WELLINGTON NEWS

Hokitika Guardian, 28 May 1927, Page 1

WELLINGTON NEWS

(Special to “ Guardian.”)

A POTENT lAI. MAH KKT \Y ELIJXGTON, May -26. The ipiestioo of the control of dairy produce has. for the moment, ceased to have any economic importance and has degenerated int.p a political fracas In-tween the leaders of the two political parties. The I'rime Minister has fold his story of what happened in London while he was there attending the Imperial Conference. Mr II L. Holland has attacked the Prime Minister lor his alleged attack on control, and Mr Grounds tells another story and this political battle is not. eery edifying and is of no interest to tlit.* producers. At the moment all makes of butter are fetching good prices, and this is due entirely to an active demand. Tiie improvement that lias recent lv taken place in the butter market is indirectly due to American operations. Ihe I mted Staten has taken a fair quantity el New Zealand butter, and this undoubtedly helped in steadying the market. It seems not unlikely that America will continue to buy New Zealand butter, and increase her imports owing to economic changes that are operating in that country. The 1 uitetl States impose a duty ot Pi cents -or (id per lb on imported butter. But it is inevitable that America must rely more and more on foreign imported butter. In that country the consumption of dairy produce is increasing not only by the increase in population, but also by higher per capita use. r J his is in striking contrast with the consumption ol wheat and meat, It is estimated that the decline in flour consumption has bee*i twenty-one per cent in twentyone years. 'I he American Medical Association attributes this to the tendency to replace cereals with sugar: to the* fuel tlint there is more machine and cilice work, and less manual labour than formerly, resulting in a dei line in Ihe total per i apila tend requirements; and along with greater prospi rit\ of labourers since the war lias collie diversili' ation of diet, and increased consumption ot mure expensive foods. As a consequence Hour lias keen replayed Lo smile extent hy fruits, vegetaldes and dairy products. According to all reports the dairy industry in the I liilcd States in I• (> had one ot the must prosperous yearin its history. "Hoard's Dairyman" in it.-, review ot dairy markets in 11120 says: "Ike spread between the lied

cosl ol market milk and pit ■’ received v.a-. 1.71 dollar-, in 192(1. This is 23 cents alane 1925. Pr.idueers ol cream made inio butter received a let urn ol 25.9 cents per lb ial above

p.i (| c osts in 1925. which is 2.1 cents above the spread in 1925. The number of rows has decrease I Irani 22.1 S 1,C 73 on .Innunr\ I. 1925. to 22.1 IS.(I!)H u January I. !92d. ami finally to 21.521.ifi0 on January I. l!)2i. This

is a decrease ill two years ol bio l '' l (lead, or ncarh three per cent. 'I hat there is mi immediate danger ul over production hy incren-e in number ot c oVs is indicated hy t!i>■ laet that there are 1 15.0111) fewer heifers between one. and two years than there were tno years ago.'’ Butter prices are high in the United States; reserve stocks are low and there i> an active consumptive demand. As a matter of fact Initler is bringing much higher prices in the United States than in any other country. During the past few months a considerable quantity of foreign butter was imported into the United States notwithstanding the duty ot 12 cents. It is obvious that, sooner or later, if the per capita consumption continues on the present, high scale, America must rely inure and more on foreign supplies to meet the domestic demand, and New Zealand is hound to secure a large* share o! this trade. Kven if the American per capita consumption declines the growth ol population will make up the deficiency, and this increase in the human population must displace the cattle population. The Americans are also depleting their heel" cattle. The aggregate amount of beef turned out by slaughtering establishments in 11)20 was the largest on record. Du the other hand the number ot hogs slaughtered was the lowest since 11)21. hut nevertheless ran into 40,030,208. The number of sheep and lambs killed under Fodcral inspection was 12,!KRi.8<8, Hie largest since 1021. Ihe 1 nited States during the last six years showed a decrease in beef cattle of 10.700.000 head, or twenty-four per sent of the total number, and as against that she was increasing in population at the rate of two millions a year. New Zealand (•an never hope to take tiny prominent part in the export of heel, hut. m dairy produce there is hope for gieaf expansion, ami there will he for a very long time to come a growing market for all the butter and cheese we can export, and for that reason the dairy industry deserves to he encouraged to the utmost.