BUTTER AND CHEESE

Rotorua Morning Post, Volume 2, Issue 299, 12 August 1932, Page 4

BUTTER AND CHEESE

Wool, meat, butter, and cheese are the chief New Zealand exports. Since the Empire already grows more wool than it can consume, wool does not enter into the deliberations at Ottawa. It is upon meat and dairy produce, therefore, that New Zealand producers place their main hopes of tariff protection on the British market. In neither field has agreement been reached, but recent news sets out the agreed Dominion "demands" as to dairy produce. Last year we exported £10,649,527 worth of butter, and £4,461,293 worth of cheese. We supplied just on half Great Britain's imports of Empire butter, or nearly one-quar-ter of her total imports of butter, for the market was almost equally devided between Empire and foreign suppliers. Our only serious Empire competitor in butter is Australia, which last year sent Great Britain 77,000 tons against our 96,000. Our only serious foreign competitor is Denmark, which sent 123,000 tons. But whereas Australian butter commanded an average wholesale price in London of 110/6 per cwt., and New Zealand an average of 114/3, the Danish average was 130/-. People are willing to pay more for Danish butter, almost as much more as the twopence-a-pound duty now proposed. In other words, the Danish butter producer will be able to carry the duty and still get as good a nett return as the New Zealand producer. It is by no means certain, therefore, that imposition of a duty would lift our prices to anything like the extent which at first appears. In cheese our quantitative position is stronger. Great Britain's total imports of cheese last year wefe 144,000 tons. Of that we supplied 86,000 tons — considerably

more than half. Canada sent 35,000 tons — less than half our share — and all foreign countries lumped, only 18,000 tons. In price we always run third. Our average on the London wholesale market last year was 59/1 per cwt for white cheese and 60/3 for coloured ; Canada averaged 71/- and 71/4, being just headed by the best Dutch cheese. A duty, as proposed, of twopence a pound on foreign cheese would play into Canada's hands before ours. These figures emphasise the danger of pinning our f aith too fast to Ottawa. Its.results will not work miracles. Alone, they will not restore prosperity to this or any other country. , They will do something to help > but in the end only economical production, stern insistence upon quality, and skilfully organised marketing will build. for New Zealand her next era of export prosperity.