BUTTER AND CHEESE.

Taranaki Daily News, 30 May 1921, Page 7

BUTTER AND CHEESE.

FUTURE PROSPECTS OBSCURE. Some interesting observations concerning New Zealand dairy produce—butter and cheese —on the Home markets, were made to a Manawatu Times reporter on Wednesday by Mr. C. R. Beattie, who has just returned to Palmerston North after an absence of seven months. While in London, Mr. Beattie spent much time with his principals, Messrs. Lovell and 'Christmas, Ltd., produce merchants. “During the time I was in London,” said Mr. Beattie, “all the New Zealand butter was under Government control, it having been purchased until up to the end of March of this year, so that the price at which it was selling in London is really no criterion of what the market value would have been had the product been disposed of under usual market conditions. The Government was filing the retail pricee of New Zealand butter under its control from time to time. None of the imported butters were distinguished by any other name, but that of Government butter, and all such butter was sold at a flat rate. When I reached London, at the beginning of December, the retail price of Government butter was 3s 4d per lb. At various intervals it was gradually reduced until, at the time of my departure, which was the middle of February, the price was down to 2s Sd. Up to the middle of March ,fhe Imperial Government still had enormous quantities of 'purchase’ butter—approximately 58,000 tons —and it was expected that the prices would have to be still further reduced to enable this. butter to come into consumption. MARGARINE. “The average consumer,” said our infonfiant, “has become accustomed to the use of margarine, which could be obtained at a much less cost than the Gov ernment butter.” As the consumers’ purchasing power was becoming less and less as time went on. they wore not much inclined to pay the prices for Government butter as compared with the. price at which they could obtain good, wholesome margarine.

Questioned as to the future prospects of the butter and cheese markets, Mr. Beattie said that the position with regard to both these products was, and is, still so obscure that even the nest experts in the trade were quite unable to predict what the prices are likely to be, even a few months ahead. “But,” he said, “the general consensus of opinion was that there would have to be a very considerable drop in the values of both New Zealand butter and cheese for the next season. As was well known, New Zealand butter, during the past season—ending in March—was sold to the Imperial Government at 2s 6d per lb, f.o.b. local ports, ibut it seemed quite certain that so high a price will not be seen again for many a long day, and manufacturers, in New Zealand cannot hope to obtain more than Is 6d per lb, f.0.b.” THE CHEESE MARKET.

Dealing with cheese, Mr. Beattie observed that, at the time he left England, it was practically impossible for anyone to predict a price. When he sailed, the price for New Zealand white clteese ranged from 148 s to 1535, and for colored cheese, .156 s to 160 s. Since then, however, the prices receded, and one cause of this was the financial stringency existing in London, which had the effect of inducing some holders of cheese to endeavor to quit as quickly as possible in order to realise, and, in so doing, forced down the price. “Compared with other countries what will be the demand for New Zealand cheese?’ asked the reporter. “The demand for our cheese,” replied Mr. Beattie, “promises to be quite good, and there is no doubt that New Zea-land-made cheese will continue to hold a good position in the markets as compared with cheese imported from other sources. Up till the time I left London, the Government purchase cheese was being placed on the market at prices fixed by the Food Controller ,and, of course, ‘free’ choice was affected by the prices fixed for the Government cheese.” CASEIN. Mr. Beattie interviewed some of the principal importers of casein, and as a result of enquiries and conversations, he learned that this product was being imported into England from various sources and at considerably lower prices than was being asked -for New Zealand casein. While New Zealand casein was considered as good as the best, none of the Home firms interested in casein and its products were disposed to pay the higher prices asked for by New Zealand when they could obtain all they required from other sources at considerably lower figures. £BO a ton, c.i.f., was being asked for our casein, which price was quite prohibitive. The opinion at Home was that the prices for New Zealand casein would have to come down to the neighborhood of £55 per ton before business could be done. The demand for casein generally was, at the time of Mr, Beattie’s visit,' very limited.