MARKETING OF DAIRY PRODUCTS

Dominion, Volume 34, Issue 303, 19 September 1941, Page 6

MARKETING OF DAIRY PRODUCTS

Inquiries Overseas

MR. DUNCAN ADDRESSES CONFERENCE

An account of his recent visit to the United States of America with Mr. Langstone to inquire into the possibilities of shipment to that country and Canada of surplus meat and butter and his discussions with the United Kingdom Ministries of Food, Shipping and Economic Warfare was given to the Dominion dairy- conference in Wellington yesterday by the Director of Export Marketing, Mr. G. A. Duncan. The United States had been self-sup-porting in butter and cheese requirements by virtue of her colossal production of about 1,000,060 tons of butter and 400,000 tons of cheese. Imports of butter in 1940 were about 600 tons and of cheese other than Cheddar 26,000 tons. American butter consumption amounted to about 171 b. a head a year compared with the United Kingdom, 241 b, a head, Australia and Canada 301 b. a head and New Zealand 401 b. a’ head. Possibilities of development of a market for butter were overshadowed by shipping and tariff difficulties.

Endeavours were being made to maintain as far as possible regular outlets for butter to the United States and to Bermuda, Barbados, British Guiana, British Honduras, Bahamas and Jamaica. In present shipping conditions, it was impossible to push the sale of butter, notwithstanding that prices in the United States were nearing the point at which the present heavy duty could be absorbed. It was a possibility that more favourable arrangements might be made, thus opening up distinct opportunities for trade when shipping became available. The outlook was distinctly hopeful. Visit to Canada. Mr. Duncan said he had visited Canada to ascertain the prospects,of shipment of butter, assuming the necessary shipping could be made available. Summed up, the position concerning butter exports to the United States and to Canada was as follows: —(1) The development of any considerable market was dependent on the securing of additional refrigerated ships. (2) Meantime, efforts were being made to process butter into pure butter-fat, which could be carried as ordinary cargo, in an endeavour to market the New Zealand product in that form. (3) Experiments were being carried out to ascertain if butter could be successfully carted in “fruit ships” which maintained a chilled temperature.

Distribution of butter and cheese in the United Kingdom was made by the Ministry of Food through firsthand importers, wholesalers and retailers on the basis of registration of retailers with wholesalers and wholesalers with first-hand distributors. All table butters were sold as “National” butter, irrespective of brands. Post-War Market. Factors which would influence the post-war market in the United Kingdom for New Zealand butter and cheese were: —(1) The time of the ending of the war; (2) the purchasing power in the United Kingdom and the position in the United Kingdom after the war in regard to employment; (3) the United Kingdom export trade position and the extent to which she could regain her export trade in manufactured goods; (4) the United Kingdom food policy after the war and the position of her agriculture; (5) the extent of the supply of butter and cheese to devastated Europe; (6) retail prices for butter and margarine and the extent of the sales of butter which would be possible as varying price margins above the price of margarine; (7) the shipping situation; (8) the speed of European recovery after the war, particularly in respect of butter production; and (9) the method of post-war distribution. 1