AMERICAN NOTIONS.

Dominion, Volume 7, Issue 2123, 15 April 1914, Page 9

AMERICAN NOTIONS.

OF NEW ZEALAND BUTTER.

SOME WILD CHARGES. EXPERT 4 EXPORTER IN REPLY. In yesterday's cablegrams from Sydney appeared the following message:— "The San Francisco correspondent of the Sydney 'Daily Telegraph' says that.the flooding of the markets on the Pacific Coast with New Zealand butter has had a disastrous effect on the sales of American produce. Prices havo fallen to a: record of 22 cents per lb., wholesale, for the best creamery butter.

"Violent criticism has been made respecting certain consignments of New Zealand butter. A Seattlo firm states that if New Zealand expects to do a considerable amount of butter business, sho must make radical changes in the matter of inspecting. When butter is bought under the New Zealand Government certificate as being strictly 'firsts, , and is found to bo 'seconds' or 'thirds,' it naturally causes firms to buy sparingly. The remedy lies in having.an expert to follow up tho inspectors,'and examine the butter before exportation. "Instances have been found where the butter had been held for thirty days after the Government officer had stamped it. Butter should be 'exported while still fresh." . When he was interviewed m' reference to the allegations contained in the foregoing cablegram, Mr. D. Guddie (Director of the Dairy Produce Division of the Department of Agriculture) made the following statement on the subject: "In view of the many satisfactory reports which have come to hand from merchants in America, it is unbelievable that the sweeping condemnation of the quality of our butter, as reported in the cable message, can be correct. As a matter of fact, wo have a complete record of the quality of every consignment 'of butter shipped to America since the change in the United States tariff opened -the door tD our products, arid in none of that butter "was there anything which would have opened up in the manner described in the cable message, provided, of course, that the butter received proper treatment after it arrived at the port of destination. The Crading System. "So far as the grading is concerned, it has been carried out in a similar manner to that of butter shipped to other markets, including London, and also Vancouver, and every care has been exercised to protect the interests of the buyer as well as those of the producer. The whole of the grading is carried out at the various ports, in New Zealand by experienced men, whose judgment has jrarely, if ever, been questioned in regard to its reliability. The system in vogue to-day has now been in force for about eighteen years, and although it js not infallible, it can be claimed that it gives almost entire satisfaction to those connected with the trade in other countries.

"Of course," Mr. Cuddie continued, "it may be that the particular butter referred to has been held back owing to.the fall in the market, and butter being a perishable product, is. would be!, bound to deteriorate to 6ome extent but for this, of course, we are .in no way responsible. ■ . "With regard to the flooding of the market which is- mentioned in the cablegram," said ■Mγ. .Cuddie,. ."all the. butter .se.nt to America, from Now: Zealand 'has' been purchased here by American merchants. Of course,- we have been anxious to sell, but the'y.hav.e been just as anxious to buy. "We are not responsiblo for the ov.er-supply. They should at anyrate be capable of gauging the requirements of the market. . When we take.the reports received in New Zealand regarding the quality of New Zealand buttor sent to the American market into consideration, we are not inclined to pay much attention to the wild charges which are reported in the cablegram. The reports I speak of have come from the people who aro handling New Zealand produce on the American market, and, in addition, some very flattering comments have been made by writers in the American Press upon the superior quality of New Zealand butter. It may be mentioned, -however, that several consignments of butter were shipped to San Francisco, which showed rather a small margin over first-grade, but this was done against the advice of this branch of the Department of Agriculture. The butter was really first-grade at the time ifc was examined, but its flavour was such that it could not be expected to hold up too well under adverse conditions, or any delay that might occur in placing it before the consumer. These remarks,.in any caso, only apply to some parcels of comparatively small quantity. As a general rule, the butter, shipped to San Francisco consisted of some of the very best brands that we export to the Pacific Coast. Portions of the same output have been sent both to London and to Vancouver, and about these consignments no complaints whatever havo been made. We know for 'a fact that the importers who handle butter on these markets are just as fastidious in regard to quality as they are in America. . ■ '

Where tho Trouble Started. "The gist of the whole business," Mr. Cuddie went on to remark, "seems to lie in the fact that the markets in America have gone against the importers. This is generally followed by something in the nature of a, complaint against the quality and sometimes against the grading of the produce. No doubt some of the American importers will have been left with a fairly large quantity on their hands." As to the suggestion in tho cablegram that what was wanted was that an expert should follow up tho inspectors, and examine tho butter before exportation, Mr. Cuddie remarked that the sender of the cablegram was evidently not acquainted with, tho grading methods in vogue in New Zealand. "Otherwise," he continued, "he would never have made such a statement. Olio box out of every churning of butter made is examined for_ quality; therefore tho examination of tlic whole parcel is a thoroughly comprehensive one. "Of course, in getting a footing on a new market such as this," said Mr. Cuddie, "wo must be prepared for criticism, more especially from the people who are moro directly, concerned with the marketing of the ; local article. It is wellknown that a good dealof this carping criticism has been in evidence since the advent of New Zealand butter, moro especially in tho Oregon State. I am Oliite satisfied, however, that if New Zealand shippers will continue to send to America nothing but their best brands, in time we shall build up a good trado between the two countries, notwithstanding the scathing criticism that has been vented." Equal to the Best. "Only a few days ago," Mr. Cuddio remarked in conclusion, "we received information from America to tho effect that some of our butter was so good and opened up so well there that it was 'qitilo snitable for what they call their 'extra brands,' that is to say, for tho best class of trade. This particular inossago referred to quite a large quantity of butter." BUSINESS MAN INTERVIEWED. MARKET "RIGGING" SUSPECTED. The above message was also referred yesterday to Mr. MacEwan (of Messrs. J. B. MacEwau and Co.), one of the local

butter exporters who lias been active in opening up a trade with the West Coast of the United States and Canada. Mr. SlaeEwan said that he thought he could giro a very shrewd guess as to the. American origin of tlae message. Ho intimated guardedly that there had been considerable rigging of.tho butter market on the Pacific Slope on the part of thoso interested in the local output and tho result had been reduced jtt'kes. As far as his information went tho variation had been about 6d. per lb., and that drop would mean a loss to the importers, but to suggest that it V.'aa the fault of our butter was quite wrong. They had been doing business ifer yeftrs with Vancouver,, and to reiket en tho system of grading hero which had been firmly accented not only in Vancouver, but in England and South Africa, was almost amusing. It was suggested that an expert should follow up the inspector, presumably to check his grading, which would mean that be (the export) would bo tho judge rather than the inspector, before the butter was shipped. Some of the American importers have jrono as far.as to threaten to do away with tho established system of bank credits on account of shipments, which would mean that shippers would stand out of their money until the American importer decided what th« quality of tho butter was, but they (the importers) had been assured that no one would ship under such conditions. During tho four or five years lie had besß exporting buttor to Vancouver, the Ivew .Zealand grading system had never been questioned, and, moreover, there had never been any trouble over coatraofcs. The alternative to shipping under our method, of classifying first, second, and third_ quality butter, if there wore a genuine, grievance as to the jango of the grades, would be for tie iiaportei-s to credit shippers with the price fixed on tho grading points, whatever tlioy might be, as it was impossible to know exactly how the butter was going to defrost. That, Mr. MaeEwati thought, was whero the remedy would lie if owt grading classification was objected to. but it was remarkable that the United States should object to a system which had satisfied the requirements of the rest of tho world. More About Methods. Respecting the complaint as to' instances where butter had been held for thirty days after the Government officer had stamped it, and that hotter should bo exported when fresh, Mr. Jl'Bwau stated ihat with only one boat every four weeks that was not possible. As toon as one shipment was dispatched, they started to collect the noxt.. That was the system that applied to shipments to London (only tho steamers in that case left every fortfiight), and Van* couver, and there had Eever been any complaint on that.score. Or course the requirements of different markets varied, and shippers want to know all about local standards, as being of value 'supplementary to the grading system. They had that ©xperi* ence now. At first tho tJnited States morchants wanted the- butter niofe heavily salted than was tfc.# case of butter sent to London and.South Afripa, and there was some difficulty in meeting requirements, now they said they could do with less salt, and later he thought they would accept tiie London standard. Now, however, they had got to know the requirements of tho United States, Mr. M'Ewan was Confident that that country would he importing larger quantities, and he anticipated no trouble next season.