The Daily News. TUESDAY, JULY 26, 1921. DAIRY PRODUCE OUTLOOK.

Taranaki Daily News, 26 July 1921, Page 4

The Daily News. TUESDAY, JULY 26, 1921. DAIRY PRODUCE OUTLOOK.

Speaking at Palmerston North, Mr. Nathan attributed the substantial rise in prices for dairy produce partly to the drought in Britain and on the Continent and partly to the resumption of industries after the termination of the coal strike. The review of the con : ditions concerning last week’s British trade does not refer to revived trade as a factor in the improved prospects for butter and cheese, but stresses the effect of the drought in strengthening the market, not only for the present but in the immediate future. While deploring the loss caused to British and Ccn-tinental producers through the prolonged heat and drought, there can be no doubt that the misfortune will prove advantageous to the producers of the Dominions. The prospects for the coming season are such as should engender a well justified feeling of optimism on the part of New Zealand dairymen, as a strong market is expected till the end of March at least../ Not only has the drought caused the chief dairying centres 'of Britain to cease supplying their usual. markets, but has compelled them to purchase Government butter, while a similar shortage of American supplies will create a demand in that quarter. Moreover, the run on Danish butter to meet the requirements of Europe must inevitably exceed the output. As a matter of fact we are told that some Continental buyers have already purchased New Zealand butter from the British Government to the extent of several hundred tons, thereby helping to solve the difficult problem which faced the Home authorities • connected with the disposal of a large accumulation of butter without suffering a financial loss, while it is probable that the whole stock will be cleared by the time the Dominion’s new season produce arrives in anj 7 quantity. Fortunately the outlook for cheese is equally satisfactory. The large increased consumption of cheese in Britain during the hot weather has also helped to prepare a favorable market for this commodity, so that New Zealand dairy farmers can confidently look forward to their produce being sold at favorable prices. It may be that it will find favor on the Continent and will result in permanent benefit to the industry. In this connection it would be most advisable that during the coming season special care should be taken by the farmers over the quality and condition of the milk delivered at the factories. The Dominion can use to advantage all the money derived from its produce, particularly as the burden of taxation is not likely to be easier. The need for greater production has been stressed again and again; it is still as urgent as ever. Taranaki owes its prosperity to the dairying industry, hence the importance of satisfactory prices being obtained. The producers may be congratulated on the favorable turn the market has taken and on the good prospects of its continuing in their favor. This should stimulate them to do their

best towards increasing the value of their produce 'by exercising the utmost care over the milk, so that the factories may have a fair chance of turning out finished products that will obtain the highest prices, and. t'o put their financial affairs in order, so enabling them to face with equanimity later on the inevitable fall in values of their products.