N.Z. BUTTER.

Press, Volume LIV, Issue 16113, 18 January 1918, Page 9

N.Z. BUTTER.

COMPETITION WITH DANISH. (FROM OXTB OW>- COEJtESrOXDENT.) LONDON, November 30. Lord Strachey demanded, in the House of Lords a few days ago, an explanation of the reason why the price of English and foreign butter had been reduced to that of Irish butter. He j had seen it stated that the export ox Dutch butter to England had been stopped, as the price fixed by the British Food Controller left no profit to the Dutch producer. Lord Rhondda said the main reason for the shortage of butter was the restriction of supplies from Denmark and Holland. The-policy of fixing the price had to be governed by different considerations in the case of Home-made and imported butter. In the Britisn Isles the most important question was ■tho relation of butter-production to that of milk and cheese. It was absolutely'necessary to encourage the production of milk first. It took about —j gallons of milk to make one pound of butter, and only, one gallon to make a pound of cheese. Obviously, the production of milk, which cannot be imported fresh, must be put first. Consequently the maximum prices fixed for butter were less remunerative to the producer than those fixed for milk, though they allowed for a reasonable increase over the pre-war price. With regard to imported butter coming from European neutrals, it had been necessary to make price concessions so as to divert supplies from enemy countries. Purchases had been arranged with the Dominions, and in particular the whole of next year's production of butter, amounting to 30,000 tons, had been bought from Australia, and were in progress for securing the New Zealand output, which was estimated at 15,000 tons, while 8370 had been bought from the Argentine. It was impossible to buy at a similar price from Denmark and Holland because of the competition by Germany and the high prices which she was willing to pay. While the price of butter was left uncontrolled, there was a temptation to sell the various kinds whoso price was controlled as Danish, in order to obtain a very high price which then ruled, for that article. It had, therefore, been necessary to fix a maximum wholesale price for Danish in a parity of the prices for British and Irish-made, namely, 229s per cwt. Answering questions by Mr Yeo, Mr Clynes, M.P., said the exportable butter and cheese from Australia and New Zealand for the season beginning September Ist, 1917, and ending June 30th, 1918, had been purchased. Tho quantities were:—ls,ooo tons of butter from New Zealand, and- 30,000 tons from Australia; •60,000 tons of cheese from New Zealand, and 4000 tons from Australia. Negotiations for purchase were not completed, and the rates of freight were being revised. In any case it would not be desirable to give the figures as to cost.