The Guardian And Evening Star, with which is incorporated the West Coast Times SATURDAY, FEBRUARY 25, 1933. THE BUTTER BUSINESS.

Hokitika Guardian, 25 February 1933, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times SATURDAY, FEBRUARY 25, 1933. THE BUTTER BUSINESS.

A report issued from Wellington this week quotes butter from New Zealand in London at 75s per cwt. Even with the benefit of the exchange, this will make about per lb. for finest butter, and transport and grading charges have then to he deducted. Last week 1533 tons of butter went into London, as against 1983 tons the previous week, theue being the New Zealand delivery only. For the month of January 37,264 tons of butter went into London. Of this total 261 tons were from Russia, 1648 tons' from Finland and Sweden, 8,664 tons from Denmark, 1,287 tons from Argentine, 12,049 tons from Australia and 12,665 tons from New Zealand. It will he seen the oversea.# Dominions have foreign rivals which are capable of producing large quantities of butter for export. The British farmer is now, also, a considerable .producer of butter and dairy produce generally and this large weekly arrival of butter must depress prices also, for the Home producer. It does not appear likely that there can he any quick recovery of prices in the United Kingdom. That is the main market for this Dominion’s butter, the supplies going elsewhere being very restricted. To improve the returns to the ,producer it is now more than ever necessary that production costs should be minimised. In times past centralisation has been argued as .a means to give the producer an improved return. The advisability of combining to save costs ,is now more apparent than ever. In the North Isancl there lias been a movement in the direction indicated and no doubt the- suppliers have derived an extra benefit. The possibilities -'or centralisation in Westland are very present, and the change could lie brought about with very little extra cost. The current season will try the resources of the existing factories to satisfy the suppliers, -ami looking to the dr-00 in prices, and the pay out already for butter fat in various part? of the Dominion, the fall might- still go- lower. The difficulty is going to he it-o dispose d f the factory product. There 'is an evident glut at Home, and with foreign supplies that condition will recur each season. New Zealand ha? been increasing its volume of production each year and is capable of larger yields stiff. As these goods go on the market the difficulty of sale at a satisfactory price will increase. It would he suljeiidnl for -factories to adapt cu-t throat prices in the endeavour to sell their produce. Were there a- combination of producers that could not come to pass, but until the producers are organised, there, is always that difficulty fear, and the effect would be disastrous all round. The present seems to be a time for overdue action in regard to centralisation, and by that means in the saving of publicated overhead costs -and improved marketing facilities, there would he a Larger surplus for distribution to the -suppliers. It is for the farmer to set the local dairy industry in order if it is desired to obtain- the best returns for his labour.