FARM AND DAIRY.

Taranaki Daily News, 5 January 1921, Page 8

FARM AND DAIRY.

THE CHEESE MARKET. The weakening of the Home cheese market comes at a singularly inopportune time (says the Weekly Press). Wool and general agricultural products are sufficiently low in value, without this very important section of our exports being similarly affected. The buoyancy of the dairy produce market was looked to as a set-off against the generally depressed outlook in other products. Cabled confirmation of the dull position, however, has just been received by one of the leading banks. “The p’fispects for cheese are very uncertain,” it is stated in the advice referred to. “Market is over-stocked, lower prices are anticipated, and English cheese is offered at Is 3d.” Freight is now l|d per lb, and other charges increase the cost of transit to something over 2d, so taking the English figure as a parity, the free-on-board value of our cheese would be about Is o%d per lb. But the High Commissioner’s cable, forwarded a day later, though agreeing with the bank’s advice as to the uncertainty and anticipation of a further decline, quotes 147 s per cwt as the c.i.f. price equal to Is l%d f.0.b., so that there ie a disagreement somewhere. It isj to be hoped the High Commissioner is right. Nevertheless the lower price is still good—better by 2d per lb than commandeer values. For five years ended last month the Imperial Government has taken the Dominion’s cheese at 10%d per lb, paying practically cash down, the total value being £21,100,000. The New Zealand market has also been kept supplied, but we are not a cheese eating people like our Home cousins. Moreover, cheese was an army ration, and the almost limitless demand for it influenced some countries that previously specialised in butter production to transfer to cheese. Ireland is a case in point. In 1908 that country’s export of cheese to Britain was valued at £9000; in 1919 it was £2,000,000. In six years the New Zealand exports of cheese—to August in each year—have more than doubled—from Z 33,252 cwt in 1914 to 1,562,673 cwt in 1920. Not only were they enormously increased in volume, but their value up from 6d per pound (early in 1914) to 10%d in 1920. Army needs are practically gone, and the British consumer’s spending power is diminishing, and the importations which were only a sufficiency previously, are now apparently exceeding the demand. Fortunately for many of our companies their directors were not obsessed with the absurd idea That the commandeer was a species of highway robbery in the matter of prices, and they were shrewd enough to accept the price of Is 2sd so freely offered by Home buyers. Other companies, however, decided to consign, and they may have to accept lower values. It is disappointing that the high prices are not being maintained, but producers generally will have to accustom themselves to the idea that the days of soaring prices are over. A number of companies, as stated, have sold their output outright—at up to Is in an odd case or two. Others have contracted with the Wholesale Co-operative Society to dispose of their cheese. These will take the chances of the market. as .will those that are consigning, and the bulk of the export, it may be assumed, will be under the last two headings. Some of the larger companies have dual plants, and may revert to butter production, but on the other hand the bright cheese prospects early in the season influenced the replacement of butter plants by those solely for the manufacture of cheese. In view of the fact that fid per lb before the war

was adeemed a satisfactory price, and lOfd was the maximum paid under the commandeer, the present estimated price of Is o%d still makes cheese manufacture a profitable industry —not so much so as butter at 280 s per cwt—but the “next best” of our primary industries.