DAIRY PRODUCE

Taranaki Daily News, 15 November 1926, Page 11

DAIRY PRODUCE

STATE OF THE MARKET I SUPPLY EXCEEDS THE DEMAND. INCREASING COMPETITION. < (From Our Own Correspondent.) Wellington, Nov. 13. According to a statement made in Auckland at the meeting of the Chamber of Commerce, stored New Zealand butter was being offered at 138 s and controlled butter at the “named” ptice of 150 s, and was meeting with a dull market. The Dairy Board cannot be held responsible for the slump in stored butter, and as to controlled butter we have yet to discover how the “naming” of minimum prices will operate. Probably if 150 s is found to be restricting business the price will be reduced. A reduction seems inevitable if stored butter is really selling as low as 138 s. The dullness is due to the restricted purchasing power of the consumers and to the apparent excess in supplies. Until the surplus is moved off the market must remain dull and depressed, and the movement of the surplus can be effected only by stimulating consumption, and that can be done by reducing retail prices. At the moment there are special circumstances operating to depress the market, just as last year the strike of British seamen, which interfered with regular shipments, forced prices up by causing a temporary shortage. The question for the consideration of the dairy farmers is as to the effect of future competition and the effect of that competition. Just now they are suffering from “mass speculation” through pursuing the hold-up policy, and that cannot be repeated with the Dairy Board in control. The New Zealand dairy farmers must be prepared to meet increased competition from various producing countries. According to Weddel and Co.’s annual review of the dairy produce trade the imports into the United Kingdom for the year ended June 30, 1926, totalled 256,"961 tons, as compared with 277,898. tons in 192425, a decrease of 20,937 tons, or 7.5 per cent. The figures do not include the supplies from the Irish Free State. Of the total imports 99,884 tons, or 38.9 per cent., were received from British sources, and 157,077 tons, or 61.1 per cent., from foreign sources. In the proceeding year the proportions were 47 and 53 per cent. Imports of Canadian butter were heavier by 1198 tons, or 17.4 per cent., but there were decreases from Australia and New Zealand. As regards the foreign total, this, Weddel and Co. state was the heaviest on record. Practically all the individual sources of supply augmented their outputs, the most notable being increases of 4526 tons from Denmark, 2230 tons from Argentine, and 3409 tons from Sweden. French and Dutch butters also recovered slightly from the reduced quantities shipped in the preceding year. From Russia there was the surprising decrease of 4395 tons, or 23.4 per cent. Owing to the increased duty imposed by the United States, Canadian butter is shut out of that market; consequently more is available for export and for local consumption. There is therefore little, if any, demand for New Zealand butter. The German tariff has practically closed the door to the Danes, and the bulk of their production is now marketed in Britain. The imports of butter from the Argentine showed an increase of 2230 tons, or 9.9 per cent., and as regards quality, Weddel and Co. say: “It is highly gratifying to be able to note that the improvement reported a year ago has been fully maintained.” Although South Africa exported very little dairy produce, the 75 butter factories and the 138 cheese factories produced sufficient to provide for local requirements without having to resort to imports from Australia. Production in all countries is tending to increase, and improvement in quality is keeping pace with this. It is becoming more and more evident that the market for dairy produce will be restricted to Britain, where quality will always have consideration. Europe is not only increasing its output, but is able to do so at a relatively cheap cost. • The dairy fanners of the Dominion will have to face continuously increasing competition, and must therefore concentrate on quality and the reduction of the cost of production. INCREASED PRODUCTION. INTERESTING FIGURES. The Farmers’ Co-operative Organisation Society of New Zealand, Ltd have been advised by their London agents of the following regarding dairy produce:— “Survey of the butter trade in 1925. An American official summary of the world’s trade in butter gives the international movement of butter in 1925 at 990 million pounds, against 822 million pounds in 1924. The exports decreased from Denmark, New Zealand and Argentina, but increased from Australia, Holland, Ruesia, Finland and the Baltic countries. As to the importing countries, the report says:—“Great Britain and Germany between them absorb the bulk of the world s butter exports. In 1925, Great Britain took over 69 per cent, and Germany over 22 per cent. Imports into Great Britain increased from 592,033,0001 b. in 1924 to 655,704,0001 b in 1925. The principal sources of supply were Denmark, Australia and New Zealand. From New Zealand supplies increased from 121,180,0001 b in 1924 to 140,622,0001 b in 1925; from Australia they rose from 73,638,0001 b to 130,059,0001 b. Imports from Denmark, on the other hand, declined from 194,223,0001 b in 1924 to 185,702,0001 b in 1925. The year also showed increased imports from Russia, Sweden, France and Canada. Imports into Germany increased from 117,896,0001 b in 1924 to 212,993,0001 b in 1925. 1 Denmark and the Netherlands supplied re- ’ spectively 76,185,0001 b and 61,009,0001 b as compared with 58,663,0001 b and 32,172,- ' 0001 b in 1924. Appreciable quantities of butter also arrived on the German roar--1 ket in 1925 from the Baltic States, Russia, Sweden and Australia.”