MARKETING REPORT.

Taranaki Daily News, 20 November 1937, Page 6

MARKETING REPORT.

Previous statements and forecasts by the Minister of Marketing had left few surprises possible in the annual report of the Primary Products Marketing Department submitted to Parliament on Thursday. The estimated deficit in the dairy industry aceount' is slightly over half a million pounds, and the figure quoted in the report is unlikely to be far from correct when the final figures are available. The deficit arose, as Mr. Nash stated at Stratford sorae weeks ago, through a miscalculation regarding the costs of manufacturing butter. In itself the deficit is not one that need cause any anxiety provided prices for dairy produce during the current season remain at a reasonably high standard. Upon that point no one can speak with authority, for the high prices obtainable during the past few weeks affected but a handful of the season's output. The fact that so grave a miscalculation was made in regard to butter will inevitably raise doubts regarding official calculations of farmers' costs of production which are the factors considered when the guaranteed price is fixed, and from which the farmer has no appeaL It will raise suspicion also of the accuracy of other official calculations and impressions, including those concerning the reactions of London merchants to the marketing system inaugurated by the State. Mr. Nash had the good fortune to take up the new portfolio after the Dairy Board had done much to prepare the way for an alteration in the marketing system. Those alterations were more easy to attain by a Government than by a board, and if they prove a permanent improvement on the free marketing system, then the Dairy Board is entitled to much of the credit for the new system. Opinions in London and in New Zealand are by no means unanimous that the Government's system will work well should prices fall as drastically as they did during the depression, and its critics contend that its operation during a period of buoyant prices. only is insufficient evidence of the success or otherwise of the State or any other marketing system. One of the most interesting features in the report is the statistical evidence it contains regarding improvement in the quality of butter and cheese. In 36 per cent. of the total exports of butter the grading points qualified for the premium offered for highest quality, 44£ earned the basic guaranteed price, and 19£ were too low in quality to obtain the basic prices. In cheese exports 20£ per cent. earned the premium, 55h obtained the basic price, and 24 per cent. failed to qualify for that price. There is room for much improvement when over a fifth of a season's output of butter and cheese cannot qualify for the basic price, and it will be instructive to note what the current season will show in this direction. Whatever may be the local outcome of State control of the dairy industry it is certain that upon good quality will depend the retention or loss of its present hold upon the markets of Great* Britain.