DAIRY TRADE

Evening Post, Volume CXV, Issue 71, 25 March 1933, Page 16

DAIRY TRADE

BRITISH POSITION

SIDELIGHTS ON INDUSTRY

"Evening Post," March 25,

New Zealand butter is quoted in London today at between 71s and 72s per cwt, And: the market gives no indication of imwrovement. However, sales of butter for : If arch-April shipment were reported as having been made last week at up to 9%d per Ib, free on board. Then the price dropped'to 9d; but has since improved to 9 l-Bd, at which, it is reported, sales have been made this week.

There will be heavy arrivals of New I 'Zealand butter in the United Kingdom in | May and June, according to the Dairy Board's statement of shipping space allotted in vessels leaving the Dominion, mainly for London, during the remaining days of this month and in April and May. The- arrivals for-,May and June will be 858,700 "boxes o£ butter and 270,600 crates of cheese. Of the butter 468,700 boxes .•will arrive in' May and 390,000 boxes will arrive in June.- Of the 26 vessels loading and to load, seven will take dairy cargoes .direct to West Coast ports in the United Kingdom. These figures are, subject' to 'alteration.' HOME PRODUCTS. Great Britain is almost the only market still open to New Zealand for milk 'products, when comparison is made with the relatively negligible quantities of butter and cheese shipped to. • Canada and other countries, and the comparatively small trade done in other milk products to markets" outside the British Isles. But the dairy industry of England, Scotland, Wales, and Northern Ireland (with which pork and bacon, and sometimes eggs, are associated) has been restive under the ■market conditions for .its products brought, about by the vast quantities of butter, and in large part of cheese, sent to Britain; by Continental and British : Dominions' suppliers; sale of liquid milk, iowever, appears to be the mainstay of that industry. The matter has engaged the attention, of a Milk Commission, which has gone thoroughly into'the matter, and whose report is jiist pnblished;; It is shown that for the year ended June 4, 1931, production •andißales-off-the1 farms of England and Wales Vere as follows:—

i '" '■' ■ . ■ cwt. Butter 651,000 Cheese ~.:......... ..." 547,000 i .... ; - ,- ga]s _ : Milk,and- cream ... ;•.;.....-.- 1,335T,000 Since 1924, butter production increased 14 per cent., cheese 9 per. cent., and liquid milk and cream 100 per cent. These quantities of butter and cheese appear insignificant when compared with New Zealand's, export alone, and (leaving out local consumption) .for 12 months ended.March 31, ' 1932, of 1,906,499cwt butter and' 1,499,210 cwt cheese. HEAVY IMPORTS. The Milk Commission a"bove referred to remarked on the expansion: of British im- ' ports of milk products.- During three years, 1929*31, - the average' quantities of such imports retained for domestic consumption (i.e., total imports less reexports) were >s :follpws;-^ :- '■'■■: " .- ■;■ ■ CWt. Butter ■ ;,Vi?V.".v.->..v/«;X. 6,877,000 Cheese 2,967,000 Cream! >' .. v..: X .... .'•'.' :.....■ ' 149,000 Condensed milk ~...;....>.. 2,767,000 . Milk powder ,: 282,000 Preserved milk- .!-.-.»»„..v..'';. 3,000 Liquid milk 63,000 Condensed, milk, includes whole, separated, and skimmed milk: , • ' ■ The largest -external sources of butter supplies are Denmark,' New Zealand, and Australia, and of cheese .New Zealand and Canada. The . Commission, -in- dealing with butter, stated that imports of that article from foreign sources are now subject to a duty of 15s per cwt, and: imports from the Irish Free State to a duty of 40 per cent, ad valorem. "There exists in this

ejountry (Great Britain) at present little or no.butter industry' oh the creamery system which could benefit from increased butter prices on the home market. The Dominion producer "is iir a-much better posiIpon than the English manufacturer to expand production for the purpose of taking advantage of higher butter prices in the Engljph market. A further complication arises from the tendency towards the substitution of margarine for butter when the price of the~ latter rises above a certain point—a tendency which, in view of the present low purchasing power of large sections of the community, must always be borne. ■ • .