DAIRY PRODUCE.

Taranaki Daily News, 25 August 1921, Page 6

DAIRY PRODUCE.

REVIEW OF PAST SEASON. PROSPECTS FOR THIS YEAR. AN INTERESTING ADDRESS. Mr. J. B. Murdoch, a prominent dairy authority, and chairman of the T. L. Joll Dairy Company—whose output last year, on a very conservative basis, amounted to £281,000, and which will probably amount to over £300,000 before the final returns are received—gave a very interesting address to suppliers at the annual meeting of the company at Kapuni yesterday. The past season, he said, had been the most successful in the history of the company. At. the beginning of the season the prospects for cheese looked very bright indeed. It was considered that throughout Britain and the Continent generally there was going to be a scarcity of food, especially of dairy products, and consequently, although there was a great, stock of Imperial cheese at the time, prospects looked bright. During the season, however, prospects changed, so much so that about the middle of the season, towards the end of November or the beginning of December, the company thought fit to change as far as possible to the manufacture of butter, which had been commandeered by the Imperial Government at 2s 6d per pound, and which, it was considered, would pay a better price than cheese. Eventually about half the supply had changed to butter, and though this necessitated largeexpenditure in bringing the plant to a condition suitable for butter production, practically all of which expenditure had been charged to repairs and renewals, making the season bear the burden of the change, it had proved a profitable change for suppliers.

FLUCTUATION OF PRICES. Mr. Murdoch touched on the causes of the great fluctuation in price, remarking that there must be a greater factor than the purchasing power of the people, which was affected by the strikes and the unemployment. He, however, did not think this was responsible for the whole fluctuation. A great many of the merchants could affect the situation by putting large quantities of their produce on the market at a time, and so bring down the price, or they could play with it by other methods. Until the producers had more control of the marketing of their produce, say by putting it in rhe hands of some control board to handle it. they were in the hands x>f these people. 'He did not believe it was altogether due to the weak holders, though he knew these often had io go to the market in order to meet their obligations, but some of the big holders placed their produce on the market with the idea of pulling or bringing down the market, so as to buy at a low price and sell again, thus malting a profit, rather (han work through the ordinary trade channel. That, however, was

a matter for the companies to consider, and personally lie did not think the time was far distant when there would be a federation of companies throughout New Zealand to deal with the .-matter.

J'torn the fact that the price of cheese had varied during the season from as high as 164 s to as low as 98s, they could see how there could be a difference in the

pay-out of various companies, according as they met the high or low markets. At the commencement of last season some of the smaller companies had received offers for their outputs, and a few companies had sold in the North Island at as high, as Is 2 9/lfid per pound. In the South Island, where the policy generally was to sell, they had received from IHd to Is 2d. These offers only made to companies with small outputs, say up to 300 tons, and as far their company was concerned no oiler was received.. There was no need to think that by selling they could beat the man at the other end, because he was there to make money. This year, he said, offers had been niade to small companies, but these prices had now been withdrawn. THE OUTLOOK. Regarding the prospects or the coming season, Mr. Murdoch considered these were belter than at the beginning of last season. The stocks of daily produce at pre sent were small. In New Zealand all the stores were clear of dairy produce, whilst: in the Old Country, according io latest reports, there were only small stocks. The prices quoted at present were: Butter 2535, and cheese 1365. During the past season, Britain had passed through times of stress, but this was decreasing week by week, until now there ivas not much unemployment and it looked as if prices would he very good during the coming season. Some people were optimistic enough to look for cheese reaching 160 s or 170 s, but he thought if they got 140 s to 150 s regularly they would do very well; 131 s was equivalent to Is f.0.b., New Zealand. Mr. Murdoch briefly touched on the new taxation proposals, pointing out that the Government now taxed all sums placed io reserves, all dividends paid by dairy companies, and all amounts carried forward. They had been told in the past that they should set aside sums so as to place companies in a sound position, and not lean on others, but if they were to be taxed they would have to write off only what was allowed by law, and do the best they could in other ways. He recognised taxation was required, but the Governmeiff should get it in some other way, and ndt by taxing dairy companies, which were not out for the purposes of profit, but were out for the benefit of the supplier, who got all there was in them. He did not think it was right to tax the supplied individually and also through his company. Mr. Murdoch said he understood that the Government intended to tax companies who put their marine insurance through foreign companies, that is, companies having their offices in London, and nor. locallj r . The Government considered that dairy companies were doing business with these offices because of the saving effected, and they estimated this at 10 per cent. The Joll Company’s insurance last year amounted to £2500, so they would probably be taxed on that amount at not less than Is 3d in the £l. Dairy companies, he said, did their business with companies that had London offices, as these had a better chance of. looking after the produce when it reached Home. .