BUTTER MARKET SHOULD IMPROVE.

Star (Christchurch), Issue 19240, 29 November 1930, Page 9

BUTTER MARKET SHOULD IMPROVE.

NEW ZEALAND PRICES VERY LOW AT PRESENT. Per Press Association. WELLINGTON, November 29. The Dairy Produce Exporters’ Association has received the following cable from the Dairy Produce Importers’ Association, London: — “At the meeting of the association on Wednesday, at which were present by invitation representatives of the Amalgamated Dairies and Dairy Board, the following memorandums and resolutions were submitted and agreed to. A sub-committee of the association has met frequently to discuss and explore the position of the markets in New Zealand butter and cheese, and in their review are of opinion that the original cause of the present depression was the holding up of stocks last spring, and the consequent increase in the retail price curtailing consumption and making retailers unwilling to follow, except at a distance, the drop in importers’ prices. This continued throughout the summer, leading to an accumulation of stocks, which could not all be disposed of ere the new season’s supplies had arrived. The early production of New Zealand and the greatly increased production of Australia led to conditions necessitating a drastic fall in retail prices to bring the demand into line with the supply. “ This is gradually taking place, and, notwithstanding the large increase which we anticipate from New Zealand owing to a diversion of the butter formerly going to Canada and the enormously increased production of Australia, it looks at the present moment that the market will gradually get to a sound, healthy basis, regulated entirely by supply and demand. “ We must not overlook, however, the large proportion of unemployed and the world’s general economic position. Advertising Urged. The sub-committee recommended that an advertising campaign should be started to induce wholesalers and retailers to stock and push the sale of New Zealand butter at the present time. They also recommend that a petition should be prepared and presented to the Government pointing out the disastrous conditions prevailing among New Zealand farmers owing to low prices for dairy produce, and asking that a tax should be imposed on foreign food stuffs for the benefit of colonial producers. The subcommittee suggests an active Press campaign to teach housewives the. benefits of New Zealand butter, which can be bought at an exceptionally low level of price. The committee has also given consideration to the question of price fixing and pegging, or any artificial method of regulating the demand, and, in view of the disastrous experience of the Canadian Wheat Pool, of the Irish butter control and of the Scottish Milk Pool', are convinced that any artificial interference with the open market would accentuate rather than help the present position.” To carry out the resolutions a committee has been formed from the association, with the addition of Mr J. B. Wright, of the Amalgamated Dairies.