DAIRY PRODUCE TRADE

New Zealand Times, Volume XXXVIII, Issue 8750, 4 June 1914, Page 8

DAIRY PRODUCE TRADE

SBUTH ISLAND ASSOCIATION CAUSES OF DECLINE IN BUTTER PRICES. - INSURANCE AND MARKETING. Press Association* DUNEDIN, Juno 3. In moving thq adoption of the annual report at tho meeting of the South Island., Dairy Association, the chairman, Mr D. Ross Hunter tEdendale), said 'the season had been splendidly prosperous. The usual rule was for Home buyers to begin operations each season in the North Island. Ihcy had to biiy from perhaps 150 factories before coming south, and by that time the-keen- -edge of their demand had been dulled; but this year buyers started in the South Island, and after strenuous negotiations, Edendalo - -one of the first factories to sell—-had accepted 6Jd per lb on trucks for the cheese output. Ho believed Edendale’s acceptance of, that price had resulted in the good prices that had been obtained generally. He did not believe in consignment, for so many things were liable to happen. Mr Hunter referred to-the prices that had been obtained for butter. They had not been so good as they would have liked. Three matters had affected the market. The first , was the strike, which caused four steamers to be kjld up. These vessels practically left at the same time for Home, and glutted the English markets. ’ Prices had dropped and never recoveredThen, at the 1 back end of the season, the British and European dairymen had experienced a very good season, and heavy- supplies of butter were placed, on the market, helping; to make the other glut. The last cause was the enormous output of margarine. So far as the balance-sheet was concerned, they were in credit to the extent of £IOO.

The meeting discnssed the matter of fire insurance. It was stated that the insurance commission received by the association amounted to £BB 12s 2d. There were 95' factories in the association, and out of these only 22 had insured—and in some cases - only partially—through the association. One speaker said that through want of cohesion among the dairy factories, nremiume bad been raised from 10s per £IOO to 22e 6d per £IOO. Insurance companies could surely reduce the present high rate and still make a profit. ■ ■ Mr-Bolt said it might he interesting if he were to tell the meeting the experience of his company. Some years ago, when insurance went up 25 per cent., his company considered that the thing was getting tod stiff altogether, and decided to set apart £looo as the nucleus Of an insurance fund. That fund was now £4OOO, and during fifteen or sixteen years they had lost £4OO by fires and saved . £3OOO in insurance.

Messrs W. Fisher and J. Brasch, ot the National Dairy Association; spoke regarding suggested improvements in the method of marketing New Zealand dairy produce, especially in oversea markets. At a recent conference, it was suggested that Home marketing be. confined to open consignment and selling,; and it was recommended that a limited liability company be formed with a capital of not less than £IOO.000. The board Of management should be in New Zealand and another board in London should act in an advisory capacity. The executive of the South Island Association was instructed to inquire into the scheme, and Messrs Foster and Hill, members of the executive, were appointed to attend a further

meeting to be hold in Palmerston North on June I7th. ■ It, was decided to take steps to see that freights on butter and cheese bo universal throughout the Dominion. A motion in favour of tho erection of cool stores at Bluff was carried, and stops axe to be taken to push the' work ahead.

It was decided to hold the annual meeting at Invercargill next year. The executive was recommended to bring t .'dor the notice "of the Education Department the desirableness ot having a chair of agriculture endowed in one or more of the New Zealand colleges.