SURPLUS BUTTER

Dominion, Volume 14, Issue 249, 15 July 1921, Page 6

SURPLUS BUTTER

EXPORT TO BE PERMITTED THE QUESTION OF PRICE AN INTERESTING DEVELOPMENT The manufacture of butter iu New Zealand since March 31, when tho Imperial contract terminated, has been substantially- larger than was anticipated, and consequently a quantity has become available for export. The conditions under which export will be permitted were announced yesterday. It is very unusual for the output of butter from tho New Zealand factories to equal the consumption during the winter months. The dairying districts, however, have been experiencing a particularly mild winter this year, and a further factor in maintaining production at an unexpectedly high level has been the manufacture of butter in factories that turned from cheese to butter in February and M'axch, when the prices ruling for butter were better than for cheese. Many factories with dual plants have continued to make butter in preference to cheese since that The announcement made yesterday by the Controller is that permission will be granted by the Customs Depnitnient lor tho export of whey butter, milled butter, and dairy butter, and of a maxim tun quantity of 30,000 boxes of creamery butter. There will be no restriction on the export of whey, milled, and dairy butter, beyond formal application to the Collector of Customs at the port of shipment. These classifications cover the second grade butter, which is not required for local consumption, in view of the fact that there is an adequate supply of creamery butter. Applications for permission to export creamery butter will require to be made to the Comptroller of Customs at Wellington, in order that n cheek may be kept on the total quan titv exported. The accumulation of a surplus of butter in New Zealand, despite the fact that up to March 31 every available pound was sold to the Imperial Government, has created a rather difficult position for the factories and dairy associations. The arrangement under which the New Zealand- public is being supplied with butter at the present time gives a return of about 2s. 1H- P or P ound at 4116 f Hct -°ry door. The Government pays a subsidy of 3d. per pound in order that tho maximum retail price for cash shall bo 2s. 3d. per pound. A. good deal of butter, as a matter of fact, is being retailed at less than 2s. 3d- The London wholesale price which was increased a few days ago, stands at about Is. llid. per pound, and this price represents about Is. 9d. in New Zealand. It appears, therefore, that butter exported at the present time will bring a lower price than butter sold for local consumption. The Government. of course, will not pay any subsidy on butter sold for export, and it will leave to the dairy interests the task of deciding what butter must bo sent abroad.