THE BUTTER MARKET

Taranaki Daily News, 2 November 1926, Page 9

THE BUTTER MARKET

MR. MacEWAN’S COMMENTS POSITION CONSIDERED GRAVE. PRESENT METHODS CRITICISED. Wellington, Oct. 30. Interviewed on his return from a run through the Taranaki, Auckland and Waikato dairying districts, Mr. J. B. Mae Ewan, the head of the Wellington firm bearing his name, said he had been much impressed almost everywhere by the growth of pastures and supplementary crops. In this respect the countryside presented a much more cheering aspect than it had done 12 months previously, when a dry autumn and a backward spring had left many of the farmers short of feed and with a rather gloomy prospect before them The change, naturally, was reflected in the factory returns. Throughout the dairying districts, almost without exception, the butter-fat production had been substantially increased. Herd-test-ing had contributed largely in some instances to this gratifying result, and should be encouraged in every way possible, but the chief factor in the improvement was the abundance of seasonable feed. The result, Mr. Mae Ewan had no doubt, would be a large increase in the output of dairy produce, perhaps as much as 10 or 15 per cent, in advance of that of last year, but, of course, much would depend upon the conditions prevailing for the remainder of the season. PRODUCERS ALARMED. Mr. Mae Ewan, optimist though he is, was not disposed to predict that the increase in the volume of produce would cover the decline in price. The market for the time being, he pointed out, was against the producer, and at the moment he saw no prospect of a material improvement. During his recent trip he had chatted with many factory directors, as well as with other business men closely associated with dairying, and he had found them all gravely concerned by the position of the industry, and the prospects ahead. The farmers felt they had reason to share the anxiety of the business men. It would not be too much to say that many of them were viewing the position with positive alarm. They were receiving pay-outs which were insufficient to meet their immediate needs, and they could expect no relief in the near future. No doubt, Mr. Mae Ewan continued, the economic conditions at Home created by the coal strike and the general disturbance of trade were largely responsible for the producers’ troubles here, but there obviously were other adverse influences bearing on the situation. These had to be faced frankly, without any carping criticism of blunders that could not be repaired in a day or two. NEW ZEALAND CHIEF SUFFERER. It would be instructive, or at any rate suggestive, said Mr. Mae Ewan, to examine for a moment the relative positions of butter prices in London during the first week of October, 1925, and the first week of October, 1926. This, he thought, would show that New Zealand butter was suffering some disadvantages, apart from the unfortunate economic conditions, which had not impaired the prices of other butters. “In 1925,” Mr. Mae Ewan quoted, “New Zealand butter was 4s 6d per cwt. above Danish butter, and is now 28s per cwt. below; Australian was 12s below New Zealand and is now only 2s below; Argentine was 42s below New Zealand and is now only 5s below; Irish was-2Qa.. below New Zealand and is now only 4s below; Esthonian was 9s below New Zealand and is now on a level; Siberian was 45s below New Zealand and is now only 28s 6d.” THE ONLY EXPLANATION. There could be only one explanation of the loss of prestige by New Zealand butter on the London market, Mr. MacEwan insisted. Transport on the whole had been better arranged, the Dairy Board had had abundance of money at its disposal for advertising purposes, and there had been heads enough in London to provide the best possible service. Yet New Zealand butter had suffered more from the slump than had the butter of any of the other competing countries. It was significant, Mr. Mae Ewan suggested, that New Zealand was the only one of the competing countries that had jettisoned the tried and proved systems of the past and embarked upon the perilous experiment of absolute control, and now in the time of stress was the one that had lost most ground on the market. Could there be, he asked, any other explanation than the obvious one of this result? The merchants and distributors, who had been in the business for years, were told in so many words that while their services would be required, it would be on the Dairy Board’s own terms. That meant in a great measure a lessening of the trade’s interest in New Zealand produce, and its increased attention to other sources of supply. Even more significant was the change in the attitude of the Prime Minister toward price-fixing and absolute control since his arrival in England. He had seen and he had understood. LOSS OF GOODWILL.

Summing up the position, Mr. MacEwan said he could not escape the conclusion that the development of absolute control, and particularly the issue of most unhappy directions and even commands from the Dairy Board’s London office, had produced a feeling of strong resentment among the distributors at Home. There was no need to cast any reflections upon the board’s integrity or upon its good intentions, but it was quite plain from the cable messages published by the newspapers during the last week or two that Mr. Grounds and bis colleagues had failed to grasp the delicacy of their mission and had not made allowance for the age-old traditions and observations of the Home markets.

It appeared to be undisputed that the London distributors were looking with strong disfavour upon New Zealand dairy produce and giving preference to produce from other countries. If this attitude were maintained for any length of time it would mean not only an immediate heavy loss to the producers of the Dominion, but also a very grave menace to their footing in the London market. The matter was of such grave public concern that some one in authority ought to be taking action without a moment’s avoidable delay.