BUTTER EXPORTS

Stratford Evening Post, Volume II, Issue 221, 15 April 1933, Page 6

BUTTER EXPORTS

Proposed Restrictions FARMERS' UNION VIEW

The opinion that before New Zealand should agree to any restriction of its exports into Britain it should be assured that foreign exporting countries should be subjected to at least a three to one restriction at the same time was expressed by Mr. H. E. Blyde, North Taranaki provincial president, at the annual meeting of the Cardiff l\._.ners' Union branch.

The quota restriction suggestion had created a very grave position indeed, said Mr. Blyde. New Zealand was already consuming more butter per head of population than any other country in the world and obviously could not absorb the whole of the 6 per cent, proposed to be kept off the British market next season. Australia, on the other hand, should be able to stimulate its home consumption to a considerable extent. Thus the question of restricting exports presented more difficulties to New Zealand than to the Commonwealth. Even if, because of a restricted quantity of exports, the price of New Zealand dairy produce rose on the London market, Mr. Blyde pointed out, there was no guarantee that higher prices could be maintained in the face of the natural law of supply and demand.

I The welfare of New Zealand as an exporting country was so bound up in the ability of Great Britain to purchase its primary products that Mr. Blyde was of the opinion that strenuous endeavours should be made to prevail upon the Government to effect an immediate lowj ering of tariff barriers against British goods with a view to assisting that country's manufacturers, creating work for its people, and, incidentally, providing a means whereby it would be enabled to buy more New Zealand produce. What of 6 Per Cent.? Mr. C. A. Marchant agreed that any imposition of restrictions upon the New Zealand exporter should be accompanied by greater restrictions upon the foreign exporter. "How," he asked, "is New Zealand to dispose of 6 per cent, of its exportable dairy produce if Great Britain will not take it?" Some suggested die incorporation of less moisture, but | this might become a very dangerous practice if it once was recognised as an established custom. Others advocated the prevention of the manufacture of whey butter. Still others thought ' the prohibition of the manufacture of margarine and coco butter might help to solve the difficulty. Frankly he could see no solution at present, said Mr. Marchant. The fact that it cost between 20s and 22s to manufacture and market one cwt. of produce showed how serious was the whole position. Indeed, if the price of dairy produce was to fall another 30s per cwt. it would not pay to bring milk to the factories at all. He would not agree to any permanent restriction of exports, because that would mean the abandonment of all land settlement for many years and would tend to hinder the development of all production. Mr. Marchant felt that something might be done in the direction of reducing costs, but when he approached this matter he could not help thinking that unemployment would increase and, with shrinking incomes, the revenue of the Unemployment Board would grow less and less. Unless a wonderful change came over the markets he was inclined to the belief that New Zealand would feel the depression more acutely during the coming winter than before.

Mr. H. J. Marchant, chairman of the meeting, said he thought the position was already out of control. Prices to-day were so low that farmers might well consider feeding their whole milk to their pigs rather than convert it into butter and cheese. The Government might be wise to accept the proposed restriction, but at the same time he believed it would become necessary to announce default in oversea payments.

No action was taken by the meeting.