BUTTER EXPORT BOUNTY

Poverty Bay Herald, Volume LIX, Issue 17953, 3 December 1932, Page 6

BUTTER EXPORT BOUNTY

THE PATERSON PLAN VIEW OF FARMERS’ UNION A letter upon the Paterson plan to encourage the export of butter as in operation in Australia lias been sent to members of the New Zealand Farmers’ Union from the head office in Wellington. It, comments upon the application of the plan to the marketing of New Zealand butter, and tlie opinion is expressed that it would not be practicable. The letter says that about, 80 per cent, of the butter manufactured in New Zealand is exported and 20 per cent, consumed locally. For the year which ended on July 31 last 97.OCX] toils were exported. A bonus of 3d per lb on this amount would total £2,716.C00. In order to provide a pool big enough to pay this bounty, a levy of almost 2i,d per lb would have to be levied on the 123.C09 tons manufactured so that the “game would not be worth the candle ” The position regarding) cheese would be worse, as 85,000 tons were exported during the same year and only 4COO tons consumed locally. The deduction made from the facts is that the scheme would fail regarding any commodity with a much higher export. than local trade, continues the letter. Owing to the very high proportion of New Zealand butter and cheese exported, it is not considered that the Paterson plan could be operated successfully in New Zealand.