EXPORTS OF BUTTER

Dominion, Volume 25, Issue 278, 19 August 1932, Page 12

EXPORTS OF BUTTER

Outlook in Canada

SURVEY OF MARKET New Season’s Prospects Although butter prices are low in England, the market there is still more attractive than that in Canada, states the New Zealand Trade Commissioner in Ca’nada, Mr. J. W. Collins, in an authoritative survey of the butter market forwarded to the Department of Industries and Commerce and which has been studied by the Minister in charge of the department, Hon. R. Masters. On the other hand, Mr. Collins says, there would appear to be a better prospect for marketing butter from New Zealand during the next winter season—from December to April —than during the corresponding seasons of the past two years. “The price received for butter in wholesale markets in Canada continues to be very unremunerative,” says Mr. Collins. “For the best quality pack the current quotation is 161 cents per lb. There is a feeling of uncertainty and lack of confidence in future prospects. Production this mid-summer reason shows signs of falling and in the main producing province of Ontario dry weather conditions have been partly responsible for a general decline in deliveries. Primary Produce Holdings. “Viewed nationally, the dairy produce position has altered materially during the last 12 months. The following statement shows the holdings of butter and of cheese at May L 1931, and at the same date in 1932:—

“Production and stored supplies still enable the domestic demand for butter to be fully met and for a small measure of export trade to be undertaken. The total exports of butter from the port of Montreal from May 1 to June 25, 1932, amounted to 3520 boxes, as against 45,875 for the same period in 1931. The figures for cheese are 48,745 boxes in 1932 and 86,271 boxes in 1931. “While New Zealand has faced an unsatisfactory market in the United Kingdom during the last few months particularly, on June 23 the co-relative price for first-grade New Zealand (97/per cwt.) was 17.97 cents per lb, and Canadian 16 cents. Due regard has been paid to the difference in exchange in arriving at these quotations. It is demonstrated that, low as prices are in the United Kingdom, the market is still higher and more attractive there than the Canadan market Heavy Import Decline.

“For the 12 months ended May, 1932, Canada imported only 192,3741 b of butter at a value of 40,000 dollars, as against 11,562,5361 b of a value of 3,221,889 dollars in the same period of 1931. The trade in Canadian milk and cheese to the United States continues to fall rapidly.”

After quoting figures to illustrate this decline Mr. Collins adds: “While the United States markets for butter are being fully met by domestic supplies, prices are low—l 6 to 16} cents. Production has a tendency to fall. For cheese the market is quiet and in the Middle West consuming centres quotations are from 8} cents to 8| cents per lb. “Taking into consideration the falling off in production, the low stocks in storage in Canada and the disappointing returns received for butterfat, combined with the fact that considerable sales of dairy cows have been made to United States farmers, there would Appear to be a better prospect for marketing butter from New Zealand during the next winter season—from December to April—than during the same season for the past two years. The months of July and August in Canada are invariably hot and dry, and present indications point to the fact that it might be difficult, for this and for other reasons stated, markedly to increase production or even to maintain it up t0'1931 standards.”

May 1, May 1, 1931. 1932. lb. lb. Butter — Creamery .. 5,126,002 2,809,099 Dairy 138,164 32,108 Cheese .. .. 10.379,132 5,932,462 May 1. 5-yr. average. Butter— Creamery .. 4,180,654 •»' Dairy 130,243 Cheese .. .. 9,936,377