OUR BUTTER

Evening Post, Volume CXII, Issue 55, 2 September 1926, Page 9

OUR BUTTER

SEVERE COMPETITION AHEAD PRODUCTION MUST BE IMPROVED REPORT OF EMPIRE ECONOMIC COMMITTEE (United Presa Association. —Copyright) (Australian-New Zealand Cable Aoan.) (Received 2nd September, 12.30 pjn.) . LONDON, Ist September.', ' Outstanding among the conclusions in the Imperial Economic Committee's report on the prepare tion and marketing of Empire dairy produce is a ■warning that Empire producers must effect economies in order to meet the inevitable severe competition for Britain's trade. The United Kingdom in 1924 spent £63,000,000 in the purchase of butter and cheese, of■ which £33,000,000, or 52 per cent, came from the Empire. The annual consumption of butter per capita in Britain had increased in the last twenty years from 151 Vto 161b, compared with 281b in Canada and 271b in Australia. : Tho British demand for,butter and cheese was expanding, but there were indications that foreign countries -were making considerable efforts to- recover and improve their pre-war, trade positions. Most likely in the next few years competition would be more severe, notably from Argentina, Siberia. Eussia, and the Baltic States. In the competing Northern countries wages and standards of living were relatively low. ..-■,' ECONOMIES NECESSARY. The marketing and preparing of Empire dairy produce had greatly improved in recent years. "While there was room for further improvement," states the committee, "we are of opinion that it is necessary, .to look in other directions for economies necessary to meet the competition which we foresee. Onr main conclusion is that"' both at Home and overseas it will, not bo practicable to maintain the: present standards of living among those dependent on the dairy industry, ua- ■. less the farming interests, in order to meet such cutting prices as may come from increased, competition, prepare, without delay, for the adoption of more efficient and cheaper methods of production. ■ ■'•-.-■ _ "Fortunately, there is room fJr such improvement by means of increased output, without any great increase in the cost. The quantity of milk and butter-fat from the individual cow and the number of cows to the aero can be greatly increased. Cow .testing should be generally adopted. By attention to breeding and the improvement of pastures and fodder crops a. greatly increased output may be obtained without an equivalent additional cost. . ■ ' ; "Owing to the distance of the South-orn-Dominions the bulk of their supplies do not arrive till the beginning of the year, whereas the northern countries supplies are relatively: close at hand, marketed in the' greatest quantity during the spring/ or within three or.four months..after the southern. Prices sympathetically follow supplies, lnere are two low periods, January and February, and April and May, but there is usually; a steady rise in the'latter naif .of the year. Denmark, by means or winter dairying, has succeeded in regularising her exports to Britain, so that the monthly, r^antities vary little ■msi tho season." ■■_ WINTER DAIRYING UEGED. The report strongly urged all parts of the Empire carefully to consider the practicability of more winter dairying. Where this is impracticable and storago must be resorted to in order to regularise supplies," continues the report, we recommend that storage as far as possible should be in tho country of production, and that only, so much be stored in the United Kingdom as is necessary to counterbalance the irregular arrival of ships. We reinforce the recommendations vof the Linlithgow Committee of -the Eoyal Commission on Food Prices that statistics of produce held in storage should be published as is done, in New Zealand." ', . : Dealing with the effect of retail prices on consumption, the committee emphasises that a fall in price instantly, increases consumption. "The retailer naturally objects to too frequent changes, and claims that by a few changes only can he, on an, average, convey to the consumer the hett efiect of many nps and downs of-the wholesale price. This may be so, although many are of opinion that there is often undue lag in retail prices when wholesale prices are falling. A quicker response in xeta.il prices, especially at the end of the year, when the wholesale price is falling owing to the arrival of overseas stocks, should result in a definite increase, of consumption and the prevention of the accumulation of large stocks and a steadying of wholesale prices." EFFECT OP CONTROL BOARDS.' Dealing with control boards the report says:—1 . ; >-.■■■- "We recognise that the condi---.; tions of tlie market, irregular arrivals, and fluctuations in prices, justified tae producers in taking special steps to safeguard their interests. The remedy for speculation arising from price fluctuations is regularisation of supplies and » stimulation of demand. : "There is a natural fear among traders that such control bodies might be tempted to abuse their powers. We strongly urge on these bodies a policy of moderation in the use of their powers. Should they follow the policy of holding up supplies for reserved prices, wiiich was. ■ adopted hy some New Zealand' factories, they would bo venturing, on the dangerous experiment of mass speculation, but, if the limit of their activities is the regulation of shipments and the development cf marketing, they will benefit both tho producers and consumers." "There is little to be said regard* ing cheese. No- less than 90 per cent.' United Kingdom demand ia already met from within the Empire." The Committee repeats its advocacy of identification of origin, publicity, and research in relation to dairy produced . ■ Tho Committeq is emphatic in 'its opinion that there is no reason why freights from Australia should be' higher than from New Zealand. 'The Committee also examines the methods 'Of selling Australian and New Zealand butter in. London and expresses a hope to see a system evolved rendering tha overseas producers as little dependent upon the importer for financing thei* produce as the Danes are. : ' ■ . The Committeo thinks that good may; result from control bodies giving a! weekly lead as a guido to market price, but the Committee, is definitely opposed to an attempt at fixed price 3.