DAIRY PRODUCE

Press, Volume LXXI, Issue 21413, 4 March 1935, Page 13

DAIRY PRODUCE

LONDON QUOTATIONS SLOW DEMAND The New Zealand Dairy Produce Board has received the following market report from its London Office, dated March 1: Butter—New Zealand salted, 80s to 81s, ex. 82s (last week 83s to 85s}, equals approx. 9.28 d f.0.b.; unsalted, 88s to 90s (90s to 925). Australian salted, 80s to 81s < 82s to 84s); unsalted. 86s to 88s (88s to 90s). Danish, 90s f.0.b., 112s spot (90s and 112s). Dutch unsalted, 90s to 94s (99s to 107s). Latvian unsalted, 90s (955). Polish salted, 78s to 80s (82s to 84s). General demand slow. Retail prives unchanged, Danish Is 2d, New Zealand lid. Clieese—New Zealand white and coloured, 46s to 46s 6d, 4.92 d f.0.b., (white 47s Cd to 48s, coloured 47s to'4Bs last week) Australian white 42s to 44s (465); coloured 45s (45s to 465). Canadian white and coloured, 60s to 62s 'white 60s, coloured 60s to 625). Market quiet. New Zealand retail price unchanged. Gd. English finest farmers, 82s to .90s (82s to 90s). English factory cheese, 43s to 46s (41s to 48s). The minimum f.o.b. prices for tho period from March 2 until further notice arc: Butter, 9„d less l-> per cent, commission (78s 9d c.i.f.e.). Cheese, s',d, less H per cent, commission (45s lid c.i.f.e.). WEDDEL AND .COMPANY'S REPORT ' The following market report was received on Saturday morning by A. H. Turnbull and Company from their principals, Messrs W. Weddel and Company, London;— Butter—The market is quiet, with no demand. Danish 112s, New Zealand finest 80s, Kangaroo 80s.

Cheese—The market is slow. New Zealand. white and coloured 465, Canadian 60s. THE LEVY PRINCIPLE TRADE CONCERN The latest developments in the meat trade negotiations, which involve a proposed levy on Empire and foreign imports in order to assist the British producer, may have a bearing on the dairy produce trade, according to views held in some quarters, states the "New Zealand Herald." This opinion is based broadly on the assumption that Great Britain is determined to raise the return to its own producers to remunerative levels.

Quotas not having proved acceptable, the alternative is import duties or levies on foodstuffs which come into competition with home-grown produce. At present the British Government is subsidising its beef producers and milk producers, but it is assumed that it does not want to carry this burden indefinitely or even until higher prices are ruling.

The Ottawa agreement does not expire until August, 1937, but for eggs, poultry, butter, cheese, and milk products, free entry for New Zealand produce is given only for "three years certain," or until November 15, 1935. Position After November After November the British Government, if it considers it necessary in the interests of the United Kingdom producer, may impose a preferential duty on New Zealand produce or, in consultation with the New Zealand Government, may bring into operation quantitative regulation of supplies. There is at present a duty of 15s per cwt on foreign butter, of 15 per cent, ad valorem on cheese and also duties on foreign eggs, condensed milk and milk powder. In March. 1934, after discussion on quotas for dairy produce, the United Kingdom Government advised the New Zealand Government that it had made other arrangements for the benefit of its milk producers. These arrangements meant, the operation of the British milk subsidy scheme, which provided for the payment to producers for two years from April 1. 1934, of such sums as might be requried to raise the value of milk used for milk products to a minimum of 5d a gallon in summer and 6d a gallon in winter. Prices at the time equalled about 3Jd a gallon. Cost of British Milk Subsidy

This was a short-term arrangement and at the same time a long-range policy was initiated for increasing milk consumption and cleaning up "herds. The subsidies now being paid are really advances made through milk marketing boards and they are repayable by the industry, at least nominally. However, Mr W. Elliot. Minister for Agriculture, stated that if prices did not rise it was difficult to see how repayment could be expected. The subsidy for the first year of operation of the schmee was expected to be about £1,500,000. As prices for butter and cheese have shown no permanent advance since April, 1934, presumably that amount or even more, if the conumption of raw milk has not increased, will be paid for the second year of operation, ending on April 1, 1936. It is considered possible that Great Britain may endeavour to secure from a levy on imports of dairy produce the sum needed to continue the subsidv until the period of low prices ends. If such proposals are made, the problem for New Zealand will be even greater than in the meat trade. On current prices it is difficult to see how the industry could possibly afford to absorb a levy or duty.