HIGH EXCHANGE

Dominion, Volume 27, Issue 16, 13 October 1933, Page 8

HIGH EXCHANGE

Effect on Dairy Produce Exports

BENEFIT TO FARMERS In Parliament and elsewhere, writes a correspondent, “Butterfat,” who is a well-known authority in the dairy produce export trade, it has been said that the high exchange rate has not benefited the average dairy-farmer. The statement of the Dairy Board that “in the meantime the increase in the exchange rate] has been of considerable benefit in enabling the dairy farmer to carry on,” has been challenged in several quarters, but, writes “Butterfat,” an examination of the dairy produce export figures definitely goes to show that the Dairy Board’s survey of the position in its annual report is substantially accurate. The correspondent, in assessing the effect of the exchange premium on exported dairy produce, has compiled the following figures covering shipments from January 20, 1933 (the date on which the exchange rate was raised from 10 per cent, to 25 per cent.) to July 31, 1933:—

In the following table are shown (1) the amount of exchange premium on the above estimated values represented by the increase of 15 per cent., and (2) the total exchange premium represented by the 25 per cent, rate:— Extra 15 p.c. 25 p.c. Exchange Exchange Equals Equals

The estimated shipments and value of butter and cheese for the twelve months from January 20, 1933, to January 19, 1934, are given as follow:— Estimated f.o.b. value. Tons. £ Butter .... 126.072 10,085,760 Cheese .... 100,000 4,800,000 On the above basis the amount ot exchange premium represented by the increase of 15 per cent., and the total represented by the 25 per cent, exchange rate are shown as follow’:— Extra 15 p.c. 25 p.c. Exchange Exchange

In the dairying world, “Butterfat” adds, there are approximately 65.000 farmers, and it is believed in every case they have received into their own hands the benefit of the increased exchange, equal to approximately lid. per lb. butterfat. All payments for butterfat are made to the factories, and they, in turn, pay out to individual farmers, or suppliers and shareholders.

Estimated f.o.b. value. Tons. £ Butter .. . 66,801 5,344.080 Cheese .. . 57,580 2,763,840

Butter . Cheese . £ ... 801,612 ... 414,576 £ 1,336,020 690,960 £1,216,188 £2,026.980

Butter ... Cheese Equals £ ' ... 1,512,864 ... 720,000 Equals £ 2.521,440 1,200,000 Total . ... £2,232,864£3,721,440