PRICE OF BUTTER.

Wanganui Chronicle, Volume LXVI, Issue 7562, 5 May 1919, Page 5

PRICE OF BUTTER.

STATE RESTRICTIONS ON SAME

DAIRY COMPANIES MEET IN

PROTEST

Representatives of the dairy companies in the Manawatu and Wairarapa districts met in conference at Palmerston North on Thursday last to consider what steps .should be taken to prevail upon the Government to remove the existing restrictions under which the factories are compelled to sell their butter locally at 1/5 per lb. bulk, while by exportr ing it they can obtain nearly 1/7^ on the Home markets. The meeting which was convened by the Awahun and Rongotea factories, was attended by the following:—Messrs P. iiansen and N. Campbell (Awahuri). Barragh and Will (Rongotea), B. Law (Shannon), Osborne (Apiti), Limberg (Mauriceville), J. C. Ewington (Masterton), Broadbelt (Levin), Michle (Cheltenham), C. R. Beattis (Hawke's Bay), W. Bendall, T. Parsons and C. Voss (Dairy TJnion).

At the wish of the meeting Mr. Hansen took the chair, and proceeded to outline the position. He pointed out that butter was the only food product on which the Government had fixed a price for local consumption and the butter factories were thus unfairly discriminated against. It was for the meeting to take deflnr ite steps to approach the Government in the matter.

According to Mr. Ewington, the meeting did not have the necessary weight behind it to influence the Minister in the matter. In his opinion the Government should be ,urged to pay out the difference between the prices for exported and local sales for the periods 1918-19 and 1919-20 out of the Consolidated revenue. To this end he moved that all butter companies in the Dominion should be circularised, asking them to, appoint delegates and wait on the Dominion Butter Committee and the Minister. i

The motion was seconded by Mr. Michie, who suggested that those present should enlist the active support of members for Parliament of the various districts. He also urged that a definite understanding should be arrived at with the National Dairy Association in the matter, which body should be trying to help the, companies along. He failed to see why other dairying centres in New Zealand had not bestirred themselves over the question the same as in this district.

It was pointed out by the chairman that to approach the National Dairy Association for assistance would be of no avail. H« had letters from various places in support of the movement. In emphasising that it was necessary to get into touch with all the butter factories in the Dominion, Mr. Hansen, stated that ten or twelve factories «ould carry no weight with the Miqister.

While he supported the motion Mr. Beattie considered that they had not much chance of realising their hopes, particularly in view of opposition in the Dast. With the advent of the elections, however, the Gov* eminent might be prevailed on to tadce the matter up.

Mention was made by Mr. Darrago of the last conference that had been held with the Butter Conference in Wellington. The committee were, he stated, prepared to help the butter factories in every way! In pointing out that the butter companies were not properly organised, he stated that in Canada the dairymen had been successful in securing one offer for both butter and cheese. In Canada they had acted »n business prin-% ciples, and the dairy companies in New Zealand should do the same. They ought to be able to draw up a business-like statement for presentation to the Minister.

In the opinion of Mr. Campbell the motion did not go far enough. He accordingly moved the following amendment:—"That a circular be sent to the butter, factories of all districts in the Dominion asking them to call meetings of those interested, advising them of the resolutions arrived at, and.asking them to cooperate by appointing delegates to meet the Dominion Butter Committee in Wellington on the 21st inst., and the Minister if it could be arranged, with a view to getting the difference in price between the export and local prices since the Government took up the purchase of the butter, paid out of the Consolidated revenue, and also to ask the National Dairy Association to co-operate.

Speaking to his amendment, Mr. Campbell touched on the hardship the Government's action imposed on returned soldiers who were taking up land for dairying purposes. •

In the course of a general discussion it wan pointed out that in round figures one-third of the butter produced was sold locally, involving a loss on the part of the vendors of 2%d per pound oh 33 1-3 per cent, of their output. The cheese vendors, on the other hand, sold their produce to the Imperial authorities at 10 %d per pound, while 1/3 was the retail price charged on tLa local markets. Under the Government's equalisation scheme those vendors who sold thcwholo of their output locally would probably receive 1% d. per pound compensation, the Government making up the extra price out of the export purchase price of 181s. per cwt. This was not sufficient, as the loss pf 2%d. incurred through selling locally should come out of the Consolidated revenue.

Mr. Ewington with Irew his motion and the amendment, which was seconded by Mr. JDarragh, was adopted by the meeting:

The Minister, it was decided, is to be written to, asking him to meef the delegates in Wellington on the 22nd inst.