DAIRY WEALTH.

Taranaki Daily News, 14 February 1921, Page 7

DAIRY WEALTH.

AN IMPORTANT FACTOR. INCREASED POPULATION. PROBLEMS BEFORE PRODUCERS. An important part played by butter and cheese in the financial position of the Dominion at the present time is made apparent by the latest grading figures. These show that the quantities of each sent into the grading stores, and mainly for export, show the following increases over those similarly dealt with last season. The period in review is Ist August to 31st January, but There are two months yet to go, months of substantial production, although towards the middle of March the milk supply begins to slacken. The figures are as follows: — Butter. Cheese. Aug.-Jan.— Tons. Tons. 1921 22,934 37,025 1920 ......... 12,622 34,952 1921 increases 10,312 2,073 Messrs. J. M. Mac Ewan and Co., have calculated the returns derived from butter and chee.?o ae follow:—(Butter, £6,421,520: cheese. £4.751,541; or a total of £11,173, 061. The butter has been taken at 2SOs per cwt., the price which the Imperial Government has paid for it, and the cheese at the price of 13|d per pound. The estimated return for cheese errs, if anything, on the side of caption. As a matter of fact, for much of it producers had before the Reason opened secured 14d, and even up to 14 3-8 or I4|d was netted for some outputs. Its valnp then is not overestimated. Cheese shipped by the Tainui, which left here on 2rd December. has realised in London 160 s per, cwt. for colored and 156 s per cwt, for white, or approximately Is s£d and Is 4jd. SLOW SHIPPING. The dairy farmer, is however, 'faced with two rather complex problems which require some education. They relate to both cheese and butter. With respect to cheese, it is all too slow in getting away from the Dominion. Ships are slow to turn round, i.e., discharge and load in New Zealand, as has recently been pointed out in The Post. This slow working is not. likely to immediately improve in view of difficulties that have arisen at Auckland connected with the working of overtime at that port. There are very heavy .accumulations of cheese in the various stores of the Dominion awaiting shipment. The insulated space is controlled by the Imperial Government, and, naturally, its own produce has priority in the allotment of that space. Provision has also to be made for the shipment of frozen meat —Gov-ernment-owned and “free” meat —all the time, as last season the cheese was the property of the Imperial Government its export was a matter of indifference to producers so long as they could have their produce received in stores at port of shipment. CANADIAN COMPETITION. It is different now. The competition of Canada has to “be taken into account by New Zealand producers in the landing of their cheese in the British market. There is an impression in the minds of authorities in the provision trade at Home that current cheese markets will not hold. The urgency, then, of speedy transference of New Zealand cheese to market is made sufficiently appaxent. It might be a very serious matter for the New Zealand producer, and, thicugh him for the country at large if because of shipping delays, or other causes the present season’s make of cheese went on to a glutted summer market. In the meantime storage charges and interest are being incurred by producers here because of the tardy shipments of cheese. . The cheese freight question is still unsettled. It was l|d per pound, plus 10 per cent. This was reduced to l|d per pound, plus 10 per cent, but the point at issue is whether it should be l|d from date of acceptance or from the opening of the export season with the first consignment of cheese. The butter makers’ problem is: Where will he stand after 31st March next? He is receiving, from the Imperial Government to-day 2s 6d per pound free on board; but that purchase ends on the 31st of nex-t month. It does notjook as if it will be renewed in the same terms, for the Imperial purchaser has reduced his selling price by Id and is losing that amount on every pound of butter going into consumption. The winter months are still with Britain—the months of diminished Northern Hemisphere butter production, and yet the market is falling. British retailers with a margin of 4d can well afford to cut their butter prices by Id or 2d per pound to catch other trade, and the Government butter itself is down Id. The future of the British butter market then is towards easiness. Then there is the great New Zealand question of the local price of butter. If the price falls at Home will the Government abandon its butter subsidy to concerns supplying the New Zealand market, and let prices find their natural level, or will it continue some sort of subsidy to cheapen butter for domestic consumption below its value-vwhatever that may be—for export to other markets? The butter producers are very anxious to have this matter cleared up, if it can be cleared up, before they begin to make arrangements for supplies. The supplies enter into the question of production of both butter and cheese, for contracts have to be made long before the season begins for the supply of salt, rennet, vegetable parchment, cheese cloth, butter-boxes (formerly lOd each, now 4s), and cheese crates. There are other important matters, too, connected with costs of production and distribution such as labor, freight and transport which have to be arranged well before hand by the producing concerns, but about which there is at present much uncertainty, calling for more than usual foresight and caution. —Wellington Post.