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Hokitika Guardian, 26 March 1930, Page 4

The dairying ■‘industry has responded 1 well to the call of more and more production. There has been a marked increase in production, and this has made some amends for low prues. Prices have dropped unexpectedly low. It has been the practice when butter is retailed cheaply at Home for the consumption to increase, that the enlarged demand causes prices to rise. Just at present this is not the case. The retailing of butter in London at Is 4d per pound lias not caused any uplift in sale prices. This is due apparently to Australian butter being pushed on to the market at any price available to help restore the adverse trading balance under which the Commonwealth groans at present. The practice it appears is to sell f.o.h. Australian port, so as to secure spot cash and help the general situation. This is another instance of the raniitications of trading, and showing how the juxta position of Now Zealand to Australia affects one another at times in unexpected ways. The writers on agricultural affairs in the Dominion continue to take satisfaction in noting that the low prices- for dairy produce on the London market will be compensated for to some e .tent by the increased butter fat production in New Zealand as a whole. The higher yield calls for good herds and plenty of food, so that along those lines, dairymen must lie alert, and lie prepared to maintain the best of conditions in and about the farm. For the seven months of the dairying season ended February, there was an increase, we are told, of 8.08 per cent, in the Dominion butter-fat production compared with that of the corresponding period of I lie previous year. It is being calculated that the total prodne-

..on for the season will represent a 10 per cent, increase over the preceding one. On this basis it is assumed New Zealand’s cheque for the dairy produce sold to London should just a Lon l equal that for last season when the prices for both butter and cheese' were much higher than they are now, but the quantity exported, was considerably lower. At the same time u has to bo borne in mind that heavy nrodurtion is resulting in all countries, so that it is essential to keep up the highest returns possible from herds ir income is to he maintained at the required level to meet expenditure. Regarding the Australian competition, it is worthy of note, that while the New Zealand commodity was quoted at about 'lsos per cent, the Australian ii'Hcle was bringing 138 s per cent. The drop in price for New Zealand butter is nearly 30s less than that of a year ago, a decline which means a great ileal to the butter producers of this country. In view of the general outlook the need for maintaining the highest rate of production possible is self-evident.