THE OTAGO DAILY TIMES TUESDAY, SEPTEMBER 26, 1933. DAIRY PRODUCE EXPORT

Otago Daily Times, Issue 22068, 26 September 1933, Page 6

THE OTAGO DAILY TIMES TUESDAY, SEPTEMBER 26, 1933. DAIRY PRODUCE EXPORT

The mission which has brought Mr Thomas Baxter, a representative of the National Farmers' Union of England and "Wales, to New Zealand is to discuss with the primary producers the position that has arisen in regard to our export trade. The farmer in the Dominion may still cherish the hope that the quantitative regulation of his exports of butter and cheese may be avoided, but how the application of the quota principle may be staved off has not been made apparent. The exchange of views between representatives of the rural industries in Great Britain and NeAV Zealand respectively may serve to clear away any misunderstandings that exist, and conduce to a better mutual appreciation of the problems that confront the producers of the two countries. It does not, however, appear likely that it will result in the discovery of any alternative to a restriction of exportation. Mr Baxter has shown no disposition to hold out illusory prospects in that direction. Thus far he has been outspoken in declaring regulation to be inevitable in the case of the exports of New Zealand dairy produce to the United Kingdom. The rehabilitation of British agriculture, he has pointed out, is regarded as a necessary offset to the losses suffered by Britain in the matter of markets for her manu-

factored goods. The force of these representations is manifest. The Dominion producers must recognise as unassailable the argument that, if primary production in Britain is to be increased, farming must be made more profitable. As Mr Baxter has emphasised, this end cannot be achieved and the Home producer cannot be placed in the position which he is entitled to occupy on his own market, if that market is glutted with supplies from overseas. A saturated market is of little use to anybody. The New Zealand producer may regard the recent hardening of dairy produce prices on the London market as a good augury for the prospects of the trade, but Mr Baxter has expressed very definitely the opinion that this has been only a temporary manifestation due to an exceptionally dry year in England. The regulation of export supplies is looked upon as a necessary step in the raising of the level of market prices. It is to be gathered that it is to little purpose that the New Zealand producer hopes for the improved prices without the regulation of supplies. It has not been shown that preference can be effective in the raising of prices otherwise than through such regulation. Under the Ottawa Agreement the quota cannot be applied by Great Britain on Dominion dairy produce until 1935 without this country's express consent, but it is open to New Zealand to accept the quota before then, and take a voluntary share in the working out of a plan which may avoid embarrassment later on. No doubt, as Mr Coates suggested a few months ago, the correct attitude for the producers of this country is to get down to details and examine the possibilities of the quota, accepting the fact that conditions have changed and that new conditions call for new ways of thinking. Whether the application of the quota will mean loss is a question that is apparently not yet answerable. Mr Baxter has suggested that, if New Zealand should lose in the quantity of her produce exported, benefit will accrue to her in the better prices obtainable in a regulated market. Some advice tendered by Mr D. O. Williams, economist at the Massey Agricultural College, in a paper read by him at the recent Grassland Conference at Christchurch, seems very pertinent in the circumstances that have arisen. It is to the effect that New Zealand producers should realise that, if quotas come, it will he impossible to deal with them except on terms of the fullest co-operation amongst themselves. " The general application of quotas, whatever else it portends," observes Mr Williams, " means the death of unorganised, competitive, individualistic production and marketing. If our customers plan the volume of their orders for our products we must plan the organisation of production, processing, and marketing." ;• -