DAIRY PRODUCE TRADE

Waikato Times, Volume 124, Issue 20736, 21 February 1939, Page 9

DAIRY PRODUCE TRADE

INTERNATIONAL TRENDS RECOVERY IN PRICE LEVELS BRITAIN THE GREATEST MARKET trade in dairy produce, just issued by the Imperial Economic Committee, notes a continued increase in the output of the chief dairy products and the maintenance of international trade in butter at the high level attained during the past two or three years. International trade in cheese has been declining for several years, although this tendency was checked to some extent during 1937, while trade in eggs, which had recovered in 1930 from a downward trend lasting for some years, has since increased further. The increase in world butter production and trade during a number of years has been accompanied by a remarkable expansion of consumption in I lie United Kingdom but, more recently. wiih an increase in butter prices and in Ihe consumption of margarine. I his trend appears to have been reversed. There has not been, however, oil her in ! lie United Kingdom or in Empire countries overarms, any marked reduction in Ihe total consumed. while in Germany ihe past two or three years have witnessed a pronounced increase. There still remain large differences as between different countries in the level of consumption; this is highest in the overseas Dominions, where an annual figure of from 30 to 401 b a head is usual, but in the chief consuming countries of continental Europe and in the United States the comparable figures are more commonly from 12 to 201 b a head. In the United Kingdom per caput consumption has recently averaged about 251 b per annum. Trade in Butter Until very lately the growing world exports of butter were directed towards the United Kingdom market, but Germany has for some years been taking increasing quantities, and there has been among the smaller European importing countries some relaxation of the restrictions on imports which were imposed during the crisis years. The United Kingdom, however, remains by far the most important market and still takes about four-fifths of the total butter entering world trade. Approximately one-half of the United Kingdom’s imports come from Empire countries.

The United Kingdom is also the most important market for cheese, although to a much smaller extent than for butter since Germany, Belgium, France and the United States alt import considerable quantities. In contrast to butter, international trade in cheese has tended to decline in recent years, exports from New Zealand, the Netherlands and Canada being now much smaller than a few years ago. There was, however, during 1937, a check to this decline.

The United Kingdom’s imports, 90 per cent of which are from Empire sources, have moved, on the whole, within fairly narrow limits during the past seven or eight years, declining until 1936 but thereafter recovering. The consumption of cheese has in many cases tended to increase, the United Kingdom, with an annual figure of from 8 to 91b a head, being the only important consumer to show a persistent reduction in recent years. The level of consumption in European countries is considerably higher than in Empire countries, occasionally being as much as 15 to 201 b a head, and in general appears to have advanced during the past few years. Further Advance In Prices Prices for dairy produce and eggs have to a large extent recovered from the low levels to which they had fallen during the depression. By 1937 butter prices on the United Kingdom market were little lower, on average, than in 1931, while those for cheese showed an even more marked re-

covery, prices in 1937 almost attaining the 1930 level. The fall in prices was not so severe for eggs as for milk products, and although quotations for home produced eggs were by 1937 almost as high as six years’ earlier, those for imported eggs showed a much smaller recovery.

The upward movement in butter prices continued during the greater part of 1938, although from the middle of the year the margin over the corresponding 1937 quotations was narrowing and in the late autumn quotations fell below the previous year’s level. A somewhat similar trend was recorded for cheese and egg prices, which also during 193 S exceeded, on average, the corresponding figures for 1937, although towards the end of the year they were below the comparable figures for th» preceding year. Milk Products The review includes a survey of production and trade in processed milk and casein. The output of the former commodity expanded considerably in the United Kingdom after J 933 and in 1937 was more than three times as greal as in Hie earlier year; the total manufactured in Ihe United States, by far Hie largest producer, and in Hie Netherlands lias also in creased considerably. The United Kingdom remains the largest importer of processed milk, although the quantities now taken me very much smaller than a few veais

ago. The trade in casein has been fairly well maintained; Argentina and France remain the chief exporters of tiiis product, which is marketed chiefly in tlie United Kingdom and Ger-