FREE MARKET WANTED

New Zealand Times, Volume XLVI, Issue 10562, 13 April 1920, Page 7

FREE MARKET WANTED

FOR NEW ZEALANDeBUTTER UNPOPULARITY OF IMPERIAL COMMANDEER. BUTTER COMMITTEE AND PREMIER. The Prime Minister informed a "Times" representative yesterday that inquiries had been made of him by the Imperial Government, with regard to the terms, if any, upon which tho New Zealand butter producers will soil to Britain their exportable surplus of butter for 1920-21 season. "I believe,'' added Mr Massey, "that the Dominion Butter Committee wants to meet mo to discuss the matter about Friday next." No terms had been mentioned- to him, he stated, by cither sido as yet; and, of course, ho could not mention them if they had been. It was simply an inquiry by tho Imperial Government as to' tho terms on which tho coming season's output could be secured. UNTIL JULY 31st. The existing Imperial contract, or "commandeer," For the) [purchase of tho exportable surplus of the Dominion's butter output holds good till July 31st next. The operations under the commandeer commenced in November, 191", since when 1,797,430 boxes of butter had been purchased by the Imperial Supplies Department on Imperial Government account, and on March 31st last, theroi was a further 77.482 boxes in store ready for shipment. The amount paid by the Imperial Government to date for New Zealand Diitter is upwards of £8.143,000. Tho prieo paid has ranged from 157 s per cent., for first-grade butter in the first season, to 191 s per cwt in the 191 S-19, with proportionate prices for other Grades. In the first season the Imperia! Government also shared with tho producers 50 per cent, (amounting to £308.000 )of its profits on the sale of butter. DAIRY FARMERS WANT FREE MARKET. 'lt is understood that the New Zealand butter makers are not inclined to favour the continuation of the commandeer after July 31st, their desire being to secure a free market, and so obtain the present high world's price for their butter: During: the war, they point out, the British Government recouped itself for the high prices paid for Danish and other Continental butter during that peijuxl by tho low prices paid for New Zealand and Australian buttor; and now that the war is over, the New Zealand producers, i who always looked askance at this system, are. very unwilling that it should continue. Failing the Tenewal of the commandeer, tho British Government might, of course, control the price of all New Zealand butter landed in the Old Country; and in that case, it is pointed out that the only resource for tho New Zealand producers would be to endeavour to open up foreign markets for «their butter, practically all of which has hitherto gone to England. THE PRICE' OP BUTTER. A point of greater interest to the great bulk of Now Zealanders, no doubt, is as to the price of butter in the local market. Consumers are anxiously asking What will be the result on the local price if the dairy farmers win their free market and secure the extreme world's price at the present time. Will the Government, it is asked, subsidise the butter-makers, as was | done last season, to supply the- New ! Zealand market at tho present price? WHAT PRICE MARGARINE? Meantime margarine-producers, scent a possible opening in the Dominion, as the following extract from a circular recently sent out by a leading New Zealand exporting house shows:—"We have been wondering whether if butter prices in New Zealand were increased very much, the use of ' margarine would be encouraged out here as well as in Canada. /The position might be forced upon us. When one notes that the average, price of Canadian butt*T to producers was 55$ cents (normally 2s 4d per pound) for the season, it can easily bo imagined that, especially in tho big centres of population, oleomargarine would meet with an increased demand.''. *