DAIRYING AND THE HOME MARKET.

Taranaki Daily News, 16 September 1915, Page 2

DAIRYING AND THE HOME MARKET.

INTERVIEW WITH THE HIGH COMMISSIONER. ('From Our Own Correspondent). London, August 7.

The Hon. T. Mackenzie, when asked his opinion on dairy matters, said:—

Like other branches of the provision trade, dairy produce lias been greatly affected by war conditions. The butter market of the past season ruled fairly steady, high prices being fairly constants Siberia had great difficulty in getting her shipnients through, gome of which came to hand via Vladivostok, the remainder coming via Archangel, and a certain proportion thrpugh Sweden, but owing to Baltic porta being closed this route was not available. Danish and Dutch butters and cream have been going into Germany freely, which caused the market to be rather bare in this country. French butters were in plentiful supply on English markets. The most notable feature, perhaps, in the dairy produce section of the trade has been that of the cficese market. This market has 'been greatly affected, and connected therewith there have been some remarkable features. During last winter the War Office drew very largely on New Zealand cheese supplies for rations for the troops; in fact, at one period of the season it is safe to say that fully two-thirds of the New Zealand supply of cheese was diverted from the regular and legitimate channels for the purpose aforementioned. At the commencement of this period prices rose to such unheard-of levels as to create a record. This was caused chiefly, perhaps, by the lack of visible supply on the market, which was not equal to the demand. As the prices rose, however, it had the effect of checking the usual consumptive demand of the trade. At the same time this condition of things during the period in which the War Office was using New Zealand cheese, placed some of the leading provision merchants in what might be termed rather an awkward position, because the War Office, by anticipating requirements at a fixed limit, was paying a somewhat lower price during a certain portion of the time than the prices were quoted to the trade when the produce tended. The effect of this is that those merchants whose supplies diverted such a high price to the producer as some of the other firms who held on to their supplies and which were directed into the usual trade channels. This meant that the latter were returning probably several shillings a cwt. higher prices to their clients than the former.

With regard to the prospects of next season, it would appear from the butter position to-day that New Zealand creamery butters will meet with a good demand In the early part of the winter and command high prices. I have at hand reliable information to the effect that there are good grounds for believing that before long almost the entire Danish output of butter will be diverted to Germany. This, of course, is problematical, but it is worthy of note, aa the Danish supplies are a ruling feature in all markets that demand a butter of a high standard. Then, again, in the Danish Butter Trade Journal of the second of last month, we have information to the effect that the hay crop in Denmark has been a failure, and the whoje harvest must certainly bo below average. This will no doubt have some effect on the production of butter in Denmark during the coming winter. The prospect is that while finest butters will rule Wgh, especially during the autumn and early winter, secondary grades will be plentiful 1 owing to large supplies of Siberian—a small portion only of which will be finest owing to the absence of cold air space and delay in transit. It is therefore expected that the total quantity to come from Siberia will be much larger than last year, because none can go to Germany.

With regard to the cheese position, it is very difficult indeed to gauge with any certainty what may eventuate In the near future. During the last two weeks and at the present time the cheese market has been very unsettled. (Prices have been falling very rapidly and very considerably. This is due to the large supplies that are coming to hand, not only from Canada, but from the United States; in fact, probably it ia the United States factor that is disturbing the market so greatly. This is on account of the great quantity of cheese that was imported into this country froni the United States, not only last winter but also at the present time, and ft appears as if this supply was going to continue, and which it is almost certain to do so long as prices on this side rule sufficiently high to encourage American merchants to export cheese to this country. The amount of cheese that has been imported into this country from America during the past few months has been quite a revelation to all those engaged in the provision trade in this country, and another factor which seems to indicate that the Americans intend to make a bid for this market is the fact that some of the factories there are giving their attention to the manufacture of the 80 to 851b cheddar-shaped cheese—up to the present they have been making a much smaller cheese than that which I have here mentioned. The United States article has been a drag on the cheese market for some time. Certainly there was room for the supply during the past winter months, and the cheap American cheese was able to supply certain markets. At the tame time, it iiad the effect of diverting buyers' attention from the New Zealand article to the American for the reason aforementioned,

1 U'he prospects for next season depend a good deal upon the amount of cheese that will be withdrawn from the usual trade channels for the supply of the troops, and at the present time there is no 'definite indication of what the British Government intend to do in this direction. It certainly is a fact that since the war broke out the consumption of cheese in this country has increased considerably, due chiefly to the fact that the Government have recognised the high nutritive value of cheese, and on that account included it very freely in the rations for the troops. ' It meant, however, that thousands of men were eating cheese regularly who in their civil life would very probably not eat as nuu'h in a week- as they would in one day while they were on service.

The outlook, for dairy produce at the present time h a most difficult one to di'ui with, and w<> have information hero that several of the co-operative, dairy companies in Xew Zealand anticipate changing over from butter to eheeae, ready for the coming season. It would be well, however, for those dairy companies to retain their butter plant intact 60 that in the event of cheese prices reaching lower levels and butter prices ruling- as high as they wore during this present season, they would then be in a position to continue the manufacture of butter, or vice versa, as the eas-j may be. Owing to the present disturbed conditions of trade, any abrupt change from the usual course of business is dangerous to those interested, '•