NEW ZEALAND CHEESE.

Taranaki Daily News, 1 December 1916, Page 2

NEW ZEALAND CHEESE.

SURPRISE TO THE TRADE. i MORE INFORMATION WANTED The information cabled that the Dominion output of cheese it, to be requisitioned by the War Department has come as a decided surprise to those interested in that industry. It was known, says the Auckland Star, of course, that the matter was under discussion in London between the Imperial Board of Trade and Mr. W. F. Massey and Sir Joseph Ward. Inquiry made in Auckland did not result in much light being- added to the position, as merchants seen said the whole of the information was too vague to permit of any opinion being given. "It has come as a shock," remarked one gentleman interested in the dairying industry, when asked what he thought about the ir.atter. "We in the trade at this end do not know where, we are just now, as this decision was quite unexpected. We can only think that the cheese will b< taken at somewhere near the figure which factories stated they were willing to accept. It will be remembered that last week there was a rumor the British Government proposed to commandeer the whole output of the cheese in the Dominion at the other end, and 100s per cwt. was the figure stated, but, of course, there was nothing definite in that. The point that occurs to me is that the latest quotations for cheese cabled from London were: New Zealand, 120s per cwt; Canadian, 122s to 1245. Now, from our point of view, if the output is taken on a basis of 100s per cwt. in London, that would be 2£d per lb under the latest cabled quotation from England. At the same time, 1003 per works out at about 10Jd per lb, but to thai has, of course, to be added cost of transit to London."

"The Government have done quite right in the action they have taken," remarked a merchant interested in the export of cheese, "but the trouble is that it was not done sooner. It is a serious thing for merchants who have already entered into contracts to find the wholt of the output of cheese commandeered, but we recognise that in t ; me of war these things have, to be faced. It means loss to the merchants, but the producers will come out all right because, whatever is the price fixed, it must be considerably above pre-war rates. As far as merchants are concerned, some have already purchased at BJd, and more recently as high as 10J per lb in New Zealand. Now the lucky men who were in early will have the mortification of finding the goods cannot be delivered by the producer. This means a complete cancellation of all contracts entered into in connection with the cheese industry for this season. Of I course, when the Government comman[deer, merchants cannot be held to contracts entered into. Really this means a merchant's loss, as they will be sidetracked altogether for the present season as far as cheese is concerned. Still it has to be admitted this is a good arrangement for the country as .-. whole, because the difficulty to be faced this season is the question of securing space for shipments. Now, once the British Government buy the output the vessels will be provided, and will be able to take away other goods not requiring space in cool chambers. That, of course, will all be required for butter, cheese and meat. It is a very big consideration for the farmer to be assured that the boat? will be provided to take the produce Home, because at the present time after the Athenic, the sailing date of another vessel from this end is at present unknown.'?