FREIGHTS ON DAIRY PRODUCE.

Otago Witness, Issue 2675, 21 June 1905, Page 11

FREIGHTS ON DAIRY PRODUCE.

The following comparison made by Mr J. G. Harkne&s, secretary of the North Island Dairy Association, between the reduced freights on dairy produce jurt arranged with the New' Zealand Shipping Companies under the extended contract, and the te-rms of tho Victorian and New South Wales agieements, will be read witih interest at tho present juncture: —

" The Victorian contract's special feature is that butter and cheese are to be carried for three years, with the. option of renewal by the shipping companies for another year, at 3-Bbh& of a penny net weight. This low rate is its only redeeming feature. Its disadvantages are a<s follows :—Th-e: — Th-e passage via South Africa will occupy on an average 60 days, the ports of call after leaving the port of departure are eight, and the sihinping companies only bind themselves to find space 'to the -extent of 60 per cent, of the insulated space on their steamers.' The butter tendered for shipment shall not exceed 30de,sp Fahr., and will be carried ai a temperature not higher than 20deg. Beyond this shippers, after space is booked, must \say ' dead freight ' if butter space is not filled, and. lastly, if in the aggregate half of the total quantity of butter exported from Victoria is not shipped under this contract, it is cancelled.

" Everyone of thes? conditions is objectionable. Take first the length of voyage. ' Suppose two steamers leave at the same dafce v say, 6th November from Wellington, and the other from Melbourne. Under ordinary circumstances the New Zealand steamer would reach London on 18th December, and last year the butter would have realised at that time 106s. The Melbourne steamer would reach the same port on st.h January, and butter vra-s then 100s. Is it not clear that time is the all-important consideration, and yo r ii can pay dearly for even, low freight, especially in a falling market? Secondly, look at anothe* weak spot — payment of ' dead freight ' A shipper reserves, space for 6000 boxes, etc., and at date of sailing only 4000 are shipped. The rcsuH is that he pays practically 8-16ths of a penny per lb on the shipments. " The New South Wales contract is for one year, with right of renewal on the part of the shipping companies. The length of passage is 42 days, and the rate Is lOd per box for butter, which is nearly -7-16ths of a penny, and oheese 12-16ths of a penny net weight. Dead freight is also paid under this contract by shippers, and the temperatures are the same as the Victorian contract. Undoubtedly this is the better contract of the two. I now proceed to compare it with New Zealand. From Ist September, 1904, to 30th May. 1905, the contract steamers carried 584,009 boxes butter, equal to 14,600 tons; now, the proposed reduction for tlie next two years us 2-16ths of a penny, which equals £1 3s 4d per ton on the present rate of 12-J6ths of a penny, or a saving of £17,033 on last reason's output. The rate for cheese is to be 8-16ths of a penny net weight, and no primage. In the above period we shipped 62,780 cases, and the reduction now proposed will save Is lid a case, qual to £6020, or a gross of £23,053. With the probable increase of the next two years it will amount to between £25,000 and £30,000. For the last three years, at 9-16ths of a penny, the reduction on butter will be. £25,550. on cheese £6020. This is practically a saving of £32,000, and, with the anticipated increase, it will amount to close on §45^000.^ Now, if we compare the New South Wales contract with New Zealand, we find the following: Oheese in th© former is a farthing more. The latter has the advantage. Butter in the former is Is lOd j per T)bx, the laCter 2s 74d. Coastal freight and transhipping charges are- paid by the shipping companies her* at the rate of 4d p&r box. This leaves a balance in favour of New South Wales of lid per cwt, or 11s per ton, as against New Zealand. "Now, can 11s per ton be regarded as a serious handicap for the producer? When you consider that the Commonwealth exports annually nearly 25,000 tons of butter and New Zealand less than 15,000, the many ports from which we collect our produce as against two in the Commonwealth, the higher price paid by steamers for ooal in New Zealand, 21s per ton, as against 8s in Australia, and the distinct advantages of our contract, I unhesitatingly affirm that