EXPORT OF DAIRY PRODUCE

Waikato Times, Volume 92, Issue 14263, 14 January 1920, Page 2

EXPORT OF DAIRY PRODUCE

FREE MARKET OR CONTROL? PROFIT OUT OF DOMINIONS. POSITION IN NEW ZEALAND. la a communication to the dairy companies on the question of the export of produce after the present Government contracts expire on July 31st next, the National Dairy Association states that with a view to securing intormation on this point, Mr Ellison had been cabled to, and Mr Massey, Prime Minister, had been asked if lie would, in the interests of the producers, cable London and ascertain, if possible, the mind of the Imperial authorities in this connection. Mr Massey had immediately agreed to send the necessary cable, but up to the present no reply had been received. Mr Ellison had cabled as follows: — “With reference to the contracts for butter and cheese, the Ministry are unwilling to make a definite announcement. My opinion is that the price of butter is likely to be controlled for two or possibly three years more. Cheese may be. released next year, but this depends on outside demand for the world’s supplies. I anticipate that the Ministry will want to make further contracts." The letter continued that meetings of butter and cheese producers would be held this month to consider the position, and discussion would no doubt centre around the question of whether the producers should demand a free market or if possible a sale to the Imperial authorities. The position of food supplies to the world was almost desperate, and it was more than likely that Mr Ellison’s opinion that the price ■of butter would be controlled for two or three years, was the correct one. If butter prices were going to be controlled it was almost a certainty that •cheese prices would also be controlled. The question then arose: If prices are go : ng to be controlled in England, will the Imperial authorities purchase the New Zealand output or will they allow the producers to ship through their own channels to any market they choose? The position which arose in Canada in connection with' the cheese produce leads one to believe that if there were price restrictions in England, the Imperial authorities would purchase the New Zealand output. If this was to be the decision of the Imperial authorities, what was going to be the price? The day had passed when the British Government was entitled to make a profit out of the producers of the Dominion and the outcry against the Home authorities over profiteering in connection and wool and meat might well apply to dairy produce. The producers of New Zealand were entitled to one price- and one price only, viz., a retail price in England and charges for handling. To secure this price the letter stated that in the event of the Imperial authorities deciding to appoint one or more representatives from, both the butter and cheese committees and proceed to London to negotiate a deal, Mr Massey, as representating the Dominion Government would no doubt be willing to lend every support in this direction. Canada had invariably secured better prices for produce than New Zealand, due mainly to the fact that* representatives of the Imperial Government visited Canada and made a direct deal with the representative’s of the producers. They were not likely to send representatives to New Zealand, so let the representatives of the produces hi ■ vn to London. There would cer-t-pni,- be a keen demand amongst pro-d-oer" and rightly so, for a free market. end the suggestion to send representatives to London was well worth c n,, iideration to fight for that free market.

The meeting resolved to support the suggestion.