BUTTER AND BACON FAMINE

Otago Witness, Issue 3414, 20 August 1919, Page 12

BUTTER AND BACON FAMINE

SERIOUS POSITION IN NORTH ISLAND. HON. W. D. S. MACDONALD BLAMES MERCHANTS. (Fbom Our Own Cobbesponde\t.) WANGANUI, August. 16. There is an acuto shortage of butter and bacon along the West Coast and up the Main Trunk line. In fact, there is quite a butter famine, and a number of families in Wanganui have been obliged to go without butter recently. Matters are not likely to improve until the new season's make comes on the market. In view of the shortage up the Main Trunk line Mr R. W. Smith (M.P. for Waimarino) sent a telegram to the Minister of Agriculture pointing out that the shortage of these necessary commodities, coming on top of the railways restrictions was bringing forth the severest condemnation of the National Government's administration. The Hon. W. D. S. MacDonald (Minister of Agriculture} characteristically replied as follows: " The Government has absolutely prohibited the export of bacon from New Zealand for the past two or three years. There is a very great scarcity of bacon in New Zealand and- the only means of supplying the dominion's requirements is to procure bacon from Australia. It' is a remarkable thing that all the business people of New Zealand are complaining in connection with the shortage of bacon. Why have they not procured sufficient stock? The Government never professed to cater for the whole of the foodstuffs of New Zealand. There is barely sufficient butter in the country to meet requirements until the new season's supply comes in. There are certain stocks held, but the various districts which have neglected to put in sufficient supplies now find themselves short. However, I am looking into the matter as far as butter is concerned and may be able to send some to Taihape. Bacon is not in New Zealand in any quantity, and can be procured only from outside. Some of the bacon factories have asked the Government to remove the duty of 2d per lb to enable supplies to be procurable from Australia. This is a matter for the Prime Minister, and I am bringing it before him to-day." WAS THERE AN OVER-EXPORT? CHRISTCHUROH, Au £ ust 16. With regard to the statements in the Sun that an over-export of dairy produce had occurred, Mr Agar, general manager of the Tai Tapu Dairy Company, and a South Island member of the Dominion Butter Conference, admitted that possibly there was restriction of supplies by some of the local factories, but this was the fault of those engaged in the industry. The Dominion Butter Committee had in a previous year gone' very closely into the question of supplies required for winter consumption, and had arrived at the opinion that it was necessary to hold, on-March 31 each year, 60,000 boxes of butter. This quantity, together with the autumn "make," should allow for ample supplies for everybody. The Government did not prohibit further export of butter until the "make" after April 16, and he understood retained only 20,000 boxes previous to that date. No doubt the Government, in permitting export, acted under the assumption that the year would be a normal one as regards the autumn make, whereas drought conditions existing in the Auckland province and the sudden closure of the season generally throughout New Zealand brought about not only a shortage of factory butter, but also of dairy butter. Factory butter, therefore, had a call made upon it owing to the shortage of dairy_ butter, which had accentuated the position. In' any casey the shortage locally would exist for a matter of only two or three weeks, when it was expected relief would be obtained from Auckland. With regard to cheese or butter held for export, the Imperial Supplies Department would always release back to manufacturers supplies needed for local consumption on extra payment of 7 per cent, interest on the amount returned, while the trade as a whole certainly obtained higher prices on supplies exported, ihc individual manufacturer did not, as any excess in the case of butter on 44s 4d a box (Is 6d per lb) was retained by the Dominion Butter Committee _ for the equalisation of local and export prices. The difference in the subsequent return to the industry on the extra quantity which should have been retained to cover the present shortage would not be great. As to the early season's make, there were no ground*

for the suggestion that butter might be immediately exported, for until the ''make" overtook the local demand this would not be done. The Butter Committee had always received the co-operation of the factories in carrying out the policy unanimously accepted by the industry in the Dominion Conference—that local requirements must receive first call. SUPPLIES IN STORE. INVERCARGILL, August 18. The manager of a . local dairy factory jtates that on August 4'•■"there were 10,440 boxes of butter in the stores in the dominion, and only 703 in the South Island, 618. being at Dunedin and 85 at Lyttelton. Ho said that a low estimate •of the present dominion consumption was 5000 boxes per week.