DOMINION'S DAIRYING INDUSTRY

Evening Post, Volume LXXXVIII, Issue 30, 4 August 1914, Page 8

DOMINION'S DAIRYING INDUSTRY

SERIOUS INJURY NOT ANTICIPATED. MAY BE A FINANCIAL ADVANT-' AGE. (bt teleoraph— srncHL to the tost.) AUCKLAND, This Day. Though it has introduced new hazards, tho war is not regarded as likely to cause serious injury to the dairying industry of> the Dominion. Under certain circumstances, which were explained yesterday by Mr. 11. E. Pacey, general manager of the New Zealand Dairy Association, it may even bring financial advantage to,, the dairying interests. The shipment of tho new season's produce will not begin for five or six weeks. Owing to unfavourable marketing conditions, unusually large stocks of butter were held throughout the Dominion when the winter commenced, but shipments to America and South Africa have depleted the stocks, and the new reason will start in normal conditions so far as the past season's pioduce is concerned. "The position is one of the utmost gravity," Mr. Pacey remarked, "and it is impossible to say what adjustments may be needed even a few days hence. Meanwhile all the dairy companies in the Auckland province will, I believe, continue the manufacture of butter in the usual w^y. Since foodstuffs are generally dearer in war time, the deplorable conditions in Europe may prove an unexpected financial advantage to the primary producers in this Dominion. There is reason to hope that the trade routes will be sufficiently protected to ensure the safe delivery of our shipments and insurance against such extra risks as undoubtedly exist can be obtained by , paying a substantial premium. "Since England is the principal market for New Zealand produce in Europe, the effect of the war upon other countries which usually supply the English markets is of inteiest." Mr. Pacey continued. "It is practically certain that the supply of Siberian butter will be very seriously curtailed, and it is quite probable that supplies from other Euro pean countries will also be greatly reduced. This circumstance, and the special call for foodstuffs in war timo are grounds for assuming higher prices. On the other hand, there is the possibility that industrial disarrangement may restrict the purchasing power of consumers, and consequently counteract the tendency towards high prices. Much may _ happen before the first of the new shipments is made, about the middle of next month, and meanwhile good judgment suggests that the industrial and commercial systems should be maintained without panic, and doubtless we shall find our way through the trouble without disaster." The diversion of a largely increased proportion of New Zealand butter to Canada, as a result of the war, has been suggested by Mr. W. A. Beddoe, Trade Commissioner for Canada. He suggested ..hat as the supplies hitherto drawn by Western Canada from the United States will now be directed to Europe by the increasing prices already offering, 'British Columbia will require larger quantities from New Zealand. This view was not endorsed by Mr. Pacey. He remarked that the business with Canada last season was very important, and the existence " of established relations with the northern dominion is an important factor in the problem which the producers have now to meet. It is, however, quite improbable that Canada will be able to absorb more than a small proportion of the whole production.