DAIRY PRODUCE TRADE.

Taranaki Daily News, 25 October 1917, Page 7

DAIRY PRODUCE TRADE.

WEDDEL &, CO.'S EEVIEW. In their review of the imported dairy produce trade for the year ended June 30, Messrs Weddel and Co., Ltd., point out that the British Government having in the national interests withheld from publication the imports of butter "and cheese into the United Kingdom after March 31 last, it is impossible to make satisfactory comparisons with the figures for the previous year ending June 30. The Review shows'the imports for only the nine months ended March 31, 191?, and for purposes of comparison the corresponding figures for the nine months ended March 31, 191(5. The report reads: The dairy produce trade in the year ended June 30 has suffered more disappointments in the obtaining of supplies and in the arranging of "deliveries to customers than ever before. There has been difficulty in forecasting market movements, and a general artificiality in all the conditions of trading, such as no living man can remember.

In November, 1&1(5, after a considerable proportion of the season's output had been sold by the factories to British traders, the Imperial Government arranged with the Government of New Zealand, practically on a commandeering basis, to purchase at 9%d per lb f.o.b. all cheese made in New Zealand for export in 1910-17; and in December the British Government took pver all cheese arriving from New Zealand and Australia, on the assumption that the arrangement made in these countries covered shipments afloat as well as unshipped outputs. On April 17, 1917, the British Government took possession on arrival of over 180000 boxes of Australian butter and CBOO boxes from South Africa.

The appointment on December 26, 1916, of a Food Controller with power to fix maximum prices of various kinds of food, such as bacon, butter, cheese, etc., marked another stage in the disorganisation of the trade. The scheme of maximum prices fixed for New Zealand and Australian cheese did not work out satisfactorily owing to Canadian and American varieties being uncontrolled, although they formed about 70 per cent of the total supply. An order was therefore issued commandeering all Canadian and United States cheese arriving in the United Kingdom after May 29, 1917. The Government, not wishing to disturb unduly the existing methods of distribution, appointed the importers to act as their agents, allowing them a commission of 2% per cent. Wholesalers were allowed to take a profit of 5 per cent and retailers 2d per lb. The Board of Trade ceased publishing import figures after March 31, and the more recent statistics of the trade are therefore incomplete, being restricted in most cases to a comparison between tt'.e nine months of July, 191(1. to March, 1917, inclusive, with the nine months July, 1915, to March, 1910, inclusive. ,On that basis the imports of hutter during the past season, as compared with those of the previous season, show a deficiency of 37,079 tons, equal to 29.8 per cent., and there is every reason to believe that if the figures were available for the complete year the deficiency would bo found to be 40,000 tons, tir 49 per cent. Since 1914 the total annual imports from all sources have fallen from 200,000 tons to their present total of about 100000 tons.

The imports of cheese, on the other hand, show an increase of 11,005 tons, nr 11.7 per cent., for the nine months, and if the figures for the complete year were available it is probable that the rate of increase would be found to have been maintained. As compared with prewar imports those for the past IS months show practically no change, being about 120,000 tons. The marked contrast thus revealed between the import statistics of butter and those of cheese since the outbreak of war, is accounted for by the fact that so much butter is normally received from foreign sources, which have proved more or less unreliable, while the great bulk of the cheese imported comes from the more dependable British Dominions.

How best to secure an increase in the production of butter and cheese within , the United Kingdom such as would make . us independent of foreign suplies, especially in the case of butter, calls for the immediate attention of Parliament, as even with the greatest encouragement it will'require some years to attain this objecti The urgency of the position is revealed by the fact that our population during the twenty years—l3ol-1911—in-creased by 19 per cent., while in the same interval our milking herds have increased by only 7 per cent. The encouragement now offered to farmers to increase their grain production will naturally tend to accentuate the shortage of milk, butter, and cheese; the guaranteeing of full prices for grain must almost inevitably tend to raise the values of feeding crops and pasturage, and is likely to lead farmers to devote less rather than more attention to live stock. Unless, therefore, methods can be devised to counteract this tendency, the position is likely to become worse instead of better in the near future, so far as the Home supply of all kinds of dairy produce is concerned. BUTTER. Although there was again a fallingoff in imports from all sources amounting to 37,079 tons in nine months, there was actually an increase of 11,014 tons from British sources. The reduction of 51,723 tons in foreign imports is represented by 41.639 tons from Russia, 3803 tons from Denmark, 2524 tons from Sweden, 909 tons from Norwaj, 0556 tons from France, and 1280 tons from Argentine, set off to some extent by increases of 1798 tons from Holland and 5586 tons from "other countries." It was, of course, impossible for Russia to ship to this country, but that was not the position of Denmark, Holland, Norway, and Sweden; nevertheless, the receipts from these countries have fallen from 100.341 tons in aggregate in 1913 to about 40 per cent, of that quantity, i.e., on the basis of 36,836 tons for the nine months ended June 30, 1917. Norway and Sweden, as well as Russia, have dropped out of the trade altogether. Prices rose gradually from the beginning of July, 1910. until the middle of December, with only an occasional lull; but a decline set in then which continued until the end of January. Later on, when the weather conditions were most unfavourable for production, and the submarine menace seemed to threaten a suspension of Danish shipments, prices went up to the extent of 18s to 20s per ewt. within a week, Danish and New Zealand descriptions touching 2305.. Australian 2205., Argentine 21 Is., and South African 2125., the highest figures ever recorded. From February 2 for six weeks onward there were no arrivals of Danish butter on our markets and prices were normal; then shipments were resumed and there followed a period of . fairlv steady markets up to the last

week hi May, when a' rapid "falT in prices' took, place., succn<>aed ■liy..:£ me; awing the last two weeks of June. New Zealand butter more than maintained its high character, and, .when Danish was oil' the market, many retailers who for years had handled only Danish became buyers of New Zealand brands, and were so satisfied with the quality that Danish importers must expect to meet more severe competition in the future from the best brands shipped from the Dominion.

Except during an interval of three weeks—two weeks in November and one in December—New Zealand butter has been oil'ered on the London market throughout the whole year under review, a position which has naturally tended to aid in the maintenance of its popularity

There is a general impression that Australian butter was not generally so good as in some previous years. There was more "flshiness" and,, not a little staleness, which may have resulted from the delays which took place before shipment. Many brands which had been graded as firsts in Queensland, New South Wales, and Victoria had to be re. legated to lower grades on their arrival here. Fortunately the complaints made by buyers were not very loud, as the re. suit probably of the high prices ruling. In the interests of Australian producers, however, it is to be hoped that shipping delays in the coming season will bo much less marked than they have been recently. Three practically new sources of butter supply to this country have been opened up during the past'l2 monthsSouth Africa, British India, and California; none of these is as yet of any great importance in comparison with, the total consumption. The first-iiamed country sent 731 tons during the nine months ended March 31, 1817', and 1114 tons during the three following months, but these latter are not shown in the Board of Trade returns. The total from that source was, therefore, 1845 tons during the 12 months ending June 3Q, 1017. Its value compared very favourably with those of butter from Australia, New Zealand, and Argentina, and when it is remembered that South African butter-makers have had no practical experience to guide them in meeting the varied requirements of this market as regards flavour, colour, saltness, and method of packing, it must be recognised that their butter may ultimately and probably soon become a very effective competitor against the older established favourites in this market. British Indian shipped experimentally to the United Kingdom 112 tons during the same period, and California scut 600 tons. MARGARINE. The high prices of butter during the past three years have driven large numbers of consumers to look for substitutes. They have had practical? no choice but margarine, which is always ready to band, and makes the nearest approach to good butter, both in colour and flavour. 'The total imports for the nine months* from July 1, 1010, to March 31, 1917, •were about 110.000 tons, an increase of 20,000 tons, as compared with the corresponding months a year earlier. But the margarine consumed in this country is not all imported; a large quantity is made in the United Kingdom. Unfortunately, (here are no reliable statistics as to th« exact quantity manufactured here, but it is estimated, an good authority, that for the twelve months ended June 30, 1017, this amounted to approximately 130 000 to 150,000 tons, which, with the 110.000 imported in the 9 months, pins 35,000 tons (the proportion estimated as the imports for April. May, and June, in 1017), bring the total yearly consumption of'margarine in this country to about 280,000 tona. CHEESE. The imports of foreign cheese for the nine months ending March 31. 1017, were practically equal to those of the corresponding period in 1010, the only difference being a decrease of 319 tons in 1017. From British overseas sources, which were virtually confined to Canada and New Zealand, 1,0R4 tons in excess of the same period in 1910, were received, but while the Canadian supplies show an in-, crease- of 17,625 tons, those from New Zealand were reduced by 5045 tons. The total from both these Dominions amounted to 03,098 tons in the nine months, the largest import of cheese in recent years while foreign sources aggregated only 17,047 tons. The smallest import in reCent, years of twelve months occurred in 1912, when it dropped to only 110,838 tons, and the largest was. in 191?., when 131,320 tons were imported. It is.es, timated that for the. twelve months ended June 30 the total imports probably amounted to about" 130,000 tons. Tlie difference this year between the average price of Canadian and New Zealand cheese calls for some comment, because in previous years the difference has been only about 2s per cwt. The explanation is that from October to the end of May, 1917, while the market was at its highest, no New Zealand cheese was available for sale, the entire imports having been commandeered by the Government, while, on the other hand. Canadian was selling freely up to 176s per cwt. In consequence, the average price for tlie latter description has reached the extraordinary figure of 1315.. aft against 101s 9d for New Zealand, which, has been confined to quotations from July to October, 1910, only, during which period the average price of Canadian was 102s per cwt. On May 29 both descriptions wore in the hands of the Government. The difference in the average of.these two descriptions for this year, explained above is sufficient to affect the average for the past five years to the extent of about 19s per cwt The Imperial Government having secured New Zealand cheese at the opening of tlie season for the Army, the usual importers have had few opportunities of testing its quality, but the general impression is that there was no falling : off as compared with the preceding' year. i The Canadian variety has fully main- • tained its h'igh character for excellence.