DAIRY PRODUCE MARKET.

Taranaki Daily News, 23 August 1922, Page 10

DAIRY PRODUCE MARKET.

A REMARKABLE CHANGE. CHANGED CONDITIONS, DRY MILK. MAY BE A THING OF THE PAST. Writing from London under date 26th June, Mr. R. Ellison, representing the National Daily Association, says: The remarkable change in both the butter and cheese markets has no doubt been more or less of a surprise and an agreeable surprise at that.

To-day it is difficult to state the value of New Zealand butter. Ten days ago the price was 184/-. It rose rapidly from this figure to 236/-. During this time, all available stocks passed out of the hands of importers. Large quantities were purchased by multiple shop owners and the big stores, also the blenders, who must, to protect themselves 'be prepared to carry resisting, stocks. So keen has the demand been for butter that the market is now bare of stocks. If even moderate quantities are required they can only be got from wholesale houses or large retailers, who may be prepared to sell in limited quantities and take a profit on their purchases.

The contributing causes to the present healthy butter position are to be found first of all in the clearing of the market of the Government accumulation of New Zealand and Australian butters. It has been stated that, while negotiations were proceeding as between the Imperial Government and the Colonial Government, that certain importers stepped in and purchased the remaining stocks, and prevented the Colonial Government securing these stocks. We are of the opinion that neither the Dominion nor ♦he Commonwealth Governments were at all anxious to -be drawn into purchasing these stocks, and were relieved to know that they had been 'cleared without their intervention. At any rate the negotiations were of too proa nature. It is advisable to aer promptly in such matters.

The fact that these stocks passed into the possession of several large importers had a steadying effect upon the market, even more so than if the stocks had passed from one Government to another Government. From this point, the butter market began to mend, and has continued to advance more or less ever since.

The price at which this butter was bought allowed of a low retail price, and the public once more got accustomed to use butter-and neglected margarine. Another factor in bringing about the present condition is the loss of the Siberian and Russian supplies, which in the pre-war period were a factor in the trade. It will be some years before these countries can again be in a position to export any quantity of butter to the United Kingdom. The spring generally was late in the Northern Hemisphere, and when the fine weather came it set in dry, and the country has been severely handicapped, due to restricted ramiail, The disturbed state of Ireland has restricted the export irom that country. For several months in the beginning of the year, the Continent were heavy buyers of butter from the United Kingdom, largely New Zealand and AusA combination of circumstances has therefore contributed to the creation of the position as we find it to-day. From present indications there is bound to be a shortage of butter until the shipments from Australia and New Zealand are resumed.

We may have, at an early date, made reference to the changed conditions which • are developing in regard to the butter supplies for this country. The increase in the make from Australia, New Zealand, South Africa and the Argentine would indicaW the possibility of a condition arising in which butter would be cheaper during the winter months than during the summer in the United Kingdom. The Board of Trade figurps show that from January 1 to May 31 this year 828,000 boxes of butter were exported from the United Kingdom, and the same period last year only 13,000 boxes were exported. We mentioned some tihie ago the advent of the Jensen steriliser for the treatment of whole milk. The writer had the interesting experience of inspecting recently a can of milk shipped from South Africa to .this country. The milk was as sweet as the day it Was milked, and remained so for several days in a room, the temperature of which wa* 70 degrees F. The process o‘ - treating milk will of fresh milk being available on all passenger steamers, no mar,l er what ;he duration of the voyage, and incidentally means the end of the dried milk business, an industry which has never been based on a sound understanding of the demand which temporarily sprang into prominance during the war. The cheese market, after declining to 70s, suddenly recovered., due in some small extent to America buying on this market. The dry weather in the United Kingdom has also affected the position, and it must not be forgotten that thp export of cheese from Canada to the United Kingdom Was during the first four months of this year 94.243 ewt. against 156.000 cwt. in the same period of 19-21. and 193.000 cwt. in 1920. It now looks as if the balance of the New Zealand cheese for the present season will meet a fairly high market.

The immediate future for both butter and cheese U satisfactory, and the producers must feel relieved to find this improvement.