DAIRY SUPPLIES

Waikato Times, Volume 121, Issue 20284, 28 August 1937, Page 26 (Supplement)

DAIRY SUPPLIES

PRODUCE SUPPLIES IN 1936. RECORD QUANTITIES. Record quantities of New Zealand butter were imported into the United Kingdom in 1936, according to Dairy Produce Supplies in 1936, a review just published by the Imperial Economic Committee. Imports of pork and milk powder from the Dominion were also greater than in any previous year, but 6 per cent, less cheese was received. For all these commodities New Zealand occupied first place on the United Kingdom market last year.

The volume of dairy produce, pig and poultry products entering international trade appears to have increased very slightly in 1936, and the United Kingdom’s share of world imports was fully maintained. Last year the latter country absorbed more than four-fifths of the butter entering world trade, more than half the cheese and eggs and practically all the bacon. Dairy products continued to decline in price when many farm commodities were showing a recovery from depression conditions, but in the past

two years the price of dairy produce rose rather more than food products in general. Total imports of dairy, pig and poultry products into the United Kingdom in 1936 cost nearly £8,500,000 more than in the previous year, following an increase of £3,000,000 between 1934 and 1935. Factors Affecting Trade. The features of significance which affected the trade in dairy products in 1936 included (1) unfavourable weather conditions in Australia and the consequent reduction in the export of butter, (2) unusually mild autumn and winter weather throughout Europe which greatly increased the winter exports of butter and eggs, and (3) poor cereal harvests, particularly in the United States, which had an effect on pig products, and also caused the importation of a certain quantity of dairy products. The most important feature on the demand side was probably the increased purchasing power arising from greater industrial activity. Thus, a relatively large increase in butter prices in the United Kingdom was accompanied by only a relatively small decline in consumption, while there was a higher apparent consumption of eggs despite a slight rise in prices. Imports of butter into the United Kingdom in 1936 reached a record figure of 9,750,000 cwts., valued at £44,400,000. Supplies from Empire sources comprised 53 per cent, of the total, compared with 57 per cent, in 1935, the decline being due to smaller shipments from Australia. Imports from New Zealand, the chief source, were greater than in any previous year, and accounted for 29 per cent, of all imports. New Zealand butter averaged 10 per cent, higher in price than in 1935 and Danish 6 per cent, higher. The apparent consumption of butter is estimated at 24.8 lb. per head in 1936 against 25.2 lb. in 1934 and 1935 and only 18.7 lb. in 1930. It is interesting to note that margarine consumption, according to the report, rose from 8.4 lb. per head in 1935 to 8.7 lb. last year, although remaining well below the 1930 figure of 11.8 lb. Declining Cheese Imports. The United Kingdom’s imports of cheese have been declining in recent years and the total quantity of 2,676,000 cwts. imported in 1936 was the smallest in any year since 1922. Empire supplies, however, increased slightly and comprised 90 per cent, of total imports, New Zealand alone accounting for 63 per cent, although sending less than in 1935; Canada supplied the bulk of the remainder. There was an appreciable increase in prices, which amounted to 24 per cent, in the case of New Zealand finest white. The home output of cheese also appears to have been slightly reduced last year and, as a result, consumption of cheese in the United Kingdom fell to 8.8 lb. per head from 9.1 lb. in 1935. Imports of condensed milk in 1936 were 6 per cent, smaller than in 1935. The home output again

Increased and exports of condensed milk from the United Kingdom, mainly to tropical countries, showed a further substantial advance.

In addition to the comprehensive figures given for the United Kingdom, statistics of the external trade in dairy produce of other countries are included and also an account of the measures adopted by foreign governments for the support of the industry. The review also examines in some detail the effect on home production of the operation of the British milk and bacon marketing schemes.