THE PRICE OF BETTER.

New Zealand Herald, Volume LXI, Issue 18896, 19 December 1924, Page 12

THE PRICE OF BETTER.

FEBRUARY SHIPMENTS.

MR. GOODFELLOW'S VIEW.

REPORT FROM LONDON OFFICE.

[BV TELEGRAPH. —OWN CORRESPONDENT.]

HAMILTON. Thursday.

A further statement concerning the butter position was made to-day by .Mr. William Goodfellow, (managing director of the New Zealand Co-operative Dairy Company.

"I have now received a cabled reply from our London manager, Mr. <1. B. Wright," said Mr. Goodfellow, "in response to my request for information concerning Monday's report in the Herald of surprising offers alleged to have been received from London buying houses. In that report two prices werG quoted, viz., Is f.0.b., New Zealand, for butter now on the water, and Is 6sd, f.0.b., for butter to bo supplied from New Zealand in February. It was this latter price which occasioned astonishment, because it was so out of keeping with our knowledge of tho general butter position and expectations of lower prices for the heavy shipments duo to go forward at that time. Mr. Wright's reply is as follows

"Referring to yours of 15th, there is littlo offering on butter afloat or for ship ment during January-February. Nominal quotation for butter afloat is Is ojjd, f.0.b., New Zealand For shipment during January and February, some London houses aro reported to be offering Is 4^d., f.0.b."

"We therefore reach this position," continued Mr. Goodfellow. "The Herald on Monday gave prominence to a report that buying offers had been received in New Zealand for February shipment at Is 6§d, f.o.b. Subsequently Mr. Aicken, the selling agent of a local dairy company, stated that it was his factory which received such an offer last week. No Auckland representative of any London dairy produce house knew of any such offer and, upon inquiry, they agreed there was no foundation for any such figure. Sydney and Melbourne trade circles nave niso expressed surprise and further, Mr. Wright, who is in daily touch with the whole circle of dairy produce distributors, after careful inquiry, states that, instead of Is 6gd for February shipment, London merchants' extreme idea of vnlno for February make is Is 4.U1. f.o.b. —practically 2d per lb less than the alleged offer. There is here a discrepancy of fact which m (ho interests of the producers must be explained. Mr. Aicken says he received' this offer of Is for February .shipment, f.0.b., last week. No other •;onipany in New Zealand apparently has received any genuine ofier anywhere approaching this figure. Mr. Aicken has taken it upon himself to publicly question .ny company's policy. I must therefore, in self-defence, definitely challenge Mr. Aicken to publish the actual terms of his offer in full and produce the original cablegram to either the chairman or the manager of the Auckland I'aimers trucking Co., Ltd. ' I have alreadv outlined in full tietail the information which leads those most close!v in touch with export busi ness to adopt a conservative view of U.o future of tho butter market. That information leads to tho genuine expectation of lower prices and even though this is to he regretted, it is much better to know the true position. Any report fading producers to expect a return which •he market will prove incapablo of yielding is calculated to do a very great deal of harm. Evidence of this is already available in numerous requests from the company's cheese factories to hold meetiigs of suppliers to consider closing down and reverting to butter manufacture. As a matter of fact this would entail considerable loss and be an error of some magnitude. Producers and the public," concluded Mr. Goodfellow, "are reasonably entitled to genuine information in connection with market reports and the responsibility now rests upon Mr. Aicken to justify the publication of his statement."