THE DAIRY PRODUCE TRADE.

Manawatu Standard, Volume XLVII, Issue 7, 6 December 1926, Page 6

THE DAIRY PRODUCE TRADE.

It is unfortunate that the policy of the Dairy Export Board in regard to its alleged price-fixing policy has been so much misrepresented, and that the responsibility for the storing of butter in such large quantities for such long periods in London should have been placed at its door. Until the Ist September last the board had no control over dairy Eroduce sent out of the Dominion. iast year’s strike of British seamen and its effect upon the marketing of our produce in London appear to have been overlooked, if not actually forgotten. For three or four months British ships were held up in Australian and New Zealand ports which should have been carryifig the primary products of both countries to British markets. Naturally congestion arose when stocks began to be delivered there. The general strike and the coal strike brought about a very serious restriction in the purchasing power of the British people, and, with a not unnatural desire to await the dawn of better prices, butter stocks were allowed to accumulate and, as everyone interested in the trade ought to know, those accumulated stocks were still mostly on hand when the Dairy Produce Board began to assume the responsibility for the marketing of our butter and cheese. The clearance of the non-control stock was only being slowly effected when the new season’s produce began to arrive in London some time in October, and with the strike still in full swing, prices were materially affected. There were, in addition, attempts made to prejudice the British public against New Zealand butter and cheese by those objecting to the control policy. In the development of that policy, however, we are inclined to think that prejudice will be broken down and the New Zealand product will again resume its ascendency, although the Danish article must continue to command high prices owing to the regular supplies which are received from Denmark practically all the year round, and to the fact that they are marketed within such a short time of their manufacture. While, as we have said, economy should be practised in both the State and private expenditure, it is also advisable that the local bodies should keep their expenditure down also, as the future is a little uncertain, and the country is under heavy obligations in respect of the National Debt. It is fortunate that such a considerable proportion of that debt is held in the Dominion, and that of the £11,723,852 constituting the annual interest charge (gross) as at the 31st March last, close upon £5,000,000 is payable to New Zealand holders, who are thus in a position to place the money in circulation again in New Zealand. On the whole the trade position appears better than it was six months ago.