SURPLUS BUTTER.

Taranaki Daily News, 16 July 1921, Page 8

SURPLUS BUTTER.

EXPORT TO BE PERMITTED. THE QUESTION OF PRICE, Tbn manufacture of butter in New Zealand since March 31, when the Imperial contract terminated, has been substantially larger than was anticipated, and consequently a quantity has become. available for export. The conditions under which export Will be permitted were announced on Thursday. It is very unusual for the output of butter from the New Zealand factories to equal the consumption during the winter months. The dairying districts, however, have been experiencing a particularly mild winter thia year, and a further factor in maintaining production at an unexpectedly high level has been the manufacture of butter in factories that turned from cheese to butter in February and March, when the prices ruling for hutter were better than for cheese." Many factories with dual plants have continued to make butter in preference to cheese since that time. The announcement made this week by the Controller is that permission will be granted by the Customs Department for the export of whey butter, milled butter and dairy butter, and of a maximum amount of 30,000 boxes of creamery butter. There will be no restriction on the export of whey, milled and dairy butter, beyond formal application to the Collector of Customs at the port of shipment. These classifications cover the second grade butter, which is not required for local consumption, in view of the fact that there is an adequate supply of creamery butter. Applications for permission to export creamery butter require to be made to the Comptroller of Customs at Wellington, in order that a check may be kept on the total quantity exported.

The accumulation of a surplus of butter in New Zealand, despite the fact that up to March 31 every available pound was sold to the Imperial Government. has created a rather difficult position for the factories and dairy associations. The arrangement under which < the New Zealand public is being supplied with butter at the present time gives a return of about 2s 14d per lb at the factory door. The Government pays a subsidy of 3d per pound, in order that the maximum retail price for cash shall be 2s 3d per pound. A good deal of butter, as a matter of fact, is being retailed at less than 2s 3d. The London, wholesale price, which was increased a few days ago. stands at about Is llAd per Ih, and this price represents Is 9d in New Zealand. It appears, therefore, that butter exported at the present time will bring a lower price than butter sold for local consumption. The Government, of course, will not pay any subsidy on butter sold for export, and it will leave to the dairy interests the task of deciding what, butter must be sent abroad.