The Daily News. FRIDAY JUNE 12, 1914. THE DAIRY TRADE.

Taranaki Daily News, Volume LVII, Issue 21, 12 June 1914, Page 4

The Daily News. FRIDAY JUNE 12, 1914. THE DAIRY TRADE.

There is nn unusually large quantity of butter in cool store at ports; of the Dominion at the present time. The stocks at New Plymouth, Patea and Lyttelton are smaller by G327 boxes than tboso held a year ago, but the quantity held at Auckland, Wellington, Wanganui and Dunedin is greater by 34,834 boxes than tho quantity in store on June 1„ 1913. The totals are: 1914, 89,895 boxes; 1913, 66,390. To these must be added further stocks held by companies in private stores. The accumulation of so large a surplus is attributed by some dairy produce manufacturers and merchants to the disorganisation of shipments caused by the strike, and to a depression, generally regarded as temporary, on the overseas market. The continuity of shipments was broken by the strike, and dealers and brokers, it is said, being unable to secure their usual stocks form New Zealand, supplied the deficiency with Australian and Siberian butter, neither of which' commands such prices as the New Zealand article, Acaocording to the opinion of some Auckland authorities, interviewed by the local Herald, "the injurious effects were not confined to loss in New Zealand and a diversion of trade in England. When the shipping services were released, the accumulated produce was sent forward, and no fewer than six shipments arrived in ten days. When making their marketing and financing arrangements, agents and merchants had not anticipatthe delivery of eight weeks' supply at one time, and the result was that the finance of some of the English companies was embarrassed, and the market for New Zealand butter completely collapsed." The principal factor responsible for the present accumulation of stocks has been a depression of the London market, and of the Canadian market in sympathy, which was most acute in February and March, and has been very slightly relieved since. Prices have been low and the demand for butter poor. As a consequence, merchants and factories, according to our Auckland contemporary, discontinued their export shipments much earlier .than in normal years, deciding to store the produce in the hope of securing more profitable returns in the local market or by shipping to Canada or South Africa. The present stock of butter. in New Zealand greatly ex-

eeeds the probable requirements for winter consumption and it is generally expected that a considerable surplus will be sent .to England before the new season's output reaches the market. One Auckland merchant declared that at least 40,000 boxes must be shipped to London within the next three months, and sold at a very small margin of profit. The demand from Canada tapered oft' in January and February, and as there 'has been littlo inquiry recently, merchants concur in the opinion that business with Canada is not likely to play an important part in the solution of the difficulty. But thcro is, in the "News'" opinion, another reason for the accumulation of stocks. It is the poorness of the quality of our butter. The fact cannot be disputed that instead of improving our butter—and cheese too—we are going back steadily. This is a very, bad thing indeed for the industry. For tip-top butter and cheese there, is always a good and ready market. If the quality were right, tho accumulation in our cool stores would not be so heavy as it is. The reason for the falling off in quality is not fir to seek. It is due to the carelessness on the pa't of suppliers and the readiness of dairy companies to accept supplies without consideration of quality. In the case of cheese, ono has to look further for causes of the ma-kod deterioration that unfortunately has taken place. There is the unsuitability of much of the pastures for cheese manufacture—our rich Taranaki lands are more suitable for butter than cheese production—tho indifferent knowledge poosessca by some of the factory managers regarding ciheese making, and transit and storage deficiencies. Tho dairy companies are, fortunately, realising the dangers arising from present conditions, and are endeavouring, with the assistance of the Agriculture Department, to devise means by which the reputation of our dairy produce may be rehabilitated. Recent conferences in the north and south have

agreed upon the necessity for grading supplies and respecting that which is not suitable for manufacture. This is an end of the business to which the companies must give their earnest and undivided attention. They can well afford to allow any other .schemes they may have in mind stand in abeyance until

they secure the making and export of a first-class article, which can never become a drug in the market and prove unremuneralive to suppliers. We notice

I ill tlie issue oE the Auckland Herald from I which wo liavo quoted tlie remarks of a I large butter manufacturer to the effect that tlie enormous production of margerine has permanently affected the Lon-

don market, so that thn prices realised two or tlire years ago will never again be commanded by New Zealand butter. This may be true of much of our inferior butter, but it is certainly not true of tbo high-class article, for wliicb there is always a remunerative market. It is not a fleeted, not can. it ever be, by margarine competition. We must cater for l.lie best trade by turning out the higliest nihility, as. we used to do, and as wo can do. If not, we might as well turn our attention to other lines, for in the race with margarine our second or third-class butter will stand no possible chance.