BUTTER FOR NORTH AMERICA

Dominion, Volume 28, Issue 99, 21 January 1935, Page 9

BUTTER FOR NORTH AMERICA

New Zealand Deal DROUGHT CAUSES PRODUCE SHORTAGE Approximately 10,000 cwt. of New Zealand butter is on shipment to New York on the terms of a straight-out sale. The shipments will meet a severe shortage, caused, by abnormal drought conditions in some parts of Canada and. the United. States. This business transaction emphasises the value of having official trade agents in oversea countries—offering scope for trade. When drought began to make its mark on agricultural production in North America, the New Zealand De-' partment of Industries and Commerce acted promptly, with the result that, in order to meet market needs in February and March of this year, importers on the eastern coast of the United arranged to purchase supplies of New Zealand butter through London. The extensive drought conditions in North America last year are described by Mr. J. W. Collins, New Zealand Trade Commissioner in Canada, who is back here for a time for the purpose >of making contact with New Zealand producers and others interested in the American markets. In the course of an interview, Mr. Collins said that the drought in Canada had bee.n combined with soil drift. “Alberta, Saskatchewan, and Manitoba have suffered very badly, particularly Saskatchewan and Manitoba. In Saskatchewan the drought conditions have been maintained for nearly three years, and in the vicinity of Regina the farmers have had no crops for three years. The mainstay is grain, particularly wheat, but during the dry weather there was such a low yield that it did not pay to harvest the crops. “In the summer of 1934, hundreds of thousands of tons of soil were blown 'from the fields—lifted from farm areas, and carried to the far north. That involved the Provincial and Federal Governments in enormous expense in shifting thousands of farmers to northern. areas where rainfall could be depended upon. In the middle west, the pastures were so scarce that seven to ten million cattle had to be slaughtered, and many millions had to be transported to new States where pastures were obtainable. Widespread Distress. “The distress of the farming community both in Canada and in the United States was so acute that grants were made by the Federal and provincial Governments* to provide sustenance and clothing-. The Governments also undertook the financial responsibility of finding new farms, and transporting families and stock. “In the 1932 season in Canada and the United States world prices were probably at their lowest ebb. It has been established that for the finest grade of wheat all that could be netted was 1/3 per bushel, that pork sold at from 1 to 3 cents, and beef at 1 cent, per lb. That condition is materially changed to-day, due very largely to the Ottawa Agreement allowing the Canadian farmers to get a market in the United Kingdom for pork and pork products. Wheat advanced to 87 cents per bushel and beef has also shown steady improvement. “The shortage of butter in the United States is undoubtedly due to the drought, combined with the slaughter of cattle, but the season during which this shortage will extend is likely to be a very brief one, as it is fully anticipated that in late February and March domestic production will approach domestic requirements. The Department of Industries and Commerce has done everything possible to ascertain the facts, and has been co-operating with the shippers in New Zealand in order to give the fullest commercial information as to market conditions.” Mr. Collins will be in New Zealand until Marell. During his visit he will got into touch with shippers and merchants interested in trade with North America anil the West Indies. He will visit Nelson, Christchurch, Dunedin. Invercargill and several North Island towns.