COMMERCIAL

Press, Volume LXIX, Issue 20978, 5 October 1933, Page 15

COMMERCIAL

(CONTINUED.) THE BUTTER' MARKET WEDDEL AND COMPANY'S REVIEW YEAR OF LOW PRICES (jbom oua own cohesspondent.) LONDON, Septembei' 2. Trading in dairy produce has been for many months past nothing more or less than a scramble to "sell the heavily augmented surplus production of the exporting countries in face of 1 artificially created barriers in the consuming markets of Europe. For dairy farmers in every producing country last year was undoubtedly the worst in their experience, states W. Weddel and Company, in its thirtyninth annual review of the imported dairy produce trade, which covers the year ended June 30 last. In spite of a tariff of 10 per cent, (later increased to 15s per cwt), the imports of foreign butter were greater than ever, not so much because of increased production, but chiefly because the quotas and prohibitive tariffs against imports into Germany and other European countries diverted larger quantities to this market. Empire supplies, enjoying not only a tariff preference, but also the benefit of depreciated exchange, and in some cases, export bounties, showed a rate of expansion only equalled by that of the previous year.

Prices fell to almost unbelievable levels. There was a short oeriod in April this year when New Zealand's finest salted butter was obtainable in large quantities at 64s per cwt, and New Zealand white cheese at 38s per cwt. In the retail shops some of the finest butter the world produces could be bought at 8d and 9d per pound, and cheese at sd. The course of market values was almost continuously downward, and the decline was frequently accelerated and intensified by panic selling on the part of certain importers. The average of butter prices for the year were: Danish 108s Bd, New Zealand 89s Id, Australian 85s 9d, Argentina (unsalted) 81s, Russian 83s 4d per cwt. Cheese averages were: Canadian 66s Bd, New Zealand 54s sd, Australian 50s 6d, South African 53s Id. These averages represent a drop of IS per cent, in butter and 10 per cent, in cheese as compared with the preceding year. Perhaps the most astonishing feature of the New Zealand season last year was the exceptionally heavy output during the autumn months, when usually production would be expected to fall away. \ Supplies from all Sources. Butter importations from all sources for the 12 months amounted to 443,253 tons, as compared with 412,863 tons in 1931-32, an increase of 30,390 tons, or 7.4 per cent. Supplies from within the British Empire at 237,074 tons showed an increase of 28,259 tons and represented 53.5 per cent, of the total imports. Australian shipments totalled 97,447 tons, or 20 per cent, heavier than the preceding year's arrivals, and four times as heavy as the 1923-24 total. From New Zealand, 118,604 tons were received, as compared with 103, tons in 1931-32, an increase of 14.6' per cent. Reduced quantities were received from Canada and South Africa, the first because of diversion, and the second because of drought. Irish supplies showed no change, in spite of a special tariff commencing at 20 per cent, m July, 1932, and rising to 40 per cent. . Although* the totals of individual foreign countries showed considerable variation from the preceding year s figures, the total quantity of foreign butter received, amounting to 206.179 tons was only 2131 tons more than the total imported in 1931-32. Denmark again shipped increased quantities to this market, and there was a surprising increase of 4309 tons, or 137 per cent, in Dutch supplies, the whole of the extra quantity having been shipped in the last two months. Most of the other foreign sources,

however, cut down their contributions. The Argentine total of 13,581 tons was the smallest for many years. There was a drop of 967 tons from Norway and Sweden, 1337 tons from Russia, and 3037 tons from Finland. ! The total under "other countries," chiefly Latvia and Esthonia, amounted to 16 751 tons, or 3131 tons more than in 1931-32. Cheese —New Zealand's Improved Quality. The two main sources of Great Britain's cheese supplies, New Zealand and Canada, have been developing in recent years in opposite directions. From 61.863 tons in 1925-26 Canadian shipments have fallen away to 35,646 tons in 1932-33. On the other hand, arrivals from New Zealand in the same period have increased from 66,953 tons to 100,677 tons. On a smal-

ler scale, Australia and South Africa have been developing the production of cheese for export, and their totals show some increase, but all the usual Continental sources, under the triple handicap of low prices, tariff, and adverse exchange, were obliged to cut down their exports to this country. Indeed it is astonishing that they were able, under such unprofitable conditions, to send as much as 13,027 tons, or a reduction of only 4643 tons from the preceding year's total. Imports of cheese from all sources amounted to 155,636 tons, against 144,667 tons in ID3I-32, an increase of 10,969 tons or 7.5 per cent. Out of last year's total 142,609 tons, or 91 per cent, came from Empire sources. Messrs Weddel have pleasure in j stating that .there was a distinct improvement in the quality of New Zealand cheese during the year under review. Strong efforts are being made throughout the Dominion to overcome the prejudice against New Zealand cheese, which was brought about through the lowering of the standard of quality some years ago, and it is i confidently expected that within a very short space of time its quality will be restored to the high level 1 which was maintained before the prac--1 tice of "standardisation" was intro- " duced. Australian Batter Better Known. Butter production in Australia has made amazing progress in the last few years, partly due to a succession of good seasons, but chiefly to the fact that in recent years dairy produce farming has proved to be the most profitable branch of agriculture. With a bounty of 3d per lb on all butter exported from Australia, and a difference in the exchange between the producing country and the consuming market of 25 per cent., and also taking into account the fact that Empire butter enjoys a preference of 15s per cwt over foreign butter in the British market, it is quite obvious that even at the low prices at which butter has been sold during the last 12 months dairy farming in Australia must still be profitable. The total export of butter from Australia during last year amounted to 100,758 tons, compared with 91,138 tons in the previous year. Cheese exports were 5411 tons, as compared with 3265 tons last year. To destinations other than the United Kingdgom, 7419 tons I butter and 384 tons cheese were shipped as compared with 7085 tons of butter and 291 tons cheese in the previous year.

Denmark—Production Declining. The total quantity of Danish butter exported during the year was 153,310 tons, of which 132,169 tons came to Great Britain, 11,657 tons to Germany, and the remainder to France, Belgium, and other countries. The export figures for 1931-32 were 167,560 tons, and for 1930-31 170,000 ton,?. The actual production of butter' in. Derimark is therefore declining, although the imports- of Danish butter into this country are increasing, the explanation being that other countries are taking smaller quantities of Danish butter. The reasons given for the decline in production in Denmark are heavier home consumption and a smaller yield of milk on account of reduced imports of concentrated feeding stuffs.