DAIRY EXPORT

Evening Post, Volume CX, Issue 68, 17 September 1930, Page 14

DAIRY EXPORT

THE XEW SEASON

PRODUCTION AND PROSPECTS

The .1030-31 dairy; export seafon is begun, and the state of the overseas market, i.e., the British-market, which is about all that is left, is not encouraging. Over that market still lowers the cloud of trade depression, with restricted purchasing power; stocks, of both butter and cheese, in the United Kingdom and in New Zealand itself. (Reference to .these stock figures is made hereunder.) But two things favour- the export trade in dairy produce: (1) Increased production; (2) favourable exchange. They will far from compensate producers for the wide disparity between current and prospective values for butter and cheese when comparison is made with returns of the early part of last season, still they will heir). | The Dairy \Board reports first shipments of butter and cheese this season with those for the month of August la'.t year as follow: — ! Uuttcr. Cheese. 1&30. 1920. 19:S0. 1929. Tons. Tons. United Kingdom .. 3035, 23SS 317-1 2Sf<3 Australia — _~ 1 Canada ......... ■-■><* '•>• •' Honolulu :.. 2.) ..!) — — Other countries ... 147 a> - - 3465 322S 31S0 2597 London prices at the opening of the season this year and last compare as j follow:— ■ | ' ■ . ■ ' Butter. . Cheese, i ISfh Scot Per cwt, Per owl. j 30 . 124/-tol2S/- 72/-to 74/----1929 ......: 175/- to ISO/- 33/- to 94/Tie fall in price this season is roughly 52s per cwt, or about ,5%d per pound for both. Latest cabled information is to the efiect that the markets for both cheese and butter have improved this week by 2b per', cwt on .the above prices. \Bnt the stock position must be taken iuto account, ,and tire Dairy ■ Board ■ has ascertained that it is'as follows:— ' .',''■ Butter. Cheese. Tinned ''Kingdom .-...,., 84^00 lSjeT United States'. -63,882 38,952 r*snnrl» ......*••••••■ 17.6tj'> 13,5^0 Ncw^e^nd-:::::::::,:... ?:m ».**» PRODUCE IN STOCK. Stocks of butter in the Uuited Kingdom are all butters, and are but 200 tons more than at Ist September, 1929. Canadian holdings of Imtter are C 528 tons more this year; United States stocks of butter are less by 1552 tons than at Ist September, 1929. Cheese held in the United Kingdom is confined to Canadian, Australian, and New Zealand, and amounts to about the same as last year. Cheese stocks in New Zealand are double those held-here at Ist September, 1929. The current season promises to be very productive. The weather has been good, pastures have' been well manured, herdtesting has greatly increased milk production. Already exports for the season show an increase of 237 tons of butter and 2S3' tons of cheese over August o£ last year. Australian shipments show a very substantial increase for the period, butter being 1557 tons compared with 646 tons for August, 1929, and' cheese 292 tons compared with but 20 tons for August, 1929. Argentine shipments of butter have likewise increased to 890 from 23 tons. The position disclosed iv the above returns is a vast quantity of butter available for ■ the British market represented by probably continued increased exports from European countries, also from Argentina and Australia, possibly from Canada. In passing it may be mentioned that the price in Canada to-day is 26 cents per pound, or say Is Id, at which price it will not pay New Zealand to market, assuming that' the butter would not have to face the new duty of 4 cents per pound, to operate from 12th of next month. THE FUTURE. Xew Zealand dairymen are resigned to intense competition in the British markets, and returns for the eight months ended 31st- August last show whence that competition is to be expected. Russian contributions are Jess by two-thirds for the period as compared. with the first eight months of 1929, but Denmark, Argentine, Irish Free State, Australia, and Sweden and Finland combined all show increases, as ■ did New Zealand. Total British- imports from all sources for the eight months were 234.700 tons butter, compared with 233,630 tons for the corresponding period of last year. New Zealand continues- to hold its place afc the top of the list in the British cheese imports, Canada second. Of the total imported for eight, months, 103,350 tons, New Zealand contributed 75,745 and Canada 11,791. But competition in cheese of the cheddar type is expected in the future from. Baltic countries. Third and fourth respectively on the list of British imports of' cheese are Holland and Italy, but these make cheese peculiar, to themselves.

The production, stock, and price position have been referred to. The great question is what of the future of the market? That is best answered by the fact that bo far inquiries have failed to track down any buying forward in New Zealand this season. Last year butter was bought forward for Canada, and cheese for England sold at B%d and a shade over. This season buyers are conspicuous by their absence. Last year, of the August cheese shipments 76 per cent, were on consignment and 24 per cent, was sold; this season 85 per cent, is consigned'and 15 per cent. sold. Of the butter 80 per cent, was consigned, compared with 73 per cent, last season. Advance's made on consignments to-day are lid per pound for butter and 6d per pound for cheese, as from sth September.