BUTTER FREIGHTS

Otago Daily Times, Issue 22356, 1 September 1934, Page 21

BUTTER FREIGHTS

AUSTRALIAN AGREEMENT

A REDUCTION SOUGHT (From Oue Own Correspondent.’ SYDNEY, August 25. It has for long been a sore point with Australian butter exporters that the freight charged on their produce to London has always been higher than the rate ruling for New Zealand. The matter has been discussed often enough with the shipping companies, but the butter people say that the arguments that have been brought forward have failed to convince them. They think that the Australian rates should be lower, if anything, and, failing that, at least equal. New Zealand butter is now carried to England for £1 lls cheaper than Australian, which means that Australia is severely handicapped in the fight for a greater market. It is claimed that the additional charge on Australian butter imposes a penalty of more than £150,000 a year on the exporters, who, already, are finding it hard to make both ends meet. When overseas freights were last discussed, the shipping companies were anxious to stabilise their business, and to that end proposed agreements over a long period—three years at least. Under the impression that this would mean concession of some sort, the butter interests were willing to agree, hut there was strong opposition to the proposal from wool and fruit exporters. In the end the butter people were defeated, and 12 months’ agreements were entered into as far as other produce was concerned. The butter agreement was extended to the end of August, and will soon come up for review. The fruit interests have since withdrawn their opposition to a long-time agreement, and, with this in mind, the butter exporters are hopeful that they will be able to come to satisfactory terms with the shipowners at a conference to be held in Sydney soon. Under the present contract the freight on butter is £8 a ton, with a rebate of 7$ per cent, when the freight is paid. The new agreement offered by the shipowners is for £8 a ton, with a rebate of 5 per cent, provided not loss than 60,000 tons of butter is shipped in a year. Last year more than 100,000 tons of butter was shipped from Australia. The new offer has not found favour, and the New Zealand freight rate will again be used as a lever in the negotiations with the shipping companies.