The Guardian And Evening Star, with which is incorporated the West Coast Times TUESDAY, AUGUST 30, 1932. EXPORT OF PRODUCE.

Hokitika Guardian, 30 August 1932, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times TUESDAY, AUGUST 30, 1932. EXPORT OF PRODUCE.

The hopes of the dairying producer from the results of the conference at Ottawa are not too substantial, stateed a prominent exporter last week. He was of the. opinion that the duties might in the future createi a better demand fvor Dominion produce by discouraging foreign competition, hut the dairy farmer in New Zealand could certainly not look forward to extra butter-fat payments at once. It would appear that the duty of 15 per cent on cheese, which has already come into force, would bo a definite advantage to Empire producers, although the advantage of the cheese duty would be less, as practically tlm whole of the Cheddar cheese supplied to the United Kingdom came from Empire countries. About liatf of Britain’s annual buttor consumption of 400,000 tons came from Empire countries, hut only 20,000 of the 130,000 tons of cheese came from foreign sources. A quota would produce a more immediate benefit, because it would mean that foreign countries would be limited in their supplies to Britain. The duties would discourage foreigners from sending butter to England if the price was u"profitable, which it undoubtedly v. :.r> Way. Danish butter was now worth 110 s, which meant a return to the producer of 9id, f.0.b., a price which could not possibly pay

the Danish producer, especially as the price of bacon had fallen tremendously. The Dane imported a large percentage of his fodder, as he had to house his cows for siz months of the year., The cow'in Denmark was more like a machine, and if a profit could not be shown on the price, of the raw material, the manufneeture could not bo continued 1 indefinitely. It was not a great many years ago that Denmark had turned seriously to butter manufacture, and it would be difficult to say, in the event of this source of income failing, how she would, use her farm lands. The new duties would at least discourage Denmark front increasing dairy production. Up till about a year ago, Denmark shipped about .70 per cent, of her butter to England. The rest went to the Continent, but since Germany, France, the Netherlands, and Switzerland had adopted quotas, 90 per cent of Denmark’s butter was . shipped into the English markets. Quotas had been found very difficult to work by Continental countries which had adopted them, and probably thei same would be found if Britain adopted them. The cheese duty would probably have the effect of discouraging the consumption of loweit'-q.uality Dutch oheeso, from which a proportion of the fat had been extracted, This cheese did not have the food value of full cream cheese, and the price would he raised. The consumption, of Cheddar cheese in England was at present barely keeping pace ; with the increase in production. and if ; Nevy Zealand’s output increased as expected, it was essential to obtain a greater share of Britain’s creese markets. Consumption of cheese could not be stimulateed by low prices, ns coilld the consumption cf" butter. The duties would discourage countries from turning over from cheese to butter. As far as could be seen; at present, concluded the expert, the duties should not. be expected to raise prices. They should' rather he regarded as a brake on foreign exnorts into England, and should thus increase ' the total imports needed from' Empire countries.