BUTTER FOR CANADA

Dominion, Volume 31, Issue 105, 28 January 1938, Page 10

BUTTER FOR CANADA

Record Consignment From New Zealand RELIEVING A SERIOUS SHORTAGE Dominion Special Service. Auckland, January 27. A record consignment of 750 tons of New Zealand butter will be shipped to Canada by the steamer Surrey, which is due to leave Auckland at the end of next week| This is the second large carge which has been exported recently in an effort to relieve the serious shortage in Canada and at the current London quotation it will mean a return of ov<r £BO,OOO to the Dominion. Although it was expected by the local authorities that a further shipment of about 250 tons would be made to Canada later, no arrangements have yet been made by the Primary Products Marketing Department By the time the butter which is being taken by the Surrey reaches Canada late in March the spring production there will probably be well able to meet all requirements and no further substantial exports are expected to be made from New Zealand. The two shipments which have already been arranged will benefit the Dominion to the extent of approximately £120,000. While these large shipments will greatly Increase the total exports from New Zealand to Canada, the lucrative market which Canada offered several years ago appears to have been lost. For instance, in the 1928-29 season Shipments of New Zealand butter to Canada totalled about 16,000 tons, while in the following season the figure was raised to over 21,000 tons. At this period world wheat prices were soaring and dairy production was neglected addition. In Canada would sell her surplus stocks on the London market when prices were high in October and November.-Producers in Canada naturally became alarmed at the growing importations of butter and in 1930 the duty on New Zealand butter was raised from 1 cent per lb to 4 cents. The duties on Canadian milk and cream going into the United States also were increased. Both these factors resulted in greatly increasing the manufacture of butter in Canada and the total exported front New Ze:i land in 1930-31 fell away to only about 1800 tons. Thus after an absence of four years Canada rejoined the exporters of butter to London. Exports of Dominion butter to Canada since then have been as follows: —1932, 106 tons; 1933, 511 tons: 1934, 292 tons; 1935. 66 tons.

"Everything seems to have conspired against New Zealand in its effort to build up the export trade in butter to Canada,” said a prominent exporter. “If prices for wheat remain at their present level for some time farmers will probably give tin dairying. Even so it is doubtful whether New Zealand will ever regain the valuable market of several years ago.”