BUTTER EXPORT.

Otago Witness, Issue 2201, 7 May 1896, Page 6

BUTTER EXPORT.

MU TAVERNER'S J*EW SCHEME. It was stated in (he Argus of yesterday that the Minister for Agriculture expected shortly to be in a position to make a definite announcement concerning a plan of "financing" butter factories— that is, of making advances agaimt butter exported to London under Government supervision Yesterday afternoon Mr TUverner htated that he had just had an interview with the agents for tbe Aberdeen and Luud's lines of steamers, which have secured the Government contract .from the Ist of next month for ihe carriage of perishable products to England in pUce of the P. and O. and Orient Companies, and that a most satisfactory arrangement had been come to in the interests of the producers. This was that the agents for the Aberdeen and Lund's lines— Dalgety and Co., Limited, and Messrs J. Sanderson and Co.— had arranged to make advances on all butter forwarded to the Government refrigerating works in Flinders street for export as soon, as its quality had been approved of by the Government dairy expett. When the butter has been branded with the Government stamp guaranteeing its quality, the agents will make the advances to the butter factory directors, or, if they prefer it, to their agents in Melbourne, pending its sale in London. Only the ordinary rates of exchange between here and London will be charged, and interest will not hes.charged on the advance until 60 days after the butter has been landed in London. After the expiry of the 60 days interest at the rate of 5 per cent, will be charged. The advantages which the Minister claims for this arrangement are, first, that it will give the Aberdeen and Lund's lines a direct interest in tho butter placed on board their steamers, and cause them to see that every care ia taken to land the

butter in good condition in London ; and next, that it will give the butter factories, so far as the' export trade is concerned, an opportunity of dispensiwg with agents or middleu.cn in Melbourne. Furthermore, Mr Taverner points out that the account sales of the butter in London will, under this arrangement, be forwarded thiough the shipping companies mentioned to the butter factories, so that they can see for themselves what the butter realised, and not be dependent on the figures sent to them by their ag<>nt-. The Minister was careful to point out also that any individual butter exporter or dairyman could .avail himself of the arrangement which the Aberdeen and Lund's lioes are' prepared to enter into with shippers of butter, and that it was not to be confined to butter factories only. Mr Taverner intends this week issuing a circular to the vsriou* factories and exporters of butter, giving them official intimation of these "very liberal terms," and asking them "in their own interests" to snip their butter in future by the Aberdeen and Lund's lines. The extracts form a basis of discuttioa on several points. Mr M'EwHn's description of what our Government department are doing is as fairly accurate as might be expected. Be it remembered that this is only after all a reporter's summary of what the speaker said. The full report would no doubt show that Mr M'Ewaa, of whom all New Zealand dairymen have a high opinion, has exp'aiaed the/ whole, system in his usually able way. I have no fault to find with the work of our Government in the help it has given to the dairy industry, except that perhaps it does not go far enough, and I am in favour of much additional work and expenditure on its further development) and for some time I hope that the expenditure on the grading and refrigeration of butter for export will not be stopped. I don't see how GovernmeLt grading oould be ' of much use unless carried on as at present, nor do I think that the Government could have any hold on exporters unless under the existing system. There is not; the slightest doubt that the name and quality of New Zoalaud butter has been improved on the British market by the action of the Government under the provisions of the Dairy Act during the past two years. Prices have been low, no doubt-, and producers may be disappointed, but I am certain that the whole trade would hare been in a much worse position, and perhaps would have collapsed altogether, but for the grading and refrigeration of. butter by the Government. Improvements in various directions may be mad*, bub if Mr M'Ewan recommends the stopping, of the present syettm of 000 l storage at Government expense prior to shipment, I do not agree with him. As to the grading, various improvements ■ might be made. In the first place, I don't think the brand "N.Z.," or New Zealand* sufficient, but that all butter or cheese should •bs branded Taranaki, Auckland, Canterbury, .or Otago, accoidiog to the prov'noial district in which it is made, as there is, naturally, a decidtd difference in the produce, which is recognised by experts here, and woyld later be recognised in other mtrktts. At present it is much to our detriment that all our produce — and some bad stuff, no doubt, not our produce — is sold on the London market under the one name "N.Z." The maxim of "the strength of a cable btiug that of ill weakest link" is alwajs made to app'y by buyers und6r the present system, and our bfsfc makes suffer a lowering of prices accordingly. The different district makes of Canadian cheese and butter are known and recegnired on the British markets now, and quoted in all price lists, and ours should be the same. I agree with Mr M'Ewan as to Government giving greater assistance on educational lines, but not in withdrawing help or support in other directions. It is one thing to make fir&t-class stuff, but wbat cse will that be if a shipping ring closes the gates of by a shortsighted policy of screwing up bo the highest point pos»ib'e the rates of freight; ? I think, therefore, that; Government should assist any ccmbina- i tion of producers against all such monopolies. Admitting that we have to make prime goods as a first essential, there is ! the question of transit; to markets and the ' proper disposal of our goods when there. AU , other countries are waking up to this at tbe present time, and till ju3t lately our own Mr Henry Reynolds, late of Auckland, has been in Argentina looking after the butter trade there with a view to obtaining business, as he and others are alive to the fact that it is a comirjg butter country, already sending 100 tons per week of gradually improving quality to the London market. Denmark, Canada, and other countries have spent and are still spending thousands, not only on educational, but on the Other lines which . I advocate our Government ■

, should pursue if- only iv self-defence and to. help us keep the ground already gained. With regard to Mr Taverner's scheme I don't quite believe in his views, as it i* assuredly very uawiee for producers to throw theinaclves into the hands of either the shipping companies or the agents of the shipping companies (our New Zealand meat trade is at present to a far too great extent in the hands of and controlled by the shipping companies). Melbourne producers must be in a most benighted condition if some of the things urged as he?? ben* fits are really new to them, for I think Now Zealand producers have always had these so-called advantages in the matter of exchange, fee. and ac" count sales from London agents. The Victorian producers must have been bled considerably, ! and I have no doubt this is the case. In fact the whole past policy of the Victorian G vern. i coent «ia the way of bonuses of 3d per lb on | butter put money in the pockets of astute speculators, and noae in those of the producers. Thii cannot be said of what has been done ib New Zealand, for all dairymen h*ve had the j full benefit of the Government expenditure if I they liked to avail themselves of it. Some have S been too high up on the seale — or. thought < i themielves so— to accept of the help given, bat < it has been there for them, if they desired it, all the same. ' ' , There is one point in Mr Taverner'g scheme which is unquestionably in a beneficial direction, and that is that the sale of Victorian produce would, if the scheme were unitedly J adopted, result in the concentration of the selling, and thus do away with the ruinous results of the multiplicity of selling agents, which has had so much influence in bearing down prices. ! Ab premised lasb week, I interviewed Me J. R. Scott, the secretary of the ' National Dairy Association, who givea me the following as his views. I think his proposals are good, but I am somewhat doubtful as to the power or willingues3 of factories to combine as he suggests. I really do not see why they should not do so, h^wtver. Under his ' scheme no oue would have a special right to grind his axe, but the axes of all might be 1 ground at the same time, and a considerable saving to all would result, in addition- to a fuller knowledge of the trade and its requirements. ' I have long been of opinion th*t the National ' Daiiy Association could and should do a great deal more for the benefib of its member.a, and j will gladly give you an outline of what I think | it should do. Flessa remember that .1 am giving you only my own opinions, and that what I say in no vray commits my committee or the members of tbe association, who have nob yefc fully considered matters. Up to date I may safely say that the association has proved useful, and I think this is generally allowed. It forms now a basis of i combination, and all that is wanted is for members to make it more useful to themselves by agreeing as to what further work it shall undertake. My ide* is that the association shou'd uuderfcake the whole work of the pale and consignment of its members' produce — bhat the «eorefcftry or manager should ba the servant; of the raemb* va of the association, »n-l devote his whole time *o their work. An to saUs, they could be made by the manager by Auction or otherwise weekly for local consumption, and at each fortnightly shipment nt Port Chalmers for London buj era, the members placing what reserve they think proper on their produce, or leaving it to a local committee of management to regulate the prices. With regard to consignments the association should have its own selling agents in London, Liverpool, Manchester, Glangow, and other large centres as might be deemed advisable. These agents should conQne their selling to their own districts, and be in touch with one another. In London thera migbt be two firms reUc^ed to sell the association's produce, and in the other centres one each. We can, I knew, command j tbe services of such firms, and they will be only too glad to place all needful funds in the hands of the association for making advances on. such produce as is being consigned to them. Producers have io the past suffered much from the New Zealand produce being scattered among a large number of selling agents, many of whom, it seems to me, only compete as to who phall quit the produce quickest and at the lowest rates. Thii year neither cheese nor butter need have been sold at such low rates but for the competition among selling * gents. Some consignments have been sent to Glasgow and other places, but I find that in many cases these are being sold in London more than in Glasgow, all helping to keep down prices. By such an arrangement commissions could be considerably reduced, perhaps by about onehalf. AH the produce would be sold as what it is, and the association should send one of its own members, at first at any rate» to make

arrangements with agents to supervise the sales and to do all possible to puih and advertise tha association's produce in the British market ; and al*o to report on the condition of the produce of the different factories vrhen landing ia London, and of cr urae to be in touch with tho association here, reporting regularly and communicating by cable when advisable. There is no need for the acsoctation to blossom out into a big financial company, as all the funds required wou'd be rased by a very moderate subscription from its members, and if all commissions and discounts that may come from sales, &0., are placed to the credit of "tha association there would be funds enough to carry on a good deal of valu»ble work in other directions. AU advances on eh'pmtnts would be provided by the firms who are selected as agents in the different centres, and members would be quite independent of banks or financial institutions. If nil will combine to work as an aiieoiated body under such lines I am sure much good can |be done. The ruinous competition amoDg sellers both lccslly and in -LoDdon would be | stopped, the shipments regulated, &o. I think I that if united members would have the full support of the Government, who would perhaps see their way to help more even than in tha I past. i The association fhculd work, as before, in perfect harmony with the Government Dairy department— the Government Dairy departi ment_ undertaking the' teaching, instruction, and inspection, while the commercial side o£ the business was thoroughly attended to by a strong and united body of the producers themselves combined under the associatkn. I have only outlined what I advocate, and there are many other matters that coma under my notice as stccet&rv of the association which could be improved. We have a large number of very active members} but as " Drover's Dog" said in last week's Witness, we all want waking up, and I hope our members will give these matters serious consideration, for I am sure that unless we take some combined action bs indicated .matters may become worse for us infctetid of better. Members will, I hope, be prepared to discuss matters and give instructions to their committee at the annual meeting. It will be seen from an advertisement in another column that the Wellington A. and P. Society offer point prizes of £50 each in the Ayrshire cattle and Romney and Lincoln sheep classes. Aspedal entry of £5 is pajable— £2 on May 21, £2 on October 1, itnd £1 on October 15, ab which time particulars of entries must bo made to the secretary, accompanied with the ordinary entry fee. A prize of £50 is also gffered to the competitor in beef breeds and fat cattla who ecores most points in tbe aggregate of all olasies ineutioned under this heading. The Canterbury A. and P. Society's winter show takes place on the 20th, 21st, 22nd, and 23rd of this month. Intending competitor* must send entries at oncftto the secretary, and I hope to see OUgo and Southland exhibiting', and that Canterbury will reciprocate at our owa great winter show on tbe lOtb, 11 >h, and 12th ot Juiip, entries for which should not be da* layeJ.