DAIRY PRODUCE

Bay of Plenty Times, Volume LX, Issue 11093, 19 April 1933, Page 1

DAIRY PRODUCE

RESTRICTION QUESTION.

That a voluntary restriction of exports of butter will not nolve the difficulties facing the dairying Industry is the considered opinion expressed by Joseph Nathan and Co., Ltd.. In the! monthly market report. Remarking that the increasing supplies of butter received on the English market from practically a.ll producing countries have depressed the market beyond any figure ever thought of by the industry, Messrs Joseph Nathan and Co. state ; that "the plight of the dairy farmer is desperate, and a continuance of these low prices will be calamitous.”

"There is much to be paid both for and againot the quota system,” they slate, “but while we believe that those advocating a voluntary restriction of 'shipments have the interests of the industry at heart, we are of the opinion that this action would not solve the difficulty. “If restriction were made it is likely that buyers would immediately commence to • cover their requirements, with a resultant rise in rates; but when this trading ceased there would be the usual stagnation, and prices would slip hack, perhaps even lower than they are at present. Apart from this, we rhould still have a carry-over in New Zealand (involving additional storage and Interest charges) which would then meet the full competition of the northern hemisphere season. ■ • . • “A feature of the Danish marketing policy is to meet the market at all times and clear (supplies each week at best possible prices. In any case, It. ,la, dou.btful if the immediate introduction of the quota system, even supposing it does what its advocate's expect, would be of much benefit insofar as the present .season’s output is concerned. “Consumption in England has kept up wonderfully, well considering the troublous limbs the Mother Country is experiencing. Nevertheless, stocks at present are a little' higher than they were at the same time last year; but even so they should not be considered excessive and do not warrant the present range of values. "Latest reports from England advice tha.t the selling of Danish butter in pat-form ie now *well under way. This ,is a question that should receive the earnest consideration of ail factory directors. Contrary to the expressed views of opponents to patting, this, Danish venture haa not afifected New - Zealand pat Rales in any way, but rather has tended to Increase them. The solution of this apparent paradox is simple. "Previously, all shops had -an established sale of Danish butter from the cask, and buyers would not bother to push other butters which were hard to sell. - However, with the advent of Danish in pat form, shopiseepes found easy also to offer and sell to the consumer other butters lit pats side by side. ‘

“It has long'been realised that the present generally accepted methods of marketing New Zealand butter and cheese are not conducive to the producers obtaining theinaxlmum result of his labours: and we are still confident that the salvation of the industry lies in the development of the pat trade.” -