WELLINGTON NEWS

Hokitika Guardian, 15 September 1927, Page 4

WELLINGTON NEWS

butter outlook bright

(Special to “ Guardian

WELLINGTON, Sept: 12

The blitter market bus improved wonderfully during the past tow weeks and tho outlook is decidedly bright. For this improvement, strange as it may seem, we are indebted to *tlie United States, notwithstanding the staggering duty of (id or 12 cents per lb. The circumstances are these: The demand for milk and milk products in the United States is expanding, and the demand exceeds the domestic supply. To supplement the latter Canada lias been drawn upon to such an extent for milk and cream that she is umtbi'e to manufacture butter and cheese for export. Great Britain depends largely on Canadian cheese, but Canada is now able to supply very little, indeed the Canadian position lias become s» bad that she will be obliged to import a considerable quantity of butter and cheese. The American demand for milk and cream which will expand rather than contract will stimulate production in Canada, even so she will be eliminated ’as a competitor in the British market, her energies will be devoted to supplying the wants of her neighbour. But the United States will require increasing quantities of butter, and the American position is briefly indicated in “The Creamery Journal,” published in the Mate of lowa, which, tinder the caption of “The Future Butter Supply,” says: “ It was not so very long ago that a cry was heard about the possibility of our production of dairy products. While it looked at one time there might be a calamity from too much dairy products, it proved to be only a passing condition and

not one that represented a trend within tho industry itself. On tho other hand the question is now arising as to where the future supply of butter is to come from to supply the needs ot this country. According to the Federal Statistics the cow population is on the decrease, and while this may be compensated for by increased production per cow the normal increase in population wifi more than use up whatever increase in production may result from. this cause. Wore inroads are beings made on the supply of milk furnishing the creameries’ supply of butter-flit. 1 The cities are constantly demanding more milk, the bakers, confectioners; and many other industries are increasing their use of milk so that the sup-. ply available for butter is being dimin-| isl'ied. Tho tariff is practically prohibi- j tivo under normal prices. It would j seem that, whenever tho tariff permitted the importation of butter more farmers would turn to milking, yet it seems j that tho constant care required in dairying presents a barrier that even' high prices will not. surmount. It. seems there is a very large percentage of farmers wlm would rather earn a smaller income, than they could earn by dairying. So it is not a question of over-production, hut of who is going to supply us with our butter in the future.” Thus it is quito apparent that the United States is a potential market for butter, and New Zealand should secure a share of this trade!! We are. however, likely to havo strong' competitors in Canada and the Argentine. !

THE CAST WOOL SEASON. According to Dalgety and Co’s Wool Review, the average per halo last season, despite an increased production of substantial' proprtions, showed a marked increase, being £2l 13s iter bale as compared with £2O 10s ‘ld in ibe 19252(5 season. The grand total of the amount realised for wool sold in Australia and Now Zealand amounted to £04,818,586 as compared with £65,980,8(52 In 1925-26, and £69,083,182 in 192425. It is interesting to note for comparative' purposes that the gross values of the Australian sales in the pre-war years was £26,079,530, and during the wool appraisement scheme tho best I year netted £00.34(5,547. Tho 2,993,933 i bales sold in Australia and New Zealand weighed 950.513,4151 b, ns compared with 3.14(5,910 bales weighing i 997.137.0151 b in 1925-20 and 071,131,133 lb in 1924-25. The average weight per bale was 319i’b as compared with 3171 b in 1925-20. The net production of the Commonwealth was 2.712.433 hales compared with 2,377.800 bales, an Increase of 334.572 bales. The not production of New Zealand was 537,00 ft bales, an increase of 1090 bales on tho previous season.