AUSTRALASIAN DAIRY PRODUCE.

Auckland Star, Volume XXXIX, Issue 238, 5 October 1908, Page 6

AUSTRALASIAN DAIRY PRODUCE.

MESSRS WEDDEL REVIEW 1908. ENGLAND'S GROWING DEPENDENCY. ON .COLONIAL SUPPLIES. (From Our Special Correspondent.) LONDOX, August 27. In this interesting and informative review of the' colonial dairy prodnce trade for the season ended last June, Messrs Weddel and: Co., state that the regular and | substantial increase of butter imported into j the United Kingdom which has taken place, j year by year, for the last quarter of a century, except in 1905, when the imports fell off by 15,000 tons, has in 1908 received a more serious shock, the imports of butter having declined to the extent of 18,143 tons, or 8i per cent. The increase for the ten years prior to 1903 averaged 6000 tons annually, so that there is a set back of three average years to overtake. The total quantity of bntter imported for the year under review was 201,134 tons, consisting of 165,----354 tons of foreign, and 35,750 tons of colonial. The reduction occurred altogether in the colonial division, and amounted to 21,----345 tons; the foreign showed an increase of 3,202 tons. The colonial deficiency was chtefly in Australia, tchose shortage reached 11.627 tons. The colonial supply showed a. deficiency of 6,358 tons, and New Zealand arrivals were reduced by 3,360 tons. THE FEATURE OF THE YEAR. The most notable feature of the colonial butter trade was the very serious falling oft in supplies, which showed decrease of over 37 per cent from the previous year, and nearly 9} per cent of the total supplies from all sources. For the three previous years supplies of colonial butter had shown an average of 53,500 tons, bnt for the year under review they reached only 35.750 tons. This surprising shortage was brought about by droughts in Australia, New Zealand, and Canada. The consumers in the Mother Country suffered by having to pay more for their butter, as the foreign supply alone was not nearly sufficient to meet the eudden demand to fill the place of colonial, and consequently prices in the United Kingdom, and in Europe generally, were higher than they had been for over 20 years. The total contribution foreign butter-makers were able to make towards our colonial deficiency of over 21,000 tons, was only 3200 tons. The rise in prices, Messrs Weddel say, ought to have compensated colonial buttermakers by an increase in value for the loss caused by the short supply, and might have done so had there been no butter substitutes to interfere with this. Prices of butthat cheap substitutes for bntter stepped in and supplied the general public with a nutritive commodity, in many cases far more palatable than much of the low quality of butter offered to consumers at very high prices. The consequence was thatprices of butter were brought down to A level which prevented the colonial producers reaping in value what they bad lost in quantity. Notwithstanding this reduction, high prices formed the second great feature of the past year. Not since the year 1883 had butter in the United Kingdom sold at such a high level of value, and foreign but-ter-makers reaped an excellent harvest out of the scarcity of colonial supplies. On looking broadly at the year under review it appears to establish definitely a new condition, which has gradually arisen during the past decade, regarding the supply of butter in our winter months, viz., England's great and growing , dependency on the i colonies for bntter during that period. With all the advantages of suitable and cheap transit, the foreign butter-makers did not increase their contribution to our needs by more than 3,000 tons, not quite two per cent over their supplies of the previous year. It is true that Siberia was afflicted like our colonies by a droughty season, and sent about 2,000 tons less, but with all the attractions of a very dear market in the ' United Kingdom, It was reasonable to suppose that other foreign supplies would have been able to make good any deficiency of colonial butter in our markets, yet the result lias definitely established the contrary. QUALITY OF COLONIAL BUTTER. As regards the quality of Antipodean batters sent Home during the year under review, Messrs Weddel sny that in spite of the adverse conditions under which butter was -made last year, the quality of Victorian and New South Wales on the whole was not" seriously prejudiced, but it cannot be said that any improvement was made, nor ! was it reasonable to expect such a desirable result under the circumstances. In Queensland, however, where very favourable weather prevailed, a remarkable improvement in quality took place, such as no other Australian State, nor even New JUjlnjilft year. Till* voluttotiiftctl tiie position of Qaeensta&d but • i < ii ■ i i i i lIIIHI.MMIIM. .... I I tec on British markets. Previoosly, almost tlie buyer, who found t±ie butter on ani-^il interior to the &nw trafls vi piwty on which it was purchased. During the past year complain ts on rtiirs score were virtually unknown, and buyers here. In place of dietrust, have learned to. place great confi« dence in the acenracy of the grading. The difficulty of maintaining the quality of bntter made under drorignty conditions did not affect tbe reputation of 2«ew Zea- . land butter last year. Even in tlie driest and hottest districts the flavour and texture of tlie batter showed no serious depredation rxosn the previoas year, wnich, however, was Dot considered one of the best seasons for high quality. The presence or tne Dairy Commissioner for the Dominion in this country during the principal part of the season, when the effects of hot weather are most liable to be seen in bntter on its arrival, will no donbt have given him an insight into some of the weak points connected with its manufacture, .and It Is expected that the elimination of these will follow us the remit.of his visit With over 97 per cent of the export butter having

been for some years placed in the first grade, Messrs Weddel think It might now be advisable to make the grading mors severe, and.so raise the.standard of quality even higher than it is at present. COMPULSORY GRADING. On the subject of grading, Messrs Weddel express the opinion that, unless grading be made compulsory, it loses the greater part of its efllcacy in improving tbe general quality of the bntter, and is of little rent benefit to the State. If it be optional,, Its effects are delusive, as only those factories which already make the best bntter avail themselves of the advantages of obtaining a Government certificate as to tbe excellence of their product. Tbe great and Indisputable claim for the system of Government grading lies in the fact that, if it be compulsory, it raises the quality of tbe bntter in all the State. Connected with grading is the stamping out of the number of the grade upon each box. At present. In New South Wales and Victoria, this is only partly in operation. Certificates artissued indicating the grade by reference to a number on the box. This is a very defective method. Often the certificates do not arrive until after the bntter. somerimes they never arrive, and so. In cases where the consignee here does not receive the whole of any given brand In a vessel, he does not know which butter belongs to him. Cross deliveries are made, and general confnslon follows. New Zealand and Queensland stamp the grade on every box, and the system works to perfection. THE BUTTER "BOOM." The year under review will be memorable tor the fact that it produced the highest prices ever reached by Antipodean buttein the Home markets. A double record was rreated, for, not only did It touch alsoIntely the highest figure ever obtained for both kinds, but the average price for the six months, October to March inclusive, was also a record achievement. During the panic which existed in February last both Australian and New Zealand butters ■were sold np to 150/ per cwt in large lines. while even 152/ to 154/ were obtained in many instances for small lots. The crisis affected foreign as well as colonial, and If Is necessary to go back to the year 1883 to find equally high prices for foreign. This was before Australasian butters appeared on our markets. The top price for Australian bntter for the six months, October, 1907, to March, 1908, both months inclusive, averaged 120/10 per cwt; New Zealand, 122/6; Danish, 127/; and Siberian, 115/3. For the month of February—the period of highest values—the Australian top price nveraged 137/6 per cwt: New Zealand, 139/0; Danish, 143/: and Siberian. 134/6. Tho crisis in February was brought about by the accumulation of deficiencies month by month since October. Notwithstanding these increasing shortages, Australian and New Zealand prices remained virtually at a dead level of 116/ to 118/, and 118/ to 120/ respectively, from the middle of November right np to the last week of January, when they rose 4/ per cwt. Agents here were powerless to increase their selling prices of Colonial, owing to the predonunence of Danish bntter, which controls and regulated the general values of butter here, but at last the demand for "the Colonial butter broke through Danish predominancy tlint had for weeks prevented the rise in prices of colonial. The ordinary law of supply and demand wonld have adjusted prices on a fair basis, but the accumulation of pressure carried it to extremes,, and the prices of butters were suddenly carried by the unfiJled demvtnd for oilonlal to extreme levels. The inevitable collapse followed, and prices tumbled down headlong. Colonial fell from 146/ to 116/ In the last week of February, and Danish came down from 152/ to 126/ at the same time. CHEESE. Though tue population of the Old Country grows at the rate of about half a. million a year, the quantity of cheese manufactured in the United Kingdom, and Imported year by year, shows no signs of expansion. The data upon which the decrease of the Home manufacture is founded is not based upon exact figures, but the general opinion of those who have investigated the matter agrees that it is a diminishing quantity. With regard to the quantity imported, the Customs returns establish that, per head of population, there is a steady diminution going on, and the total imports for the year ended 30th Jane last, were S,OOO tons less than in 1898. This decline is most conspicuous in foreign cheese, which for the past year was 30,000 tons below the import* of 1900. This great reduction occurred almost altogether from the United States, which in UKiO sent us i) 2,183 tons, but in UHSi only 4,712 tons, whilst during tbe saau period Holland showed a. falling Oil to tb* extent of 3,622 tons. During the last five years the total quantity of colenial cheese imported has been 491,638 tout, against 399,421 tons during the previous lite years, which shows an annual average iuerease of 19,043 tons, though last year there was a decrease of 4,803 tons. i'iie highest import reached was in 1904, which waa 7,802 tons more than 1908. It is a curioue fact, that notwithstanding the great faiUag off in the import of American cheese Aurlag the last decade, the quantity of cheosa received from the countries in the New Weil* has termed on average above 80 per cent of our imported supplies. Canadian increases have, on the wnole, balanced the losses from the United States, although there has been a steady decrease from both these sources during the past two years. This recent reduction in supplies from across the Atlantic has given an opportunity for New Zealand to make up some of tbe deficiency, and In tbe past two yeare imports from that source have advanced from 5,870 tons to lU,Uia tone, and from the dry conditions existing at tho moment in pares of Canada, present appearance* are favourable for New Zealand to. moke further advances in the coming season. QUAI/ITT AND PRICES. Improvement in quality continues to be shown both iv Canada aud New Zealand cheese, and there is a general acknowledgment on our markets that both flavour and texture are better than In former years. A. very great advance In the prices of colonial cheese in the United Kingdom has taken place, and been maintained for the last three years over the previous three. The advance made on Canadian was 0/ per cwt, and' that on New Zealand showed an increase of 7/ per cwt. This rise has been largely brought about by the diminished quantity of Canadian that has reached .British markets during the past two years. THE FJTJTGRE. As regards the coming season, Messrs Weddel say that the uncertainty attaching to the supplies for the coming winter are much greater than usual. The high prices which have this summer ruled everywhere in the Northern Hemisphere, have resulted in very much less than the usual amount of butter going into cold store, and during the coming winter we shall be more dependent than ever on supplies from Australasia. The bad condition of trade in America, Canada, Europe, and the United States, will greatly diminish the purchasing power of the mass of consumers, and thus tend to reduce the demand, whilst the amount of fodder is so abundant in Bnrope I and America, that tbe herds for milking will most probably be larger than they were laet winter. What applies to butter, applies equally to cheese, and the definite rise In tbe value of all commodities, which has steadily gone on now for some years, must not be overlooked. Appearances at present are in favour of this movement having reached its limit, but there is no certainty on this point. So far as they -can judge at present, ■Messrs Weddel are of opinion that the average values of both butter and cheese during tbe coming season will be on a somewhat lower level than obtained in the past season.