FORCING DOWN PRICES

Stratford Evening Post, Volume II, Issue 226, 22 April 1933, Page 6

FORCING DOWN PRICES

i N.Z. Dairy Produce

FACTORY DIRECTOR'S ALLEGATIONS

Allegations that certain firms handling New Zealand dairy produce were offering large quantities on the London market at prices much below the present market prices and so forcing down prices wore made by Mr. S. Hawke, a director of the Patua Dairy Company, at a public meeting at Okato last night. Mr. Hawke quoted the quantities handled by one of these firms, which no 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. "f consider that the real trouble with the marketing of New Zealand dairy produce is caused by dairy company directors allowing firms whose financial position is not sound to handle their output There are at present and have been for some considerable time several such firms selling dairy produce on the London market at under its market value so as to enable them to unload quickly to get the cash to cover their obligations to the banks.

"These same firms have been known lo sell produce at times before it has reached the market, and I have heard of one occasion when a firm sold dairy produce before it had left New Zealand. To-day I was told that a certain wellknown firm was offering cheese on the London market for May delivery at 32s per cwt., at which price companies would net only about 10s per cwt., plus exchange. Tins firm is handling 7G35 tons of cheese and 6516 tons of butter, a total of 14,151 tons.

How Can It Be Stopped?

"Just how we can stop this sort of thing going on is hard to say because [ believe that both the Government and Ihc Control Board are conversant with the position and have not done anything to stop it." Mr. Hawke quoted a cable from the Importers' Association of Great Britain which he believed was sent to most dairy companies and to the Control Board. Apparently nothing had been done to rectify the position because these things v/ere still going or The cable stated: "Advisory committee :. : structions should be a,-.'■.; either direct from factories c ua' ■ board that con.. nts of butter and cheese shall nal sold until steamer has commence uharge and that no portion of con , .icnts be allocated by agents to a f .. d contract, consignees i; rurni:-h I: . with any information required to er.suae instructions carried R commendation is designed stop

~.acu'j<_ bailing consignments at under current price before - -r;-r ties up thus continually depressing market." "In my opinion," Mr. Ilcwke continued, "the firms handling New Zealand dairy produce should be licensed and only firms whose credentials are right should be permited to handle our produce. "Through these '" ins underselling the market at any time they are forcing down the p-ices of the produce of the whole world. It is these firms we need to get rid of. The Importers' Association i com/. nt with the position and knows vJhat ll .'. iuing in sending the cable it did. We are antagonising the British merchants by allowing such merchants to handle our produce. I think that is the real cause of the trouble." Mr. L. Hickford said the Control Board had power to stop this forward selling. '; <•'*' Mr. Hawke: The Control Board had this knowledge three months ago and they have taken no action. Mr. W. R. Wright said the Australian Control Board had stopped forward selling.

At the conclusion of the meeting a motion was carried that directors of dairy companies be furnished with the information that the Control Board had concerning the merchants who had been selling produce on forward delivery.