Production Well Ahead

Sun (Auckland), Volume III, Issue 622, 26 March 1929, Page 10

Production Well Ahead

Season Will Mean £2,000,000 More

!F the increased production in dairy produce recorded in the past seven months is maintained to the end of the season. New Zealand will benefit by £1,500,000 to £2,000,000 over the yield of last dairying season. These figures are the estimate of Mr. "W. A. lorns, chairman of the New Zealand Dairy Board, who emphasises the importance to this country of the Canadian market.

JN his review to the board, the chairman reveals that grading figures for the month of February were: 1929. 1925. Tons. Tons. Butter 8,698 6.951 Cheese 10,215 5.942 “While these figures are naturally considerably above the dry month of last year," he said, “they are also well ahead of any of the Februarys for the past four years. “The total figures for the seven months of the season are: Tons. Tons. Increase per cent. Butter .. .. 64,533 58,807 9.73 Cheese .. .. 62,930 55,524 11.53 “This is a total butter-fat increase of 10.83 per cent., which is a tribute not only to the productivity of our

country, but also to the efficiency of the farmers combined with the increased use of fertilisers. If this percentage of increase is maintained throughout the season it means an added inflow into New Zealand of between £1,500,000 and £1,750,000.

“lncreased production is naturally reflected in increased shipments. The direction of these is of importance, and for the seven months ended February 28 the position shows exports of butter to the United Kingdom to be practically the same as last season. Vancouver took an increased Quantity of 300 tons, while shipments to Halifax increased by 148 per cent., or „ 4.213 tons. Exports to U.S.A. and other countries are not very considerable, but show increases over last season. On the other hand Australia’s imports from us dwindled from 2,048 tons to nil, due, of course, to the prohibitive duty of 6d a lb. The strength of the butter position during thii current season has lain in the Canadian market, and it be hoped that the persistent agitation of the

Canadian dairy farmers will not result in the closing of this profitable market to us. “So far as cheese is concerned the United Kingdom is practically our sole market, and our exports there over the period show an increase of 12 per cent., or 5,210 tons. The small export to Australia has ceased, Canada has taken a little over 100 tons, while a limited quantity has gone to New York, which last season took nothing. “Shipments from our Southern Hemisphere competitors are of interest. “Australia, over the past seven months, has increased her butter exports by over 25 per cent., i.e., approximately 5,700 tons (largely in the earlier part of the period) and her small export of cheese from 1.700 to 2,700 tons. “Argentine, on the other hand, has dropped back to 11,500 tons, a decrease of 2,200 tons. REASONS FOR PRICE DROP “The matter of stocks is of considerable importance. Taking butter first, stocks in United Kingdom at March 1 showed 4,360 tons, a drop of 1,500 tons on last year. Taking together our stocks afloat and in New Zealand, an increase of slightly over 2,600 tons above last year is shown. “Turning to our other buyer— Canada —we find her stocks at March 1 were 3,643 tons as against 5,616 tons last year. The statistical position of butter, therefore, appears sound, and gives little clue to the recent sudden fall in price. The reason for that fall seems to be pretty fairly put by a leading London firm as under: Firstly, all operators have been receiving their early purchases, resulting in a lack in interest in the spot market. Secondly, the consumptive demand was seriously curtailed owing to the higher retail prices ruling. Thirdly, the industrial depression owing to the abnormally cold weather resulted in heavy margarine sales at cheaper prices, thus affecting the spot butter market. Fourthly, the serious sickness epidemic. It is to be hoped that with lower retail prices and the advent of better weather, the market may improve.

MORE CHEESE CONSUMED

“Stocks of cheese in the United Kingdom appear abnormally heavy at March 1, but regard must be had to stocks afloat as well, and also those in store at this end. It is encouraging, however, to compare the increased New Zealand stocks of 2,600 tons at March X with the increased gradings up to that point of 7,406 tons, which would indicate that 4,806 tons more of our cheese has gone into consumption up to March 1 than up to the same point last year. “Looking at the position as a whole, therefore, it Is fairly clear that the United Kingdom is being asked to absorb now and in the future a consid-

erably increased quantity of Cheddar cheese than during recent years. “It is consequently only reasonable to conclude that our average price for the 1928-29 season cannot be as high as for the 1927-28 season, and in considering prices now being realised or offered, factories should take into account the position as we have endeavoured to outline it.