FARMING & COMMERCIAL

Dominion, Volume 11, Issue 23, 22 October 1917, Page 8

FARMING & COMMERCIAL

NEWS AN!

DAIRY PRODUCE TRADE

WEDDEL & CO;'S REVIEW . In their review of the imported dairy produce trade tor tho your ended ; June .30,-Messrs. Weddol and Co., Ltd., point oiit that the British Government having in. the national interests withheld from publication tho imports of butter and cheese into tho United Kingdom after March 31 last, it is impossible to make patis/actory comparisons with tho figures .for Jhe previous year ending June 30. Tha Review shows tho.'imports for only tne nine months ended March 81, 1917, and Tor purposes of comparison the coriespo"h<!lng -figures for-tho ninn months ended March 31, 1916. The report reade: The' dairy produce trade in the year ended June 30 has suffered moio disappointments in the obtaining of supplies and in the arranging of-deliveries to customers than, ever before. There haa been difficulty in forecasting market movements, and a general artificiality in all the conditions of trading, such as no living man can remember. In November, IMB, p.ftor a considerable proportion of tho season's output had been sold by the factories to British traders, tJEio Imperinl Government arranged with the Government of New ■Zealand, practically on a commandeering basis, to purchase at 9Jd. per lb. f.o.b. all cheese mado in New Zealand for export in 1916-17; and' in December the British Government took over all cheese arriving from New Zealand and Australia, on the assumption that the arrangement made in these countries covered shipments aHoat as well ae unshipped outputs. -. On April 17, 1917, the British Government took possession on arrival of over 180,000 boxes of Australian butter and 6800 boxes from South Africa.

.The appointment on December 26, 1916, of a Food Controller with nower to fix maximum prices of various kinds of food, 6uch as bacon, butter, cheese, etc., marked, another stage in the disorganisation of, the trade. I'ho scheme of maximum prices fixed for.New Zeahnd and Australian cheese did not, work out satisfactorily, owing- to. Canadian and-American varieties being uncontrolled, although 'they formed about 70 per cent, of the supply. An order, was therefore . issued commandeering all Canadian and TJnited States cheese arriving in tho United Kingdom after May 29, 1917. Tho Government, not wishing to disturb unduly the fxieting methods of distribution, appointed the importers to act as their agents, allowing them a commission of 21 per cent, -wholesalers were allowed .to'take a profit of 5 per cent, and retailers 2d. per lb. •'■'." The Board of Trade- ceased publishing import figures after March 31, and the more recent statistics of the trade ■an therefore incomplete, being restricted ,in most cases to a comparison between .the nine months of July, 1916, to MaTch, 1917, inclusive, -with the-nine' months July, 1915, to March, 1916, inclusive. .'.-On that -basis the imports of butter ■during tho past season, as compared with tßose of tho previous season, show a deficiency of 37,079 tons, eqnal to 29.9 per cent., and there is every reason to belie-i that if the figures were available ror the complete year the" deficiency ' -would be •found to be 40,000 tons, or 49 per cent. Since 1914 the total annual imports from all , sources have fallen'from 200,000 ; t6ns to their present total of ' about 100,000 tons. ' ' : ' . Tho imports of cheese, on the other hand, show an increase of 11,665 tons, or 11.7 per cent., for the nine months, and if tho figures for the complete year weer available it is probable that the vate of increase would be found to have been maintained. As compared with pre-war imports those .for the .paet 12 months •show practically no change, being about 120,000 tons. The marked contrast thus Tevealed between the import statistics of butter and those of cheese since theoutbrenk of war, is accounted for by the fact that so raiicV butter i6[normally received from. foreign sources, which have proved more-or less unreliable, while the •great bulk of the'clieese. imported comes ■Iron) the more , dependable. British. Dominions. ...'.■';■

."■ How best to secure an increase in the production of- butter and - cheese within the United Kingdom such as would make v 4 independent of foreign supplies, especially in the case of butter,, calk for

IB NOTES.

the immediate attention of Parliament, as even -with the greatest encouragement u- i r 2H mre some years to attain this objeot. The urgency of the position is revealed by the fact (lint our population uunng the twenty years—lß9l-1911—in-oroesed by 19 per cent., whilo in the same, interval oiir milking herds have increased by only 7 per cent. The encouragement now offered to farmers ■ to increase their grain production will naturally tend to-accentuate the shortage of milk, butter, and cheese; the guaranteeing of full prices for grain must almost inevitably tend to raise the values of feeding crops and pasturage, and is likely to lead farmers- to dovote less rather than more attention to live stock.. Unless, therefore, methods can be devised to counteract this tendency, the position is likely to become worse instead of better in the near -future, so far ae the Homo supply of all kinds of dairy produce ie concerned.

Butter. Although there was again a fallingoft in imports from all sources amounting: to 37,079 tons in nine months, there was actually an increase of 11,644 ione from British' sources. The reduction of 51..23 tons in foreign imports is represented by 41,639 tons from Russia, 5893 tons from Donniark, 2524 tons from (109 tons from Norway, 6556 tons from France, and 1286 tons from Argentine, set off to same extent by increases of 179S tons from Holland and 5586 tona from "other countries." It was, course, impossible for Russia to ship to this country, but that was -not the position of Denmark, Holland, Norway, and Sweden; 'nevertheless, tho receipts from these countries have fallen from 106 3M tons in aggregate in 1913 to about 40 per cent, of that quantity, i.e., on the basis of 36,836 tons for the nine months ended June 30, 1917. Norway and Sweden, as well ae Russia, have dropped cut of the trade altogether. Prices rose gradually from the beginning of July, 1916, until the'middle of December,.with only an occasional hili; but a decline set in then which continued until the end of January. Later on, when the weather conditions were most unfavourable for production, and tho submarine menace seemed to threaten a suspension of Danish shipments, prices went up to the extent of 18s. to 20s. per cwt. within a week, Danish and New Zealand descriptions touching 2303., Australian 220.?., Argentine 2145., and South Afrioan 2125., the highest figures ever-re-corded.' From February 2 for six weeks onward there were no arrivals of Danish butter on our markets and prices were normal; then shipments were resumed and there followed a period of fairly steady markets' up to the last week in May,'when a rapid fall in prices took Place, succeeded by a r."ee during the iast two weeks of June. New Zealand butter more than maintained its high character, and, -when Danish was off the market, many retailers who for years had handled only Danish became buyers of New 'Zealand : brands, and, v/ue eo satisfied with (he quality that Danish importers must cxpeot to meet.mqre severe competition in tho future from tho bert brands shipped from the Dominion.

Except during an interval of three weeks—two weeks in November and cue in December—New Zealand butter has been. offered on tho London market throughout the whole year .under review, a position which hae naturally, tended to aid in tho maintenance.' of' its 'popularity. ,■'■.'■ There is a gflieral impression that Australian butter was not generally so ■good as in some previous years. There was moro. "fishiness" and not a little staleness, which may have resulted from the .delays which took place before *hinrr.ent. Many brands which had ,been graded as firsts ■ in" Queensland, - New South Wales, and Victoria had to be relegated to lower grades on their arrival here. Fortunately the complaints made by buyers were not very loud, as the result probably oft the high prices ruling:. In the interests of Australian producers, however, it is to be hoped that shipping delays in the coming season -will be much less marked than they have been recently. ■. '■■.'._. Three practically new sources of butter supply to,this country have been opened up during the past 12 months—South Africa, British India, and California; none of these is as yet of any great importance in comparison with the total consumption. The first-named country sent 731 tons , during the nine months ended March 81, 1917, and lilt tons during the three following months, but these ■latter are not ehown in the Board of Trade returns. The total from that 6ouxce was, therefore, 1845' tons during the 12 months ending June SO, 1917. Its value compared very favourably with those of butter from Australia, New Zealand, and Argentina, and when it is remembered that South African butter-makers have had no practical'experience to guide them in moating the varied requirements of this market as regards flavour, colour, saltness, and method of packing, it mnst be recognieed that their butter may ultimately and probably soon become a very effective competitor against tho older established favourites in this market. British Indian shipped experimentally to the United Kingdom 112 tons during the same period, and California sent 600 tons.

Margarine. The high prices of butter during the past three years have driven, large numbers of coiißumers to look for substitutes. They have had practically no choice but margarine, Trhich is always ready to hand, and mates the nearest approach to ffood-butler, both in'colour and flavour. The total'imports for tho nine months from July 1, 1916, to March 31. 1917, were about 110,000 tone, an increase of '20,000 tons, ns compared with the corresponding months a year earlier. But the margarine consumed in this country is riot all imported; a/ large quantity is niado in the Uniled Kingdom. Unfortunately, there are no Teliablo statistics as to tho oxa.ct quantity manufactured here, but it is estimated, on good authority, that fov tho twelve months ended June 30, 1017, this <imounred to approximately 1130,000 to 150,000 tons, which, with the lio.ooo imported in the 9 months, pins 35,000 tons (the proportion estimated as the imports for , April, May, and June, in 1917), bririß- the total yearly consumption of'margarine 'in this country to about 280,000 tons.. '■■■■■- Cheese. The imports of foreign cheese for Ibe nine months ending March 31, JfllT, wevo practically equal to those of the corresponding period in 1916, the only difference being a decrease'of 319 tons in 1917. From British overseas sources, which were virtually confined to Canada and New Zealand,. 11,934 tons in excess of Ibe eanie period in 191(i. wero received, but while tho Canadian supplies show an. increaso of 17,625 ions, those from. NewZealand wero reduced by 5645 tons. Tho total from both these Dominions amounted to 93,998 tons in the nine months, the largest import of cheeso in recent years, while foreign sources aggregated only 17,047 tons. The smallest import in recent years of twelve monlhs'occurred in 1912, when it dropped to only 116,838 tons, and (ho largest was in 1915, when 131,320 tons wero imported. It is estimated that for the twelve months ended June 30 the total imports probably anijuatrd to about 130,000 tons.

'I he difference Uiis year Iwt.vcen t\.n average price of Canadian and New Zealand oheoso calls [or somo comment, because in previous years tho differenco lias been only about 2s. per cwt. Tho cxplanlation is that from October to the end of May, 1917, while the market waa at its highest;, no Now Zealand cheese was availablo for sale, the entire imports having been commandoered by tho Government, while, on tho other hand, Canadian was selling freely up to 1765. per cwt. In consequence, tho average price for fcho latter description has reached the extraordinary figure of 1315., as against 101s. Ski. {or Now Zealand, which hae been, confined to quotations from .Inly to October, 1(116, only, during which period tho averago price of Canadian was 102s. per civt. On May 29 both descriptions wove in the hands of the Government. The difference in the average of these two descriptions for this year, explained above, is sufficient to affect tlio average for tho past five yeare to the eitont of about 19a. per cwt. The Imperial Government having se-

cufiJl New Zealand cheese at the opening of the season for the .Army, the usual importers have had' few opportunities of testing its quality, but the general impression is that there was no falling oft as compared with the preceding year. The Canadian variety lias fully main-, tained its high character for excellence.