BUTTER AND CHEESE.

Taranaki Daily News, 8 May 1920, Page 3

BUTTER AND CHEESE.

DAIRY PRODUCE OUTLOOK. ON A FREE MARKET. Prospers for the 1920-21 dairy produce season are for free markets. This what the butter-makers of the Dominion have firmly insisted upon. A few "ays ago inquires were made by the Imperial Government through the Dominion government as to what were the needs of the New Zealand butter-makers on the disposal of the exportable surplus. Fr;« markets were again insisted upon. At the same time it was recognised that prodic;eis here could not influence prices at Home, should the Brit ish Government decide to control the price of all imported butter on arrival.

T-he attitude of the New Zealand producer is to be seen in his standing out tothe same treatment as to the price of his produce as is accorded to other producers, British aud foreign, all other things being equal. The use of butter bought in Australia and Now Zealand to even up the extreme prices paid to foreigners and British and Irish butter-mak-ers was warmly resented in view of the nigh quality of the New Zealand article. Further, while there was a control retail price of 2e 8d per pound, and later 3s, put upon Government-bought butter in England, English, Irish, and Welsh but-ter-makers were allowed a free market. In certain districts where wages were very high, especially in the colliery districts, 5s per pound was obtained by British and Welsh farmers, the price being paid without demur.

New Zealand butter was included in "Government" butter. This was allot ted on the scale of loz per person per wee?:. Except in those industrial districts where wages were high, the poor people cou'd not afford to buy evpn the one ounce per week. They had recourse to margarine, the manufacture and consumption of which in Great Britain have received an enormous impetus since the butter scarcity.

Denmark, oven before the war, had the dual distinction of commanding the highest export price for its butter and the leading consumption per head of margarine of any other country. Danish supplies went mainly to England before the war, but since, and to-dav, they have been eagerly competed for'by Germany and Austria, and to obtain them Great Britain has had to pay extreme pric?-;. Supplies of Danish have even been furnished to the United States in order to take advantage of the high premium on American funds. The exchange position has made butter business between Great. Britain and the United States hhd' Canada almost impossible. The cheesemakors are in a somewhat, different position. Tliey are receiving per pound in New Zoniniid—n good prie.* —and, latterly, about on a parity whh that received bv Canadians. It is liow reported by private cables that the British Government has definitely terminated the control prices of cheese as from May 1, and a further private caible adds that'the price of butter has also been decontrolled. No doubt there will lie seen a momentary sluirp advance in the prices of both butter and cheese in England. TinNew Zealand contract with the Imperial Government terminates on July 31 next. After that, presumably, both butter and cheesemakers will be 'free to dispose of their prodluce where and how they will. i'.fl oi ts will no doubt be concentrate,! in New Zealand on butter manufacture in preference to cheese. In fact, those factories that have dual plants and can make either butter or cheese at will, are preparing for the production of butter. Butter factories pure and simple are expected to be in readiness for turning out the utmost ounce, so promising does the future of the butter market appear. An advance in the price of butter for eonsumption in New Zealand appears to be inevitable if the value of the commodity lor export exceeds (as it promises to do) the current price for the local market, viz., Is Bd per pound for first, grade. _ One great advantage that producers enjoyed under the contracts with the British Government was that of stabilty of finance. They knew that for all the butter and cheese turned out tliev would receive schedule prices-very good prices as compared with pre-war rates; but discounted, of course, to some extent by increased cost of production. They will make financial arrangements well forward, well knowing that thev would receive definite returns for their produce according to its grade, as soon as it was put into store. There were no risks of fluctuating markets.

Shipbuilding, marine insurance, commissions, distribution, were matters that did not disturb the producers. There )7 8 1- ne cu,tomw - o»e market, and the habihly for storage was accepted by the British Government, beyond an average of two months, based over all consignments throughout the season. nI,V i ® ntish Government does not purchase butter and cheese this coining senson, the producers are free, to market hem where, when, and how they will. In that event there will be a lot to do between now and September next to arrange for shipment, insurance, storage, and distribution, and llnanee. The contracts had some advantages for the pro(ucers, even though the price was fixed, iw (m the case of butter especially) lower than the world-market piepared to pay for the goods.