THE DAIRY INDUSTRY.

Taranaki Daily News, 25 August 1922, Page 8

THE DAIRY INDUSTRY.

GREAT PRODUCTION SEASON. PROSPECTS FOR NEXT SEASON. GOOD PRICES EXPECTED. Some interesting remarks reviewing the past few years, present conditions and the prospects for the coming dairying season, were made by Mr. A. Morton, chairman of directors, at the annual meeting of the Mangorei Co-op. Dairy Coy., Ltd., yester- ! day. Mr. Morton spoke at some length, and his remarks were given close attention !by those present. The most noticeable feature in connect tion with the report for this season, Mr. Morton said, was the extraordinary increase in the production of the company, or rather the extraordinary increase in the output of the company, in consequence of the increased supply of milk by the suppliers. He doubted if he could recollect such a good season as the last one, which was reflected in the increased output by the company. It was unfortunate that prices fell so low. Last year was the first •year in which they were again selling their produce in a free market,, following a period of commandeer on the part of the Imperial Government. Unfortunately, the nibrket, in common with everything else, was very disorganised, owing to -the large stocks' of butter in store, and prices werfr prejudicially affected thereby. There had also been serious difficulties in connection with shipping. New Zealand produce lay in the boats adjacent to the London docks in some cases for several weeks after they arrived. These facts all tended to bring down prices during last season, and affected their returns.

After the Government butter was purchased by the Tooley Street operators, a rise took place in prices, and since then they had a tendency to rise, although there had been some slight fluctuation, There were some conditions in the Home market never before experienced. They had the difficulties mentioned to contend with, and following on that there had been an extraordinary demand for butter never before experienced at that time of the year. He referred to the high prices obtained in England in February, March and April last. At that period of the year it was usually difficult to realise high prices, the normal practice being to ship before the end of February, and then endeavor to find local markets; but the contrary had obtained this year. The companies which had taken the risk of shipping Home instead of finding local markets had in some cases realised very high prices indeed. In this connection it was interesting to note that there must be a great scarcity in imports of butter into Great Britain, and the supply was not yet up to normal requirements. Prior to the war Britain had imported 210,000 tons of butter, but during the war these figures had fallen to 71,000 tons, although they were -now going up again. The three main butter-producing countries—Australia. New Zealand. and the Argentine—had increased their outputs, the Argentine making the greatest increase; and if any one of these countries took to cheese manufacture, it would mean increased prices for butter There had been a good deal of fluctuation in the cheese market and lower pricF® had been returned to cheese suppliers than to those of butter.

Regarding the prospects for next season, Mr, Morton continued, he had no doubt that the prices for butter would be fairly alluring. The market at the present time was steadilv improving, and prices should be still higher wh*»n the bulk of their produce reached the Home market.