THE DEAL IN CHEESE.

Otago Daily Times, Issue 17158, 10 November 1917, Page 11

THE DEAL IN CHEESE.

SiH,—l would liko to make a few suggestions to those engaged in the clioeso industry and those who are negotiating a salo with tho Imperial authorities in order that tho business might work smoothly during tho period of the war. It is now widely known that the Imperial authorities' have iixed the price to tho British, public, through tho usual channels, for Is 4d per lb for cheese from Canada, Australia, New Zealand, and tho United States. Tho retailer buys this clieose at Is 2d per lb from tho wholesaler. Tho wholesaler invoices tho cheeso on tho Government forms and receives 5 per cent, if ho sells the cheese in three crate lots. Whcro tho wholesaler is an importer and sells the cheoso in more than three crato lots ho receives only 2£ per cent, instead of 5 per cent., and pays the Government wituin seven days and receives an allowance of 3£ per cent, for shrinkage. Ihe importer receives his proportion on a footing in' proportion with his imports which ho imported in 1916. All tho charges como on the retail public prico of Is 4d per lb, and tho New Zealand farmers should get this price, less all tho churges from the factory to the consumer. . . My suggestion is that tho Imperial authorities confer with the Now ,Zealand Government before they 'ower the pnoo of New Zealand cheese, and once tho price is agreed on to the British public then full particulars of the whole of the. charges, between the cheese factory in New Zealand and the British public, should be shown to the cheese producer and he should got tho difference. As an illustration I would like to say that, assuming that the price has been fixed at 9£d per lb, less 34 per cent, shrinkage and other minor details, all ot which cost' a little money to tho Imperial authorities, these charges in New Zealand, together with freight, insurance, war risk, landing charges, aircraft, and distribution should come off tho prico of Is 4d per lb. All these charges are more or less stationary. Tho only detail which is not stationary w shrinkage, and on this point factories might lose monoy if the Imperial authorities wanted to charge them shrinkage according to last year, because last year New Zealand had very insufficient cold storago, wMe this year she has very good facilities to keep the temperature at a certain degree which -will save a large amount of shrinkage. Of course the shrinkage to the British public in tiose congested times here and in England is heavy, and New Zealand factories should be compelled to build 'any further cold storage necessary provided the Now Zealand Government subsidise them to a reasonable amount. Last year's shrinkage carne to about_ 6 or 7 per cent, before it reached tho British public. It would not be too much to ask tho Imperial authorities to keep the cheese in cold storage and the Government to help to have cold stores built in New Zealand so as to save a big amount of shrinkage, and then even per cent, would cover the loss instead of last year's 6 per cent., and the factories would receive the difference after the question was settled at tho end qf the season. The factories'would also, receive the difference in prico if there was any, and it is not too much to ask the Imperial authorities to harid over the cheese to importers in England, free of cost of handling it to Now Zealand on the ground that New Zealand cheese is limited in price in England. If these suggestions were given effect to, it would mean that a sample account sales, showing the cheese sold at Is 4d per lb to the British public and all charges back to the factory deducted, could be published by the New .Zealand Government in the leading papers m New Zealand. If once the factories were satisfied that nobody was getting undue profit or that there was no middleman exploitation I am sure the scheme would work smoothly from year to year while the war lasts. It will be noticed that in the Imperial authorities' arrangements in England the trade's capital k being used to finance the retail grocers in the distribution of the cheese. I would be pleased to give particulars of this unique system of distribution as arranged by the Imperial authorities. I have already supplied them to the New Zealand Board of Trade, and I hope that that section will get control of the whole of the butter and cheese going to England so that it will be in touch with the Board of Trade in England, and so fix up these matters. I understand that the Imperial authorities have taken over the butter from September 3 last on a fixed prico to the public, and if tho same system* is used for New Zealand butter- as I suggest for the cheese I feel certain that it will givo entire satisfaction to all butter producers in New Zealand, provided, of course, that the New Zealand Government had a voice in the prico to the public of. Great Britain. One hears complaints from every sourco about the ■ high cost of living, and certain sections have asked the Government to reduce the cost of living. Why not start by reducing price of coal from tho Government mines? —I am, etc., . . S. Ttonee. Wellington, November 5.