REGULATION OF MARKET

Taranaki Daily News, 4 September 1935, Page 7

REGULATION OF MARKET

DANISH BUTTER PROPOSAL VARYING OPINIONS IN TARANAKI. MR. BLYDE AGAINST RESTRICTION. RESULT AWAITED WITH INTEREST. Developments of the recently reported desire of the Danish Government to cooperate with Australia and New Zealand regulating the international butter market are awaited with keen interest by those Connected with the industry in Taranaki. Although the opinion is held that the idea is not sufficiently advanced to permit either definite approval or disapproval, most, seem of the opinion that a co-ordinated marketing scheme, not necessarily involving drastic restriction of production or quotas in the ordinary sense of the word, would be distinctly advantageous to the New Zealand producer. “I cannot see that an agreement between New Zealand and Denmark to regulate the markets can do other than confer benefits on the producer,” said Mr. C. H. Sorenson, chairman of directors of the Mangorei Dairy Company, last night. “From the accounts published I take it that Denmark has merely expressed a desire to get in touch with Australia and New Zealand, exchange views and arrive at some conclusion for mutual benefit One commonly hears farmers say that they are tired of regulation, but the fact remains that there must be more order in the marketing of our produce. In recent years our ability to produce has increased out of bounds. The present problem is for us to dispose of our produce at a price that pays us to produce it. A little more understanding between New Zealand and Denmark will do the world of good and help us avoid trouble in the future.” > "WITHOUT RESTRICTION.” Mr. H. E, Blyde, president of the North Taranaki. executive of the Farmers’ Union, agreed that if the proposal meant regulation without restriction, he was entirely in favour of the idea. However, before sponsoring a scheme one must have full particulars of what it proposed to effect. With the market in its present state, regulation might.(Well help in raising the price level- However, if that regulation meant drastic restriction on production it was an entirely different thing. Quotas on meat and quotas on dairy produce were entirely different things. The present meat quotas operative constituted merely a system of organised marketing that did not really limit production at all, One large dairy produce agent approached viewed the question from an entirely new angle. The present trend of the markets, he said, might well mean that restriction would be. completely unnecessary for either New. Zealand or Denmark in any case. Tariffs and the whole trend of the productive system was making it an uneconomic proposition for certain small countries to produce for export at all. The position might thus expect to be considerably relieved within a comparatively short time. Most of the men connected with the butter production business in Central Taranaki were diffident about making comment on the message when approached. The general opinion seemed to be that the suggestion was too vague as yet to base either hopes or criticism on it. Opinions were divided on the advisability of following the suggestion. INCREASED CONSUMPTION. He had little faith in attempts to regulate the butter market for the purpose of increasing prices, said Mr. L. E. Hann, chairman of directors of the Stratford Dairy Company. Increased consumption was the thing to be at first, he said. That was a bigger factor than anything else. All such combines and cooperative agreement had only one ending; every time it was the man at the other end, the consumer, who had the biggest- say. If, for instance, an increase in price was agreed on by the butter supplying countries, the probable effect would be a decrease in consumption. There would be fewer people able to afford butter. What advantage was there? He did favour regulation, said Mr. T. T. Murray, Toko, president of the Stratford sub-provincial executive of the Farmers’ Union, but he felt ; that the message was too vague to be' commented on. He was far from satisfied with the present system of marketing New Zealand’s produce; there were "too many bosses." Mr. Murray pointed out that, while Denmark actually received a higher price for its butter than did New Zealand, the country had to pay heavy import duties on it, and in addition the cost of production would almost certainly be higher than it was in New' Zealand, so that Danish fanners were- at present receiving returns probably smaller, and certainly no larger than the New Zealand producers. ....... . The cabled message appearing in the Press was the first a id only intimation received by the Dary Board, said Mr. C. A. Marchant, Cardiff; in a telephone conversation from Wellington with the News last night. Mi’. Marchant, is one of the Government nominees on the board. In the absence of any official communication from Denmark he could not make any statement at all, said Mr. Marchant. He. knew nothing at all about it except the brief cabled message, though he was naturally interested in the suggestion. It would be very interesting to know what was behind the message, suggested Mr. H. C. Taylor, chairman of directors of the Ngaere Dairy Company. It was possible that Denmark realised that some action favouring the Dominions might be forthcoming, and was anxious to place herself on a sound footing with the other butter supplying countries.