A BETTER OUTLOOK

Taranaki Daily News, 28 March 1922, Page 4

A BETTER OUTLOOK

The improvement in the price of butter and the strength of the cheese market mean a great deal to New Zealand and to Taranaki particularly. The dairy produce markets for some months have been very disappointing to producers, whose return han been below the cost of production, and who consequently have been considerably embarrassed financially. The position was made all the harder -by reason of the collapse of the beef market, and the low prices obtaining for wool and mutton. The dairy produce market sustained a big set-back as the result of the unbusinesslike policy of the Imperial Government in rationing supplies when the need for it had disappeared, thus accumulating large stocks, which deteriorated considerably in quality as time went on. These . stocks were, therefore, a twofold disadvantage to New Zealand producers. They depressed the market iujduly, find the poor quality created a temporary prejudice against our produce. When this season’s make of butter reached London prices were about on a par with pre-war prices, and, as soon as the old stocks had been consumed, the public began to show a preference for butter over margarine, the result being that supplies have not been equal to the demand, and prices have been gradually improving, until to-day they offer producers quite a good return. If the same prices could be assured for the rest of the season’s make, the return for the year will be fairly satisfactory, and certainly a great deal better than was thought possible but a month or two beck. There is reason to believe that prices will hold, although experience during the last six months has demonstrated the unwisdom of making any predictions regarding the state of the markets for even weeks ahead. But the conditions at Home and on the Continent are such as to warrant, the belief that there will be a good demand for the butter and cheese we are able to ship Home this year. From a climatic point of view the season has been specially favorable, and it is likely production will be 25 per cent, greater than last year. This increase will serve to compensate dairymen for the lesser prices obtained. We cannot expect a. return of the boom prices of last year—no sensible person could have anticipated that—'but there is good reason to expect prices in the near future will will be such as to ensure a payable reson to expect prices in the next future turn to dairymen, whose prosperity is essential to the general well-being of the rest of the community.