EXCHANGE INFLATION

Wanganui Chronicle, Volume 79, Issue 196, 22 August 1935, Page 7

EXCHANGE INFLATION

Only Temporary Benefit MR. GOODFELLOW’S WARNING NEW ZEALAND’S DAIRY PRODUCE WRONG MARKETING METHODS [ Ter Press Association. 1 HAMILTON, Aug. 21. “Once again I must draw attention to the outstanding importance of the United Kingdom as our only worthwhile market, and to the very unsatisfactory manner in which New Zealand dairy produce in general is marketed* in that country,” declared Mr. William Goodfellow, managing-director of Amalgamated Dairies, Limited, addressing suppliers of tho New Zealand Coop. Dairy Coy at the annual meeting to day. Mr. Goodfellow said that apart from the efforts of the company and its subsidiaries, no other Empire producer organisation was making any serious effort in the United Kingdom to secure marketing efficiency. It was to be hoped that the new Dairy Board and Agricultural Commission would tackle this problem with determination and vigour. If the system of marketing which the company had had in operation since 1922 were applied to all New Zealand butter and cheese, the net gain to the producers would bo a huge sum. annually. In view of the pioneering work already done by Amalgamated Dairies, Limited, and Empire Dairies, there was now really no excuse for further delay. The present methods of sale of New Zealand dairy produce in the United Kingdom was “simply chaotic.” “In my opinion it is also a matter of supreme impor l nee that «s far as practicable all trade barriers between the United Kingdom and New Zealand should be removed as speedily as possible,” contended Mr. Goodfellow. “Exchange inflation, although of considerable value as a temporary measure, will be absorbed by increasing costs, and if maintained will, I believe, prove both dangerous and of no permanent value to the producers. Exchange inflation is dumping, and the British farmer is justly entitled to demand protective measures which may have serious repercussions on this country. As the Danish agreement expires in April next, we ane assured of u free market for possibly another season, but what then? The import duty of 10 per cent, authorised prior to Ottawa, which has not been enforced by Grea-t Britain, if put into operation would be a heavy blow to our dairy industry. Even a 5 per cent. Empire levy would be very costly. To make matters worse, the British farmer is now receiving a subsidy in a big increase in the production of fluid milk and cheese. The increase in British factory* cheese will mean a reduction in New Zealand cheese. We are compelled to look to the United Kingdom for our main market, and any act on our part whicji may be resented by any important section in that country must be regarded as a serious and short-sighted policy.” “I had it on good authority some months since that the United Kingdom would favourably consider a definite offer of a bilateral agreement by any Empire country on a reciprocal trade basis,” said Mr. Goodfellow. “If such an agreement could be negotiated, a free market might yet be retained and provision might bo made for a dumping duty to be applied to all imports of dairy produce into the United Kingdom from those countries which persists in dumping. By this means trade restrictions would be removed and prices would quickly recover/’