BUTTER AND CHEESE

Otago Daily Times, Issue 18513, 25 March 1922, Page 6

BUTTER AND CHEESE

LONDON MARKETING CONDITIONS POOL SYSTEM SUGGESTED. Mr George Lamb (secretary of the South Island Dairy Association) has received the following communication, dated London, January 26, from Mr G. D. Macfarlane, a New Zealand member of the Price Fixing Board of the New Zealand Producers’ Association in London ; Unfortunately I was unable to write you bv last mail, and now lake the opportunity of giving you my impressions of this end, so far ns I have gone I arrived here just when the market was at its lowest, and. frightfully demoralised, so much so that I got a shock when told of what had happened since I left New Zealand. The whole position seemed to mo so unreal that it was some days before I could grasp what had, and what was happening. During our tour of the factories I mentioned how the market for our produce was rigged, and to have the unique exjiefience of seeing this dohe was quite an eye-opener to me. To-day we have a position developing that must mean further violent fluctuations of the market. Butter is jumping every’ day. and let me say here, this is more likely to hold than cheese, although the consumption of cheese is, like butter, an unknown quantity as compared with prewar consumption. Basing the quantity of cheese arriving on the pre-war consumption, it sliauld fall in price. Of course, we do not desire to see prices fall, but the want of a guide so far as consumption is concerned will mean these violent fluctuations recurring for some time. Now, after watching the whole position carefully since*l came here, I have come to the conclusion that New Zealand producers must come together more closely in the marketing of their produce. You .have the competition of agents soliciting for outputs at your end. At this end there is (he chaotic competition amongst sellers to soil, and the merchants here only require three or four of them putting their heads together to smash the market at any siege. You had it in connection with butter recently. That was an organised arrangement. to depress our new arrival stuff, to allow of their buying Government stocks at their own price. Immediately they got this into their hands, they at once let the price of butter up. and it continued rising until now. It is around 145s—a rise of 30« inside a fortnight. Butter should never have fallen to that low price but for the manipulation indulged in by these people, and until wo have the weight, of produce in our own hands, either by the Marketing Association or a pool of all the factories, we cannot stop a recurrence of these things. I care not how it is done, whether through us or by way of a pool, but certainly if the" producer is' alive to his own interests the present methods must be abandoned. It might be advisable to have a pool with Government guarantee to the banks for advances, and the documents lifted here by merchants nominated by a board which would, in conjunction with the merchants, fix prices, such boards to be elected by producers in New Zealand. This may seem to you as if I had lost faith in our organisation. Such is not the case. I am open to accept any scheme that will be of immediate benefit to our people in New Zealand, and if the pool would mean their all being in it then I am satisfied that the results would ensue. It would also dfisarm criticism as far as the C'.W.S, is concerned, while they could b© included in the larger scheme. The advantage to the producer would bo that the market price would 1c under their control, such as operates with Denmark. You -would have a very big saving in eliminating the agents in New Zealand, and, further, the commission f o merchants here would be much less than at present. Altogether it seems to me that the matter should receive the serious consideration of factories. There would also be the advantage of having prices fixed by your representative here, who would be in constant touch with the market. They would have a better knowledge of the market than the numerous merchants handling our produce at present, who are all trying to find out at what price the other fellow is selling, and making their price accordingly, and often forcing sales at lower prices owing to/their financial weakness. The fact of our having the produce in our own hands would not permit of their rigging the market—that is, of course, with live men here, representing New Zealand interests. This division amongst factories plays into the hands of the merchants here, and the only method of New Zealand producers getting a fair deal, in my view, is the pool system. The matter, of course, is one for the factories./ Mr Ellison and myself have discussed the matter in all its bearings, and at present this is the only solution of the problem that presents itself to us. SHIPMENTS OF DAIRY PRODUCE.' Ijjjpacc has been arranged for the following shipments of butter and cheese : BLUFF. Corinthic, 9500 crates cheese, 8174 boxes butter; approximate date of shipment, March 23. Dorset, 12,000 crates cheese, 2000 boxes butter; approximate date of shipment, April 14. Devon, 2800 crates cheese; approximate date of shipment, April 30. DUNEDIN. Remuera, 5503 boxes butter. Dorset, 2000 boxes butter; approximate date of shipment, April 12. Tainui, 3400 crates cheese; approximate date of shipment, April 25. LYTTELTON. Durham, 1000 crates cheese. Remuera, 2000 boxes butter. Tainui, 1000 crates cheese, 2260 boxes butter; approximate date of shipment, April 20.