WAR AND BUTTER.

Pukekohe & Waiuku Times, Volume 3, Issue 227, 4 September 1914, Page 3

WAR AND BUTTER.

Increased Exports Forecast

Regular Shipping Facilities.

There are rea'ens for believing that, thanks to predominance of the British Navy and tfe consequent 'liminution of war rit-ks, no dlßlocati n of the New Zealand dairy export trade will be create! by the war, and that, on the contrary, the industry wi'l continue to create new

records in export figures. Mr 11. E. Pacty, the general mancger of the New Zealand Dairy Associ tion, in tie «u seofco:verFation with a moiter explained that in th: ea'ly days of the war crisi3 transport and financial arrangemtnts were in a state cf ehsos, but an encouraging feature at that time was the high prices ruling for butter in Lordor. It was thought that if delivery to London could be effected remunerative prices would result. In the interval however, London prices have been reduced, but shipping and financing arrangements have greatly improved. The liemuera is expected to be the first steamer to take dairy produce from New Zealand to London, and she will be quickly followed by other boat?. The present expectation is that regular facilities will be available.

Dairy produce from New Zealand i to London is carried under contract, j which is liable ti suspension in the ! event of maritime warfare involving ; Great Britain, and under the terms j of the contract a suspension has been j proposed. Mr Paeey states, how- | ever, that at the present time it is not clear what influence this will have upon the shipping arrangements. The point is beirg negotiated, and it is believed that a satisfactory position will te reached. Ihe ordinary marine insurance rates have advanced somewhat, and, in addition, there is the further special loading of the war risk, which at one time was quoted as high a 9 20 per cent. It is now believed that the war risk will be covered by three per cent or l-ss. The exchange rate 3 are quoted somewhat higher than obtains under normal conditions. The difference, however, is not considerable, and ai ordinary exchange facilities, including letters of cie.iit, are now available, this part of the business does not offer serious embarrassment.

A CONSERVATIVE POLICY. There is reason to expect that the ultimate payment t> producers of butter-fat will this year average out at least as good as usual. In view of the uncertainty and difficulties, however, the com.anies are adopting a more conservative policy than usual, and the dairy companies in Australia recently met and decided that a conrervative policy ol safe advance and payments, should be pursued in co-operative factories throughout the Slate. The National Dairy Association of New Zealard, which is representative of most of the dairy companies of New Zealand, has given similar advice, and with one or two unimportant exceptions the companies in the Auckland province are shaping their course accordingly. With a view to making the advances as high as possible, most of the dairy companies are deferring the fixing ot rates until immediately before each monthly payment is made. "Meanwhile," concluded Mr Pacey, "it is encouraging to note that the butter season is opening up satisfactorily. Speaking for my own company, the quantities coming to hand are considerably in advance of any earlier season, and I believe that the New Zealand export business for the coming season will be higher than ever before."