BUTTER PARLEY

Taranaki Daily News, 2 May 1933, Page 12

BUTTER PARLEY

THE VISIT TO AUSTRALIA REJECTION OF QUOTA PLAN DISCUSSION OF PROBLEMS REPORT TO DAIRY BOARD At the meeting of the Dairy Board on Friday the delegation which recently visited Australia presented a full report on . its discussions with the Australian Dairy Board. The delegation was headed by Mr. Dynes Fulton (acting-chair-man), Messrs. W. Grounds and T. C. Brash, secretary, and discussed a number of points of mutual interest. ’ In. connection with the proposals for restrictions the position, in conference, was first outlined by tire , chairman of the Australian Board, Mr. T. kett, M.Lf, who recounted the steps which fed been taken from the time the first cable relative to restrictions had been received. After Mr. Plunkett had spoken he asked the New Zealand representatives to state their position. This they did, putting forward clearly the attitude of the New Zealand Board and the reasons therefor. At the same time it was emphasised that the New Zealand representatives were anxious to consider the viewpoint of the Australian Board, and undertook to convey to their board any proposals put forward by the Australian Board. After an exhaustive discussion the chairman of the Australian Board indicated that his board would consider the position after the' New Zealand representatives had retired, and report the result later. The New Zealand representatives again met the chairman and several member? of the Australian Board on Thursday, when they were advised tha*t the Australian Board had decided to oppose the institution of restrictions. STATEMENT TO PRESS.

The New Zealand representatives conferred with the members of the Australian Board relative to a statement for the Press. This was agreed upon, but the Press itself varied the statement by adding a paragraph relating to a levy on production and a bonus on export, matters which were not mentioned whilst the New Zealand representatives were in conference with the Australian Board. The Press statement read as follows: “Butter export limitation opposed by board. The Australian Dairy Produce Export Board decided yesterday to oppose any limitation of Australia’s butter exports to the United Kingdom. This decision was reached after a conference extending for three days between the Australian Board and representatives of the New Zealand Dairy Produce Board. Yesterday afternoon the Australian Board met the Minister of Commerce (Mr. Stewart) and informed him of the conclusions arrived at. In view of the Federal Government’s determination to abide by the board’s finding, it is understood that the Federal Cabinet to-day will decide to allow the export of butter to Great Britain without restriction. In a statement issued subsequently it was pointed out that the principal matter under discussion at the conference was the suggested restriction on the export of butter to the United Kingdom. The New Zealand delegates submitted the decisions of their board, which was opposed to restrictions.

“The delegates explained at length the reasons for the attitude of the New Zealand Board, and an exhaustive discussion followed on every phase of the problem. After the New Zealand delegates had retired from the meeting the Australian Board further considered the matter, and finally decided against any restrictions, as it was considered that such would not be in the interests of Australian dairy farmers. Several suggestions were discussed with the view of affording relief to producers, and eventually it was decided that the quickest and most practical method would be a levy on production and a bounty on export. Accordingly a resolution ’was carried that the board should approach the Federal Government and ask it to provide immediately the necessary legislation to have this carried into effect.” Immediately the resolution of the Australian Board was known, a cable was sent by the New Zealand representatives to the office of the board in Wellington, with instructions to telegraph board members and cable Mr. loms. REGULATION OF SHIPMENT. Representations were made to the Australian Board that the New Zealand Board’s considered opinion \vas that the regulation •of shipment from New Zealand was undoubtedly having a steadying effect on the British market for New Zealand dairy produce, and at the same time provided for a continuity of supply, permitting the retailer to sell the New Zealand article all the year round. The following figures were submitted. relating to shipments of butter from New Zealand:—Perceptages of Percentages o f total shipments total exports ‘ which are grad- which are shiped each month, ped each month.

The Australian representatives submitted that the varying seasons of production throughout the different States not only made it difficult to undertake regulation of shipment, but actually gave a reasonable regulation of shipment, in proof of which they gave particulars of shipment as follows:— SEASON 1931-32. Shipments of Butter from the Commonwealth.

In the discussion it was shown that whereas Quensland’s heavy shipments were made late in the season, Victoria shipped early, having already practically ceased export for the present season, thus assisting in more regular shipment. The members of the Australian Dairy Board expressed keen interest in the method of financing delayed shipments,

r and in the New Zealand Board's shipping work. Nothing of the same nature was done in Australia. The Australian Board undertook .to • give careful consideration to regulation of shipment, but were not hopeful of it being undertaken. The magnitude of the local requirements and their complexities made such a move difficult. Selling consignments afloat was unknown to dairy companies, it was stated. The New Zealand representatives indicated that representations had been made by merchants in London that there was need to undertake preventative measures in this connection, and that the question was being investigated. The Australian Board had no power under the Act to make an audit, but the 1 chairman indicated that should - this be found necessary he felt certain the power could be obtained. F. 0.8. AND C.I.F. SALES. : The discussion on this point brought out the fact that this class of business was fairly popular in Australia and that it was unlikely that it would be eliminated. The restrictions applied to this class of business by the Australian Board are that no butter could be sold before it was graded. In other words, selling for the season, or even portion of the season, is prohibited, and further, no stidh’ .sales can be made at a price lower than the price fixed by the Dairy Board. The price is fixed 1 Friday. The regulation governing that the price fixed by the board shall be on the basis of the London market rate for consignments ruling at the time, less the usual charges. It was admitted, however, that other circumstances were taken into consideration when fixing this price. ADVERTISING. Considerable discussion took place on the question of advertising and members of the Australian Board were unanimously'of "the opinion that more advertising was necessary, especially featuring the value of butter as a food and the' greater vitamin content of butter from the Commonwealth and the Dominion. It was their opinion that at least £25,000 per annum should be spent by each board in this direction in addition to the present allocation. The following resolution was passed: “That with the view of increasing the consumption of butter in Great Britain and thus endeavouring to bring about an improvement in prices on the world's markets, this conference recommends that an extensive propaganda and advertising campaign be started in the United Kingdom, pointing out the high value as a health food of butter compared with all other edible fats.” I . MARGARINE. The Australian Board is concerned regarding the increased use of margarine in the. Commonwealth, and considered some, restriction should be placed by Great Britain .on the importations of whale oil, which is now largely used for the manufacture of margarine. It was estimated that Britain imported 250,000 tons per annum. Some members who had investigated • the cold storage problem in Britain were personally in favour of the New Zealand Board’s cold storage and handling policy. However, they ascertained that ' the merchants handling Australian but- ] ter did not consider it necessary. In their investigations they were advised 1 by Hay’s Wharf Authority that if Australia would come into the cold storage ' contract it would mean a reduction on 1 the present contract rate, the reduction ' to apply to both New Zealand and Aus- 1 tralia. It was felt that the two boards < shquld combine in an effort to get a i reduction in cold:storage charges ( The Australian Board asked for par- • .ticulars of the contracts held, by the < New Zealand Board, which were freely < given. A suggestion was made that the ‘ two boards should combine in making a 1 freight contract,' but the New Zealand I representatives questioned the practic- < ability of this proposal. 1 There was a distinct'feeling that an < effort should be made to sell Australian i butter in Great Britain in pats. <

OTHER MEETINGS. The New Zealand representatives were invited to attend a meeting of the Australian Dairy Council on April 21. This is really a large committee made up of representatives from all the States for the purpose of handling matters which do not come under the jurisdiction of the Export Board. It is financed by a levy of Is 8d a ton on all butter exported. The agenda included such matters as pasture improvement, research into diseases of dairy cattle, wood, taint, butter substitutes, national brand, etc. It was evident that a really valuable work was being done in connection with the first two items on the agenda. The difference in the work necessary in the various States for pasture improvement provided an exceedingly interesting discussion.

An opportunity was also given to the New Zealand representatives to attend on April 25 a conference which had. been called of representatives of all States to consider the problems of the local market. Difficulties appear to be arising in connection with the Paterson Plan, due to the keenness of dairy companies to secure ,a greater share of local sales, thus making for lower prices. Further, the ever-increasing export makes the question of equalisation of prices more difficult.

The Paterson Plan is not backed by any legislative authority, and there appears to be a distinct desire that this should be secured. The following resolutions were carried:— 1. That this conference is of opinion that the price of butter consumed within the Commonwealth should be determined on the basis of Australian economic conditions —in other words, that an Austra-

lian price should obtain regardless of variations due to economic or other causes in Britain or elsewhere. 2. That the conference recognises such an objective cannot be achieved under present conditions which because of surplus production of necessity encourages the exploitation of the local market to a point which reduces the local market price to world's the conference therefore is of opinion that to permit of the achievement of its objective the incentive to exploit the local market must be removed and that this is possible only by ensuring that sales of butter whether effected locally or overseas will secure the same return to factories. 3. That the conference is convinced that its objective can be secured only by legislative means, and to that end a sub-committee be appointed and empowered to draw up proposals for submission to the Commonwealth and State Governments, in doing so the "committee to have regard to the dried fruit or any other legislation on the Statute Books of the Commonwealth or States having a bearing on the matter. The committee mentioned in No. 3 was duly set up. Its main objective is to secure legislative authority for some proposal whereby prices of butter on the local market should be raised to a higher level, which may include the legalisation of the Paterson Plan. It is understood that legislative authority for the Paterson Plan may be difficult to secure, but it is hoped that some arrangement may be made to provide for a price in keeping with Australian economic conditions. VALUE OF THE VISIT. Summarising the results of the conference with the Australian representatives it can be safely stated that the visit was deeply appreciated. As a re-

suit the difficulties on both sides are more fully appreciated and at the same tffjhe a clearer understanding has been secured of the need of greater co-or-dinatioh between the two countries to provide 'for their ever-increasing quantities of dairy produce being marketed in Great • Britain. . A cordial invitation was given to the Australian Board to send’representatives to New Zealand,' and the hope was expressed that such an exchange of visits might take place at least every twelve months. . The greatest hospitality was shown to the New Zealand representatives. The report was received by the board and congratulations extended to the delegation upon the results secured.-

1932-33 Season. z p.c. p.c. August .. 3.4 6.5 September 7.0 4.2 October 12.0 9.7 November ..... 15.0 12.4 December 15.0 8.6 January 12.3 1 9.8 February 10.4 9.2 March 10.4 10.0 April 6.8 est. 10.0 May 4.6 est. 7.2 June 1.8 est. 6.4 July 1.3 est. 6.0 — 100. 100. — —

Tons. Percentage. July ... 3,083 3.4 August . ... 4,538 5,0 September .. ... 5,486 6.1 October ... 10,111 11.1 November ... ... 9,778 10.8 December ... ... 11,330 12.6 January ... 15,022 16.6 February .... ...• 6,918 7.6 March ... 5,785 6.4 April ... 6,539 7.2 May ......... ... 6,344 7.0 June .. 5,569 6.2 Totals ...... .. 90,503 100.