BUTTER AND CHEESE.

Auckland Star, Volume LII, Issue 190, 11 August 1921, Page 4

BUTTER AND CHEESE.

ENDING OF CONTROL.

FREE MARKET NEXT MONTH.

SHIPPING FREIGHTS DISCUSSED.

CBt Telegraph.—Special to "Star.")

WELLINGTON, this day.

11 Two important factors in the coming I'■ reason's dairy production were dealt 1 | with by representatives of North and '■' i South Inland factories here to-day. The 1 ! question of the conditions in the local c j marketing of butter when the subsidy 1 system, ends on August 31 was " fiillv discussed, and a policy was 1 settled whjch will be officially announced " | when details have been settled. It was a obvious to the producers' representatives s ; that, under existing financial conditions, '."'the Government was not likely to continue the subsidy, or even the equalisae tion scheme, and therefore t)r." whole " discussion is said to have proceeded on a sure assumption that there will be a V free market after thi-i month. The only s possibility of State interference or overS sight is in connection with the adjuste ment or return to distributors and retailers after butter leaves the factories. 9 In this connection the Board of Trade I will perform useful service. Viewing conditions from the point of view of 3 export parity it seems as if butter may rise a penny a pound locally in a free [ market, subject, however, to retailers , i being satisfied with the present margin 1 1 of profit. iron ' j The Putter Committee appointed to j act in conjunction with dairy exporters r interviewed ship owners' representatives , in the hope of securing a reduction of , freight during the coining season. I Cheese shipped outside the Imperial requisition lias had to bea.r treble pre-war , freisht. The matter was not finally , settled, but it seems clear that no rcduc- ' j tion is likely during the opening month.ji of the season, though shipowners are f ' prepared to reconsider the position in ; | January if running costs diminish. Owing ; to discouraging conditions for exporting ", | other lines of Xew Zealand products the dairy representatives were not so ; sure as in former seasons of a regular , I service to lift the outputs as manufac- , tured; they can only ensure regularity | by making a contract with the shipping i companies. This is under consideration , by a sub-committee, including producers - from both Islands. THE SEASON'S PROSPECTS. Drought conditions in the northern hemisphere causes Xew Zealand dairy producers to be optimistic about the coming season's returns. London reports . certainly promise high prices for early butter shipments: but if high prices prevail, Australian competition is likely to be keen, as the Commonwealth product, though not so uniformly high in ' quality as Xew Zealand's, will be in heavy supply. Fears of export Value >j equivalent to 1/6 per lb for butter for " j August-September shipment were experii enced a few weeks back in Victoria, and 1 . settlers in Adelaide a few days ago ' ; offered butter of the current season's I I make at 1/6 per lb f.o.b. Adelaide. This j action caused perturbation in the famous ' ' butter-producing districts of Victoria at ■ j the time, and as late as July 30 Mcl- • | bourne was importing butter at 1/7 to 1 I 1/8 for domestic consumption. The latest ■ j reports by mail from Queensland show : that winter production has exceeded all 1 records, that 9500 boxes a week are - | already available tor export after meeting all local requirements. New South i I Wales has experienced severe losses in I the north coast dairying districts from i floods, and Mr. Preseott, a well known ! authority, reports that it is expected the quantity of butter manufactured in the \ near future will be at a minimum. Victorian supplies were increasing, and by i j this time should be sufficient for local requirements, leaving an early surplus. ; Queensland is already exporting to Lon- ■ don, the Westmorland taking 7500 boxes. Thus New Zealand butter proi ducers will require to keep a close watch on Australian production and export, especially in view of the experience during requisition years, when butter was i sold at prices much below what Xew , Zealand producers considered it was t j worth at the time. Canada as a cheesecompetitor is still a far from certain quantity, owing to its drought conditions. In England and on the Continent, if the early summer has been exception- | ally dry. it is possible that production j may be extended beyond the usual ; period. The combined make of cheese in j England, Wales, and Scotland is excepj tionally heavy in normal times, and, j although exact statistics of output are j not available of the cheese passing j from the farm directly into the market ] place or to distributors, it is a factor | that the New Zealand producer cannot ; afford to ignore. The unfortunate drought conditions in the northern hemisphere have Undoubtedly enabled the Imperial Government to substantially reduce its losses made on purchases of New Zealand and Australian butter, and have also swept ' out of the way accumulations in stores that would have i menaced the future of Xew Zealand and j Australian new makes of butter had

northern production boon as heavy aa usual.