BUTTER MARKETING

Rotorua Morning Post, Volume 1, Issue 93, 10 December 1931, Page 4

BUTTER MARKETING

Any action taken by New Zealand's competitors in the British dairy produce market with a view to strengthening their own position is necessarily of interest to the whole Dominion Butter and cheese are now by far the most valuabie of the country's exports and as their production continues to increase year j by year every move made by other producing countries, Empire I or foreign, must be closely watched in self-def ence. Among Empire producers, the Australians are for several reasons this country's principal rivals in the British butter market. , Their season is approximately the same as ours ; their exportable surplus has for a number of years shown a progressive, increase, and last but not least, their product has, during the past six or seven years, steadily approached ours in type and quality, Iargely as a result of lessons learned from our farmers, factories and gradiug system. Even.the great handicap from which tbe Australians have suffered in the past — severe fluctuations in the exportable surplus.due to climatic conditions, which often have amounted to nearly 20,000 tons in a season, and from wbicH the New Zealand dairy farmer is fortunately almost entirely f ree — rhas Iargely been overcome in recent years by farming methods scientifically adapted to the climate. The progress made. by Australi.a is graphically lllustrated by the fact that whereas up until about 1924-1925 the difference in price.on the Londpri market of Australian and New Zealand butters of. , similar gracle was, .apprpximately ten shilling per hundredweight, it is iiow seldom more than two shillings per hundredweight and not always that. The latest move of the Australian producers still furthqp to strengthen their position in Great Britain will theref,ore be watched with keen interest in this, country. A cablegram ■from Sydney published yesterday announced the formation by cooperative and proprietary interests jointly, of a company to market and advertise Australian butter abroad. In view .of the fact that a great body of co-operative producers are already lipked with the New Zealand producers in an organisation wbose objects are, similar j namely Empire Dairies, it is- not.possible op the meagre information contained in the cable to judge the strength of the new company, especially among the co-operative producers,, In Australia, owing to a variety of factors which. do not apply. on this side. of .the Tasman, the proprietary interests are relatively much stronger than they are here and rivalry between them. and the co-operative factories is exeeedingly keen. It is possible, therefore-, that the new. company is^mpre or less a counter-blast to Empire Dairies, launched by tbe proprietory interests With the support of a comparatively^ small; section of the co-operators^ . If this is, so, its usefulness will be.limited,.but it, by. no mean&.follows that it will be negligible. In the cabled announcement referred to there are two most significant statements. The first of these is the reference to .blending and. the second is the expressed intention to cultivate the, very valuabie carton trade. The activities of the blenders have.for.some years b^en.recogmsed^as tbe principal bai- to the deyelopment-in Great Britain of a strong copsumer demand for New .Zealand , ^hd Ausj;ralian butters under their own brands. A iarge part of tbe lmports from both.countri.es is taken by these people and,bjended with; inferior foreign .butters and is then retailed under tbe blenders' or retailers' own brands withouf. any indicatfon , pf , fts prigin. This is, of course, a considerable help to tbe interior butters, but it constitutes a very grave handicap to the. New Zealand and Australian products and is, in effect, a.serious ipr Justice to the producers of both countries, who receive less for their butter in or'der that the foreigner and the blender may each receive more. Repeated efforts have been made by the New Zealand producrs' representatives to overcome the trouble, but so far without "any very marked success, the opposition having proved too strong. Legislation was obtained.,witb- tbe.object of ensurjng that ,all; butter, retailed at Home should be clearly marked, sbbwing its country of origin ,and whether it was; a blend, but its opeYation has been posfppned. The mpasurses. faken b7 ihe Australian organisation and the results achieved, will, therefore, be keenly watched on both ^ides of the Tasman. Success in ; fhis diyeQtion wouldj.ippi*^ than cppipensate for any challenge .it I may , offer to ,N,ew . ^ealapd's present supremacy among Empireproducers in the carton trade. . , 1 .