ON THE LAND

Taranaki Daily News, 10 April 1928, Page 16

ON THE LAND

MILK-THIRSTY U.S.A, CANADA SUPPLIES. CHEESE MARKET RESULTS. Canada’s export of dairy products, stated in terms of butter-fat, wai in 1918-19, 76/232,28‘21b; in 1926-27, 84,903,1391 b. These figures in themselves have no particular meaning for New Zealand, which is also an exporter ci butter-fat; but they begin to have a meaning when it is added that in 191819 the percentage that was taken by the United States was 8.2; in 1926-27, 32.5. In other words, nearly one-third of Canada’s exported dairy products went in 1926-27 to the United States; in 1918-19 only about oue-twelfth. “MORE STABLE” THAN BUTTER. ! Last week in this column was quoted a remark by the chairman of the New Zealand Dairy Produce Board (Mr. Grounds) to the effect that diversion of Canadian cream to U.S.A, betters the United Kingdom market for New Zealand, “Canada and New Zealand having supplied the major imported requirements of Great Britain’’ in cheese. The figures published above give point to the chairman’s argument, and to his deduction that the future is “much more stable” for the cheese market than for the butter market —an utterance that surely should carry weight in the ’ New Zealand dairying world, and particularly in those districts where there is a wavering between loyalty to the local cheese factory and the lure of the cream-collecting lorry from the buttter factory miles away. I? will add to tiie authority behind the quoted figures when the reader learns that they were quoted by no less an expert than Mr. J. A. Ruddick, Canadian Dairy Commissioner, formerly in the New Zealand dairy service. Mr. Ruddick goes farther and says: “Practically one-third of our total exports (of dairy products) was to the United States during the fiscal ' year ended March 31, 1827. The proportion will be considerably larger during the present fiscal year. Cream is the largest item in these exports at present. In 1919 the exports of cream were 485,015 gallons, and the exports of milk were 827,973 gallons. In 19’27 the exports of cream were 4,498,5’28 gallons, and of milk, 4,886,4-45 gallons. The increase in the export of cheese is also very striking. In 1919 only 150,0651 b of cheese was exported to the United States; in 1927, 14,000,0621 b.” DIVERSION OF CANADIAN CHEESE As a factor in the diversion of Canadian milk products, the ice cream demand of the United States has already been emphasised by Mr. Grounds. The cheese demand of U.S.A, is dealt with in some detail by Mr. Ruddick, who expects that the' Canadian export of “washed curd” cheese will increase, but says that the increased American demand for the regular Canadian Cheddar is more significant. “This demand comes partly from the makers of process, pasteurised, and so-called 'club cheese, the National Biscuit Co., etc., for which the full-flavoured Canadian cheese is said to be preferable to anything available in the United States. In other words, the demand comes from those to whom a particular quality is of more ' importance than price.” xor many years the standard of living in the United has steadily risen, and unless some quite unexpected cheek occurs in that high-wage country—a check to the cheese standard of living as well as to the ice cream standard —it must be regarded as likely that the U.S.A, demand will expand, with possibilities for New Zealand in the U.S.A, market itself as well as possibilities (by diversion of (anadian dairy products) in the United Kingdom and" Canadian markets. As the Canadians send more and more to the Republic, will not they make a regular seasonal use in Canada of New Zealand supplies, and will not any ground surrendered by them in the British market be claimed by New Zealand, already Britain’s principal oversea supplier of cheese!

MR. RUDDICK ON N.Z. SUPPLIES.

The issue is stated guardedly, as the course of trade can seldom be foreseen. But it is always wise to look ahead as far as one may, and the following utterance of Mr. Ruddick is of prime importance: “This growing market in the United States is a new one. “It is a market which is needed to relieve the great world's market of the United Kingdom, which is on the point of being saturated with the increasing surplus of New Zealand. If any large part of the world’s surplus is absorbed by the United States, the effect will be to maintain a higher level of prices than may be expected if the United Kingdom continues to be the chief outlet for the world’s surplus. “I am not suggesting for a moment that there is an immediate market for all our cheese in the United States, or. that it would be advisable for manufacturers to install at once the necessary equipment to cater for this American market, but I think it must be apparent in view of the facts I have quoted that unless the unexpected happens, the future of dairying in Ontario, as well as that of the whole of Canada, will be a matter, more or leas, of trading with the United States. If that is so, it means that we are approaching the parting of the ways. Ido not see anything alarming in- this prospect. As a matter of fact, it looks to me as though Canadian dairy producers are very favourably’ situated with the great world s market within easy reach in the United Kingdom, and with the largest consuming country’ in the world next door, a country which is rapidly’ increasing its imports and which must pay a premium on the world’s price in order to fill its requirements. Ido not know of any other important dairying country occupying such an enviable position.” Proximity' is certainly' an element in marketing, especially if the marketed articles are more or less perishable. Less transport from Canada to U.S.A, than from Canada to Britain may leave New Zealand in a baWer position to face transport of her products across the world. But

though it may be considered that Canada mid New Zealand have great climatic and advantages qv«r SSUlßeiita coun-

tries in the making of a cheese, and that their cheese position is much stronger than their butter position, it is not to be assumed that high returns from cheese will fail to invite challengers. In concluding his remarks with his customary warning to suppliers that they must maintain their quality, Mr. Ruddick has constructed a sentence which may' have for New Zealanders a double meaning. “Of course we must not make the mistake of assuming that we shall not have some competitors, if this United States demand becomes worth while, but that is another reason why it is important to maintain a high standard of quality,” ARGENTINE CATTLE. FOOT AND MOUTH DISEASE. EFFECT ON BEEF EXPORT. A sta: Cling account of the widespread occurrence of foot-and-mout’i disease in Argentina was given recently in a letter to the Times, by Sir William Haldane, of Edinburgh, who has been making exhaustive inquiries into the problem in Britain. “The information I c.-.i receiving at present from Argentina,” he wrote, “makes it evident that now foot-and-mouth disease is prevalent all ewer that, country, unless possibly in a few remote districts, and that it has passed beyond the power of the .Argentine autiiorities io save the herds of that country from this devastating disease. From "a most trustworthy and well-in-formed quarter I have private tonfirma*tion of the published statements as to the serious position of matters. Without going into detail, the position as described is such that no effective quarantine of the cattle to be slaughtered for export to this country is possible now against this insidious disease. INFECTION IN MEAT

“All that can be done is to en.lei’.vGur one way or another to reduce somewhat the amount of infection that Argentine chilled beef will necessarily' carry here while its importation continues. The Argentine authorities appear no longer to question that chilled carcases ot infected cattle retain the disease in virulent form for several weeks, and tii’ia are, an almost certain source from which infection can be spread in countr.es where their beef is consumed. “The position is thus very serious indeed, not merely as regards British farmers whose stock may' become infected, but also as regards British consumers of Argentine beef and the producers in Argentina who depend almost entirely on British demand. The Argentines are fully alive to the danger facing one of their foremost exports, and their Government is being blamed for its remissness in having allowed the | spread of the disease through their count./ unchecked. I learn that ewj their best |pedigree herds of great value cannot i now be kept free from infection.” BRITISH MEAT SUPPLIES. “It is obvious that in the interests of this country' very serious consideration must now' be given to the position. of our beef supplies,” Sir William Haldane continued. “Clearly we cannot depend for such an enormous proportion of our meat requirements on one foreign country whose standards as to meat immunity from disease are apparently on a much lower level than ours or those of our Commonwealth and Dominions. We have allowed our dependence oti a foreign country to become far too great for the safety of our own people. The figures I have obtained indicate that last year South America supplied twofifths* of our estimated beef consumttion. Apart from disease, such as we are now faced with, we are bound to consider the possibilities of revolution, or, worse still, a war, which might easily result in our supplies from the River Plate being absolutely' cut off. “Surely it is high time to develop, tne supply of our meat requirements within our own Empire, and I trust this subject may now receive greater attention than in the past. British African supplies within as short distance as South America. We have allowed the competition of foreign beef, produced wiUt cheaper labour and at low cost, I to supplant a large part of the production of this country, and also, a very l large proportion of our former imports i from Australia, New Zealand and Canada in all of which countries the utI most care has been taken, regardless ot I cost, to exclude the disease which is now sweeping over South America. The I trade figures bearing on this are instructive in showing how the enormous expansion in Argentine beef supplies lias I corresponded with reduction m Empire 'supplies to the British market in late IVcars. - . must take blame to ourselves io> the state of matters that has now (arisen, and, in fairness to our foreign i competitors, recognise the efforts the I Argentine breeders have made tor many years to grow the beef that suits out ! markets, and the enterprise of the im- ! porters in applying the Chicago methods of mass meat production, enabling it to be placed in our markets at minimum | cost. Their success was in fair way to (whether Home or colonial producers. I had the South American Governments taken the same precaution agaiast disease as has been taken so wisely I throughout the British Empire.