BUTTER TARIFF.

Press, Volume LXVIII, Issue 20612, 30 July 1932, Page 7

BUTTER TARIFF.

BRITISH FARMERS' REQUEST. FEAR OF DUMPING FROM THE CONTINENT. (t'KOII A CORKESrOKDKS-l'.; LONDON, June 23. r lhe announcement that three of the i leading British agricultural organise J tions-—tho National Farmers' Union, the British Dairy Farmers' Association, and the Central Chamber of Agriculture—have each applied to the Tarilf Advisory Committee lor a new duty on foreign butter comes as a complete surprise to those who imagined that the British farmers have lost all interest in butter production as a serious commercial factor. It also shows that the primary producers are not content to hare their urgent problems shelved on the plea of the imminence of the Ottawa Conference, but demand the same consideration as has been accorded to tho urgent problems of manufacturers, e.g., the recent review of tho silk duties. Thanks to the excellent relations existing between the representative of the New Zealand Dairy Produce Board in London and the various British agricultural organisations, it has been possible to make forceful representations to the latter regarding the etl'ect or- the Empire dairying industry of the import restrictions recently imposed by various European countries, namely, Germany, France, Holland, Belgium, and Switzerland. Chiefly as a consequence of the new German butter quotas and tariffs (which aim at the Qiastic reduction of supplies from external sources) it is almost certain that in the next few weeks there will be a substantial increase in the amount of butter sent by Denmark and other foreign dairy exporting countries to the British market. As supplies from the Southern Hemisphere show no sign of diminution, butter prices seem to be marked out for a further fall unless emergency defence measures are taken. Effect of Lower Prices. The 61'tuation is' summarised in a memorandum compiled by the Empire Dairy Council for the information of members of Parliament, which states, inter alia, that the probable effects of a further fall in butter prices will be fa) a general fall in the price of Home milk manufactures; (b) diversion of Canadian milk from butter manufacture to cheese manufacture ; (c) depression of cheese prices caused by the general tendency to change from butter to cheese, and (d) further reduction of the rapacity of the Dominions to buv British goods. Apparently the Home farmers have realised the cogency of these arguments. for the National Farmers' l r nion has demanded an nd valorem tariff of 88 1-3 per cent., and the British Dairy Farmers' Association and the Control Chamber of Agriculture, acting in concert, a specific duty of 20s n cwt. Far-.s«eing representatives of the dairying industry are not at all sure of the wisdom of the higher tariff, since they realise that the creation of a gap in supplies might result in a sudden upward surge in prices and jeopardise the prospects of a satisfactory permanent solution of tho tariff problem at Ottawa. On the other hand, it will bei disastrous alike to Homo and Dominion producers if there is any appreciable

further drop in prices in consequence of foreign dumping. Welcome to Butter Marking. The Butter Marking Order has been in operation for six days and its reception by the grocers of the country must have come a3 a shock both to doubters and to opponents of this long overdue reform. During the past few days the London agency of the New Zealand Dairy Produce Board has been completely inundated with applications by grocers for the marking discs issued by the Board. At the time of writing, 1.1,000 applications have been received, and it is safe to say that thousands more are in the post. There was some blunt speaking at a meeting of the Sunderland Grocers' Association. One member, describing the Marking, Order as "a piece of very fine constructive legislation," urged that grocers should ask for no quarter. "It is going to bring the unfair traders into line and put an end to the juggling in butter that was being carried on in certain quarters," he added. Another member raised a pertinent query as to what happens to the regular arrivals of 10,000 to 20,000 casks of Swedish butter? Where did it go and how was it sold? There were, he said, some very "fly" men in the butter business who had been "getting away with it" very successfully, and these would be scotched by the Marking Order. As for the blending firms, who were vociferous in denouncing the Order as unworkable and impracticable, some are taking whole-page advertisements in the trade Press in order to impress on the grocers that all the legal requirements of the Order will be complied with, that their butter will conform to the last globule to the description on the packet^

and that they would not toucli Kussian butter with a ninety-foot pole. So now everything in the garden's lovely, and we may leave it to our vigilant food inspectors to watch the wily lesser fry who are reputedly the real menace to the successful administration of the Order. Imports Still Heavy. The Board of Trade returns just issued show that during the months ended May 31st butter came into the Home market in undiminished quantities. Total imports amounted to 3.389,409cvvt, compared with 3,229,660 cwt in the corresponding period of 1931, while (O, sinister feature!) values continued to drop from £29,050,726 to £17,754,292). During May there was a sudden spurt in Danish butter exports to the United Kingdom, of nearly 40,000 cwt, representing an increase of 13.7 per cent', on May, 1931, and 37 per cent, on May, 1930. This tendency has been maintained during June, despite shrinking production in Denmark, and it is, therefore, apparent that prophecies regarding the diversion of butter to the United Kingdom as a result of the raising of import barriers on tlie Continent are being substantially justified. AUSTRALIAN PRODUCTION. lf\ROir OCT, OW.V COKHESI'ONDEJfI.) I SYDNEY, July 21. 'lho other day a New South Wales dairy expert said that the quality of New South Wales butter had so improved that it now held a leading position in Australia, and was a serious rival to New Zealand butter. The time was fast approaching, lie said, when the Dominion would no longer be able to claim any superiority. It was doubtful even now if New Zealand butter was one whit better than that produced in the State, His remarks were received with applause by the assembled dairy factory managers, but it signalised a definite advancement and showed that their advanced methods were bearing fruit. It is important for New Zealand to remember that the figures for the export of butter from Australia disclose a phenomenal increase in trade with Great Britain. The Commonwealth, during 1931, increased its butter exports to the United Kingdom 61 per cent. _ Reviewing the progress, and in the light of the prospects of a further increase in trade this season, a report issued by the Commonwealth Department of Commerce includes a summary of the outstanding features of the world's movements m butter, as apparent in an analysis of the supply and demand of the United Kingdom. Record quantities were imported into Great Britain each year from until in 1931 the supply totalled 8,071.1G7cwt. That was an increase of 18 per cent, on the figure for the previous year. imports into the United Kingdom for 1931 with the figures i'or the previous year, Denmark, with an increase of 6 per cent. maintained its position as the t'hief supplier, although accounting for only 31 per cent, ot the total, as against 3-1 per cent, for the previous 12 months. Imports from New Zealand were 24 per cent, greater and Australia showed the huge increase of 64 per cent. Russia more than doubied her shipments, and jumped from eighth to fourth place in tho list of suppliers. But the volume of trade with Russia was still hefow pre-war figures. Canada had a substantial share of the market, and supplies from South Africa showed an increase. • Empi re-produred butter comprised nearly 50 per ccnt„ of the total supplies in 1931, compared with 45 per cent, in 1930. It is understood that the average wheat yield in the returns furnished up to the end of June is approximately 25$ bushels to the acre. The returns are now coming in slowly, and there is still a fair acreage, according to the estimated sowings, to account for. It is not expected that much more than half of the unreturned acreage will be accounted for, the-balance having been fed off or not threshed. The gross yield should reach the million bushel mark, which, with the carryover and the ordinary and special importations, should provido quite 8j million bushels, sufficient for the year's needs.