BUTTER AND CHEESE.

Taranaki Daily News, 27 September 1917, Page 7

BUTTER AND CHEESE.

{REVIEW OF LAST SEASON'. tfEXT SEASON'S PROSPECTS. A review of the Australasian dairy season, dated Jnlv 25. has been issued from the London office, of the New Zealand Loan and Mercantile Agency Co., Ltd. It runs:— General Remarks.—Owing to abnormal conditions arising from the war, the course 'of the market both for butter and cheese during the period under review was extremely erratic, whilst all previous records as regards values were exceeded. Supplies generally were much more irregular than usual, shipments from Australasia being seriously delayed owing to shortage of tonnage, while the loss at ?ea of numerous cargoes and the action of the Government in requisitioning and subsequently controlling disposal were factors which from time to time caused violent fluctuations in prices. The discharge by Admiralty ordeis of steamers originally destined for London at various outside ports, moreover, caused delay, and trouble in the disposal of consignments, whilst railway facilities consequent upon the enormous demands made by the naval and military authorities upon rolling stock bejjjg much curtailed, operated in like direttion. The shortage In butter supplies induced a large demand for margarine, which acted as an incentive to Home manufacturers to increase the output and to improve the quality. Supplies from the Continent being much curtailed and large quantities being taken by the Government, prices were forced up to a high level, whilst the quantities available for civilian requirements have oi late been much reduced.

Butter.—The season just terminated ..) noteworthy for the high prices obtained 'in this market for all descriptions. Xotj withstanding that thcro -vere no arrivals from Russia and Siberia, and that supplies from France and Denmark were much reduced,, the market kept soaring up until at the end of February 226 a was reached for New Zealand choicest and 218s per cwt. for Australian This state of affairs was mainly brought about by the difficulties experienced in connection with transport and labor, steamers being callSd upon by order of the Admiralty to take (in most cases) » circuitous route to port of destination, whilst shortage of labor, owing to Uie continued drain Upon man-power ■" >r Anny purposes, seriously interfered with the discharge of vessels on arrival and delivery to warehouse, In consequence steamers being called upon by order of received until several weeks after arrival of" carrying steamer, and owing to the depletion of available stocks prices were rapidly forced up. Subsequently some eight Australasian steamers were in dock together, and when their cargoes began to come on the market prices took a downward turn. On April 17, however, the Ministry of Food stepped in and commandeered the cargoes of four steamers, which materially steadied the position, the removal of pome 180,<>00 boxes from the market having a stimulating effect upon the demand. Early in March the Food Controller took action by imposing maximum pri"".s for all descriptions—New Zealand being fixed at '22te and Australian at 2 8s per cwt.—subject to revision from time to time. The maximum prices were subsequently as the season advanced, reduced, and the policy of the Food Controller being to keep down values of all food commodities as much :\k possible, any material advance upon the present rates is hardly to be looked for. There was a very marked increase in the shipments from the Commonwealth, particularly from Queensland —the quantities received from that State breaking all previous records. On the other hand, from New Zealand shipments were upon a reduced scale, which is mainiy attributable to the curtailed shipping facilities. The experience of the past season has once more demonstrated that the results obtained by colonial factories, which shipped on consignment, were much more favorable, than in the case of those who were induced to sell their outputs on the spot to speculators. Owing no doubt to the Australian Government's action in retaining the choicest or "fancy" butter for their own consumptive requirements, supplies of this .grade received here showed a marked falling off. While the inquiry was largely for this description, other first grades sold well at good prices, but there was a preponderance of inferior qualities, the disposal of which at times proved difficult. The unsatisfactory condition of much of the received was occasioned by its undue detention at port of shipment. Tho butter received from New Zealand we are glad to say, was of excellent quality, and considering the lengthened voyage of some of the carrying steamers, arrived in good condition.

Cheese.—The market opened well at high prices (94s per cwt. for first-grade New Zealand), and steadily advanced week by week until 114s per cwt. was reached. On arrival of the s.s,. Turakina on December 27, the whole of the consign ments on board were commandeered by the British Government, and all subsequent arrivals were dealt with ui like manner. Negotiations also were opened in the Dominion for factories' outputs, a satisfactory agreement subsequently being arrived at. Small shipments of Australian cheese had bun coming forward/ but the shipments per s.s. Cumberland, which arrived on January I'2, and all 'subsequent consignments were commandeered. We regret to report that the quality of New Zealand cheese was not generally fully maintained, this doubtless being due to >he unusually long time occupied in transit from factory to Home ports, which caused much of it to be heated and out of condition when reeived. Owing, however, to tho shortage of general supplies, buyers were less critical than in ordinary times, and in consequ jet- bptter allies were obtained than would have been the case.in normal market conditions.

Prospects for next season.—Having regard to the extent of Government control already exercised in the case both of butter and cheese, and to the nossibility of further steps being taken in the same direction, no useful opinion can be formed as to the course of the market during the coming season, but at the moment, with available supplies of Australasian butter on the spot and near-at hand in small compass, any depreciation in values in the near future, unless brought about oy Government intervention, appears unlikely.