OUR EXPORT BUTTER TRADE.

Dominion, Volume 4, Issue 1089, 30 March 1911, Page 8

OUR EXPORT BUTTER TRADE.

. MINISTER FOR AGRICULTURE'S ..''.■ ' views. The Minister for Agriculture (Hon. Thomas Mackenzie) was interviewed by a Dominion representative concerning the export'butter trade of New Zealand. He • said: "While tho prices now bein'g realised {or New Zealand and Danish butters show a' wide innrgin in favour of tho , 'lattei, it is a difficult matter for us at ( this end to ascertain the cause or causes. , It is reasonable to suppose, however, that j it may be duo to mora than one influence. ( Instances have been recorded where Dan- | ish butter, which is sold mainly in the 1 ■ Midlands and northern districts of Bng- . 'land, has been rising in price from-week | ,to week, the supply not being, equal to j the demand'; while in the Loudon and j South of England markets, French but- | ter has been declining'in price week after , (week during the same period, the'ex- | planation being that' although there, was j , an over-supply of the French article, it 'could not be marketed in the Midlands j and in the North of England to leplacu j the shortage of Danish butter, and to , 16ome extent the; same would apply-in the : case of our own butter. ( ■ The' Danes.and Market' Control. ' ,"It is well'known that the Danes can I exercise a control over the prico. of then I , butter; for instance', if 3000 casks are sent 1 'on.to a' certain market in the week, and I the .demand is brisk, their official quota- 1 tion is usually raised one kroner or niorv. 1 On the. other hand, if a portion .of' tho ( consignment is not'sold,'-arid three 01 i four . hundred casks are .left over, th« i , Butter; Committee'would soon reduce thb i price. ''■ . '~ . i ■ ' .. ■ '■ ' i Not in' Direct Competition. 1 "Danish butter-.does not come into direct'.competition with New Zealand, as ' the customers' ,fnr it are practically tho ' 'sitme all the year round. There lias been ' 110' appreciable'; increase ' in the Danish < output for, some years,, but the position J (is' totally different; in the case of New Zealand arid. Australia. ,'Oitr returns show I tin increase of (I per cent, for this'> sea- ; sou, and that of Australia between 40 ' and 50 per cent. When it is remembered" ] that Australian butter has inoreased by i nearly 90. per cent, last'year, it will bev '. eeen. that this factor must be taken into account when considering the position., ■, ."„■ • Methods of Marketing. 1 "It is well', known that some of the : most influential firms in London were not ! selected as' those to whom butter was to ' be'shipped on consignment, and they may use their influence against, any change in (the methods of .marketing. -These people, 110 doubt, command a large portion of the ' trade, and have connections with 1 many of the merchants who sell to the '. Tetailers, and, boing financially strong, ; they are in a position to influence the ' prices to their own advantage and against those of their rivals. Tho diversion of .different brands of butter to other channels may also affect tho prices. , , ~ '.New.'Zealand'Quality-. Good., "In, his report, dated January 6, tho Produce' Commissioner stated that- 'tho reported ■ heavy shipments from. Australia Btill-help to depress the' market,' 'arid 'lie also mentioned that faltliough '. tho market had'been'dull and tho prices receding, thero had not been any complaint regarding the. quality of Now . Zealand butter this year/ This has been confirmed by reports from the merchants ' who'' handle New Zealand butter. A noticeable improvement has also been reported by the 'graders/; Wliose duties are to' grade the produce before shipment. Thero is no reason, therefore, to believe trmt the. ,' prices have been lower as the. result'*' ; of ! ; New-Zealand butter opening up in poor condition." 1