BUTTER MARKETING

New Zealand Herald, Volume LXXII, Issue 22161, 15 July 1935, Page 8

BUTTER MARKETING

Two points concerning the marketing of butter, one having to do with the British and the other with the local market, were raised by Mr. A. J. Murdoch, chairman of the Dairy Produce Board, in addressing a conference of producers at Gisborne on the board's policy. Both are questions w;hich should be approached with the utmost caution at the present time, owing to the expiry in November of the current dairy agreement with Britain. Mr. Murdoch spoke first of the negotiations with Australia with the object of reaching an agreement for the orderly marketing of butter exports. The present "gentleman's agreement" had not been fully observed by Australia, and New Zealand was seeking a binding arrangement, properly drawn and signed, for the coordination of marketing. The Dominion should consider very carefully before she enters any such scheme. People on the other side of the world have to be constantly reminded of the separate political identities of New Zealand and Australia. They see them bracketed in the meat negotiations, for between them they supply the bulk of the frozen mutton and lamb to the British market; with Denmark they are far and away the largest exporters of butter. If Dominion and Commonwealth are shortly found hand in glove in operating a joint dairy marketing policy, British people will have ample excuse for failing to distinguish between them. The effect would be most prejudicial to New Zealand under several heads. Tn the particular case of butter, .the Dominion would be associated with the Commonwealth, whose policy of exploiting the Australian consumer in order to -subsidise the exporter is regarded with marked hostility by British dairy farmers. Their attitude receives wide public and political support, opinion being ranged against the exposure of British producers to a form of unfair competition rightly stigmatised as dumping. New Zealand should not allow herself to become mixed up in marketing arrangements with a country open to such charges. For like reasons she. should avoid any local marketing plan which savours of the same thing. The Dairy Board, as a result of its inquiries in various centres, is convincod of the difficulties in organising local marketing equitably. Mr. Murdoch hopes an amicable arrangement may be reached. That is certainly desirable on several grounds, and, particularly, to avert any suspicion in Britain of another Patterson scheme*