterson Plan and partly to exchange. For the Paterson Plan to be of any benefit to New Zealand it would be necessary to send the price of butter up so high that the public would not stand for it. The farmer was selling butter in New Zealand at a ridiculously low figure. Mr N. Campbell (Manawatu) said the Wellington dairy companies were at presenjt considering a senenfe whereby all factories would pool their butter and set up a price-fixing committee. He hoped the scheme would be in operation very shortly. Of course of other districts sent their butter into the Wellington district the whole scheme would be damaged.