DAIRY PRODUCE

Southland Times, Issue 21998, 24 April 1933, Page 8

DAIRY PRODUCE

FORWARD SALES SERIOUS ALLEGATIONS MADE ‘UNDER CURRENT PRICES’ (Per United Press Association.) New Plymouth, April 23. Interest in dairy circles has been aroused by the allegation of Mr Hawke, a director of the Patua Dairy Company, at a public meeting, that certain firms handling New Zealand dairy produce were offering large quantities on the London market at prices much below present market prices, and so forcing down prices. Mr Hawke quoted quantities totalling over 14,000 tons handled by one of these firms, which, he said, should not be permitted to handle produce. He also stated that the Dairy Produce Board had been aware of the position for three months but had taken no action. He alleged that such firms’ object was to secure cash to meet their obligations to the banks. "These same firms have been known to sell produce at times before it had reached the market and I have heard of one occasion when a firm sold dairy produce before it had left New Zealand,” he said. “To-day I was told that a certain well-known firm was offering cheese on the London market, for May delivery at 38/- per hundredweight, at which price companies would net only about 10/1 per hundredweight, plus exchange.” Mr Hawke quoted the following cable received from the Importers’ Association of Britain, which, he said, had been received by the Dairy Board and the dairy companies’ advisory committee: “We recommend that instructions should be given to ail agents, either direct from the factories or through the board, that consignments of butter and cheese shall not be sold until the steamer has commenced discharge, and that no portion of the consignments be allocated by agents to a forward contract, consignees to furnish the board with any information required to ensure that the instructions are carried out. This recommendation is designed to stop the practice of selling consignments at under current prices before the steamr ties up, thus continually depressing the market.”