The Guardian And Evening Star, with which is incorporated the West Coast limes. SATURDAY, OCTOBER 15, 1927. DAIRY PRODUCE trade.

Hokitika Guardian, 15 October 1927, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast limes. SATURDAY, OCTOBER 15, 1927. DAIRY PRODUCE trade.

An interesting review of the Homo Dairy Produce Trade appears in a late issue of the London Commerce Journal. In the course of his reference it is noted that like most other trades, the Home dairy produce trade has experienced and overcome many difficulties in recent years but, according to a review issued by W. Weddel and Co. Ltd., it is doubtful if there has ever been a period so consistently unsatisfactory as the year ended Juno 30th. 1927. Starting with an overwhelming accumulation of stocks hanging over a market paralysed by the effects of the most disastrous strike in the history of this country, and continuing under an attempt by the New Zealand Control Board to maintain prices at an artificial level, the year dragged its weary way to the end in an unbroken succession of disappointments for everybody concerned. There was no scarcity of butter on the British market at any time during the year. Indeed, supplies of most descriptions were more plentiful than ever. Owing to tho drought in Australia and the falling off in Canadian shipments, the quantity received from Empire sources was again smaller, hut this deficiency was more than made good by augmented shipments from most of the foreign sources of supply, especially Denmark, Holland and the Baltic countries. Out of the 261,597 tons of butter imported into Great Britain, only 34.3 per cent, came from British sources as compared with 39 per cent, in the preceding year. Importations of clieddar cheese at 151,421 tons were practically equal in volume to those in the preceding year, but here again heavier shipments from foreign sources were called upon to fill the gap caused by reduced Empire supplies. While the great bulk of our supplies of cheese from overseas is still of British origin, tho preponderance is not so great as it was some years ago, as several of the Continental sources of supply appear to be making efforts to regain the position they held before the war on the British market. Unfortunately nothing of a cheerful nature can bs said about the course of market prices for either butter or cheese during the past twelve months. The averages for the year of 178 s 3d per cwt. for Danish butter 163 s 6d for New Zealand and 144 s lid for Siberian, are sufficiently eloquent, revealing as they do a drop of 12s to 24s per cwt. from the average level of the preceding year. Undoubtedly tho chief reason for these lower prices was the reduced consumption of butter during that period as a result of the coal strike, hut the position was complicated by other factors, chief amongst which was the bad feeling engendered amongst buyers by the action of the New Zealand Dairy Produce Control Board, Cheese prices were

.maintained at a low but fairly steady level during the first five months of tile year, but thereafter, so far as New Zealand cheese was concerned moved in accordance with butter quotations. The average for the year, viz. 93s Gd for Canadian and 87s 6d for New Zealand were the lowest since 1915. ’Hie outlook does not promise any very material recovery. With supplies from most of the producing countries tending to increase, and tho general trade of. this coutiirv still in an unsatisfactory state, it seems unlikely, according to W. Wed del and Co. Ltd. that retail prices can he raised to any extent without. affecting the consumption. Producers must face this position if they hope to get their industry on to profitable lines again. The solution for the time being is to be found not in the direction of higher selling prices but in lower production costs, ’this opinion, published in London early last month, will be of interest to dairy farmers, affording as it does a considered opinion in regard to the Home market for the present season.