BUTTER AND CHEESE.

Taranaki Daily News, 10 June 1920, Page 9

BUTTER AND CHEESE.

THK UOAIE MAKKKTvS. ".New Zealand producers will, have u VL-ry good market for butter, with high prices, during the next- year or two,'' said Air. 11. Ellison, London representittive of the National Dairy Association, when interviewed by n representative of the Lylielton Times. Discussing the. position in Great llr lain, Air. Ellison said that the Alinistry of J'ood had announecd its intention of continuing the control of butter, the present price of which was 3s a pound. There had been talk of reducing the price to is Sd, but that would not all'ect the New Zealand producer to any great extent. The demand at Uonic was still far greater than the supply, and rationing remained in force, the weekly allowance being lioz per head. During the war the quantity of butter imported had been 70,000 tons per .annum. Prior to title war the amount was '210,000 tons, The losh of Siberian supplies and a partial cut of Danish supplies were two of the factors responsible for the big drop in supplies. "It looks," continued Air. Ellison, "as if the policy of the British Alinistry favors short-dated purchases. The authorities have been buying from Holland and from Denmark quantities of butter and cheese on two-month contracts, or under the system of a stipulated total consignment. At present the New Zealand Government is under contract to supply butter and cheese to the Imperial authorities until the end of August. Cheese, however, is already decontrolled, so we can rely on a free market for that product. The contract gives the New Zealand producer lOiJd

. pound f.o.b , so the Food Alinistry, by idling at a retail price ot> Is Sd, lias icen doing fairly well. In Britain there s a KVsteni of subsidy for milk for town apply and for cheese, the wholesale iriees" being 3s 3d a gallon for milk and !s 2d a p«und for cheese. The latter iriee is far in excess of that paid for

cheese purchased from Canada and Xew Zealand, but the British Government is encouraging the cheese grower, calling his produce a imeetisity. Butter is regarded as a luxury, and the margarine industry has been iirmlv established. Margarine will always keep a check on butter prices. People may pay 3s a pound for portion of their requirements in butter, but for the rest they will go to margarine. At tiie same time the British consumer is getting very tired of margarine, and is anxious (.« secure butter. "What will happen in New Zealand when the embargo is lifted; It is not easy to gauge the position. It is possible that the New Zealand producer will get from 2s Jo 2s 3d a pound f.ob. for his butter, and t should say something approaching Is a pound f.o.b. for cheese. It in hard to say anything- about the retail prices in New Zealand, because the Government may continue to lix the price- Taking it on a parity with export values, the retail price of butter is likely to show a slight increase. Cheese should not vary very much."