BUTTER OUTLOOK.

Poverty Bay Herald, Volume XLVII, Issue 15710, 29 December 1921, Page 3

BUTTER OUTLOOK.

INDUSTRY HARD HIT, BUT BELIEF

ANTICIPATED

"The dairying industry has received I a sudden and severe blow, but I have 1 no doubt that it will recover in a very short time," remarked Mr. G. It. Moore, chairman of the Kin Ora Daily Company to-day, in the course of a discussion "on tho butter outlook. Mr. Moore referred to the sudden drop in butter prices, and the prospect of a further drop, as a result of the releasing upon the English market of old stocks ot last season's butler. Questioned by our representative, Mr. Moore declared himself in favor of the scheme for Government intervention, and the provision of a guarantee to the Imperial Government against loss in the old stocks, on current "prices. If the Ne.v Zealand Government would accent this course, and the British Government proved complaisant, it would mean the saving of hall a million of money to the Dominion, and would at tho same time provide for a steady income from the sales of this year's output. The principle of the Dominion scheme was that tho Government should offer the British authorities n guarantee against further loss, and in return takeover the surplus stock now held by the Imperial Government, and hold it in store until the present season's output of the Dominion was disposed of. He calculated that by the end of April, 1922, there would be an almost complete cessation of New Zealand output, and the surplus stocks could then be placed upon the market without endangering the returns to the Dominion's producers. On tho question of storage, Mr Moore informed the reporter that the withholding from consumption of the surplus stocks would not result in any deterioration past the point they must already have, reached. It would not hurt the butter further to keep it in store for a little while longer.

QUITTING OLD STOCKS

A WAIKATO OPINION

Discussing the dairying situation, the secretary of the! N.Z. Co-oj)crative Daily Company, Mr T. L. Hames, at Hamilton, stated that the serious position had arisen owing to tho desire of the Imperial Government to quit the whole of its stocks. If the remaining Government butter was forced on to the market at one time the immediate effect could not but be, disastrous. ' Mr Goodfellow had cabled that endeavors were being made by representatives of the New Zealand and Australian producers now in London to formulate a scheme to prevent any farther slum]). The matter, said Mr Hames, was also being dealt with at this end, while consideration was being given to it by the Australian and New Zealand Governments with a view to co-operat-ing with tho producers, so as to prevent the disposal of Imperial Government stocks in such a way as to completely break tho market. No doubt the New Zealand Government would give the most careful consideration to the matter, while Mr Goodfellow and others wore doing their utmost at tho other end. It was hoped that some satisfactory arrangement would be made in the near future, and in all probability a. conference of butter producers would bo held in the Dominion early_ in tho New Year. Mr Hames mentioned that the Imperial Government now held over 20,000 tons of butter, nearly half of which, lie understood, was New Zealand mado. Were this of good quality and fresh, it would not take the market long to absorb it at reasonable prices. Much of it, however, was stale, and it was even reported that some of it was unlit for consumption. Consequently tho old stocks had been moving very slowly since fresh butter began to he available. Tills had apparently led the Imperial Government to endeavor to quit the whole of its stocks on the market. If that menace could bo removed by the sale of a substantial quantity to tho Continent the butter outlook would be much improved immediately. In spite of bad trade conditions and the general depression in lamland new butter would no doubt retain fair prices, especially for best quality, such as New Zealand superfine, than which there was no finer entering the London market.

Discussing advance payments for December, Mr Hames said nothing definite could be said regarding these at the present time. The position was critical, and unless there was an improved tone in the market some temporary reduction in advances of butterfat might be necessary At tho same time his opinion was. tliat if the present difficulty could be overcome the butter market should be fairly satisfactory, with a return to normal conditions