EASTERN MARKETS.

Auckland Star, Volume LXIV, Issue 206, 1 September 1933, Page 13

EASTERN MARKETS.

DAIRY EXPORT ATTEMPTS. PROSPECTS NOT ENCOURAGING. No encouragement to extend its trade to Far Eastern markets is derived by the Dairy Board after studying the subject. The board in its annual report states that the matter has had its careful attention. "A committee set up representative of all the export boards in conjunction with the Department of Industries and Commerce thoroughly examined the possibilities of further business, and the Department prepared a most comprehensive report. "Speaking generally, the report brought to light nothing that would justify the board's undertaking extra expenditure on developing Eastern markets. It seemed to be supposed by outside critics that New Zealand dairy produce was not known in the East. That is not the case, as during the past year shipments have been made to the East as under: — Butter. Cheese. Boxes. Pkgs. Shanghai and Hongkong .. 0334 7G3 Japan 848 46 Ceylon, India, Burma, Siain 2750 — Bast Indies, Malay States, Philippine Islands 4700 — "The problem is, can the quantities be increased? The answer is that they can be increased only if prices are reduced sufficiently to undercut Australian shippers, and to obtain the business that is going to them. The total volume of dairy produce going to the East is unlikely to be increased meantime to any great extent. Australian butter shipments to the East have been:—l 92728, 4783 tons; 1928-29, 4927; 1929-30, 5521; 1930-31, 5106; 1931-32, 5820. "In spite of extremely low prices in later years Australia's quantity has not increased and we can see no permanent increase in the total accruing to New Zealand apart from under-cutting of prices. This is neither profitable nor business-like. Australia by virtue of lower freight rates and the Paterson Plan can still beat us on a price basis. "The board is always willing to consider exploitation of likely markets where New Zealand dairy produce is not known. A steady trade is being done in butter to Panama Canal Zone and certain shipments have been made to Jamaica, and in this connection it is interesting to note that dairy producers in Jamaica are petitioning their Legislature urging that importaion of New Zea-

land butter be prohibited, as it is being retailed as low as 1/3. The producers of that island are evidently looking for much higher prices than New Zealand producers."