The Daily News. SATURDAY, JANUARY 10, 1920. FREE MARKET FOR DAIRY PRODUCE.

Taranaki Daily News, 10 January 1920, Page 4

The Daily News. SATURDAY, JANUARY 10, 1920. FREE MARKET FOR DAIRY PRODUCE.

Owing to the existing contract With the Imperial Government relative to the purchase of the Dominion's output of butter and cheese expiring in July next, meetings are being held by representatives of North Island dairy factories to consider the question of marketing their produce. At the meeting held at Hawera on Thursday the matter was very fully discussed, and the conclusions arrived at may be taken to represent the views of the general body of producers in the Dominion. Those present were under the disadvantage of having no definite information regarding the attitude of the Imperial Government concerning the control of butter and cheese 'after the expiry of the existing agreement, and all they had to go upon was a cable from the London representative of the National Dairy Association to the effect that it was likely the butter control would be continued for twot, ,or possibly three, years, but that cheese would be released from control, and this view seems to be confirmed by a cable from Melbourne. Naturally the chief factor in the whole matter is the price which the producers are to receive, and, connected therewith, is the question of reverting to a free market where dairymen can.obtain the full market value of their goods. It can readily be understood that, under existing conditions, whereby the Dominion producers are paid by the Imperial Government IOJd for cheese, and 18 l-5d for butter, ' there is a great disparity between these prices and those paid by the consumers in Britain, and now that the war is over the producers feel they should receive the handsome profit the British Government is making over the deal. The contention is reasonable and incontrovertible, and it might even he extended to claiming that the dairymen should be treated on the same basis as the wool-grow-ers and receive fifty per cent, of the profit made by the Government. Certainly the New Zealand producers have the right to be treated as favorably as the Canadian, and other British Do- ! minions,, after allowing for the difference in freight charges. Mr. Murdoch, who has just returned from Britain, stated that New Zealand cheese arrived Home is as good condition as the Canadian article, and it should, therefore, be on an equality in price. From an Imperial point of view it may be good business to pool all the dairy produce bought at different prices, but the effect of that action was to inflict an injustice on New Zealand producers (who receive the lowest price) in order to .make up the loss on the higher priced goods obtained elsewhere. It was pointed out that the English farmer received 2s Id for cheese which was sold at Is 6d, the loss being made up at the expense of New Zealand' dairymen. Manifestly this is and lends force to the claim of the Dominion producers for an "open market. With a view to rectifying the existing unfavorable conditions it was suggested the representative of the National Dairy Association, representing the producers, should deal directly with the Imperial Government in the matter of prices, and the proposal appears to be on the right lines. The real remedy, however, appears to be that of reverting to sale on the open market, but, if it is considered necessary to continue the control of butter distribution in order to prevent prices soaring too high, then it is only fair that the Dominion producers should reap whatever,, profit there is. instead of that profit being garnered by others. The present method is entirely indefensible, and should no longer be tolerated. The' chairman (Mr. Arthur Morton) considers the Dominion producers should receive thirteen pence a pound for cheese, and twenty-two to twenty-three pence for butter, and, in view of the present prices paid by the British consumers, his estimate appears to be conservative. The true'test is an open market. The question of bringing Australia into line as to the price of butter was also ventilated at the meeting, and in this connection it. is i worthy of note that a cable message from Melbourne, received on Thursday night, notified that a conference of inter-State producers was considering the establishment of a wholesale co-opera live, federation to act on behalf of affiliated societies in the wholesale distribution of Australian produets in foreign markets. The materialising of such a scheme 'should bring the Australian pro-.

cheers into line with those of the Dominion in the manner advocated by Mir. Morton. The beneficial marketing of the Dominion's dairy produce is of immense importance to those engaged in,the industry and to the welfare of the country. The delegates appointed to the Wellington meeting have full power to act as they deem best for the future of the industry, and they may be trusted either to secure an open market or such terms as will give the producers their just share of the prices paid by British consumers.