Manawatu Spring Show

Evening Post, Volume CXVI, Issue 106, 1 November 1933, Page 15

Manawatu Spring Show

IMPORTING POSITION,

DAIRY INDUSTRY Quota Proposals POSITION REVIp^ED

A subject of present lively interest to the New Zealand farmer is the possible restriction of his dairy export, particularly cheese, so far as the: British market is concerned. It is unnecessary to emphasise how important butter and cheese production is to New Zealand and the proportion of revenue this Dominion secures from dairy produce. It is apparent, also, the effect a quota would have on New Zealand. At the same time, it has to be realised that this is a matter that cannot be regarded solely a$ a"onecountry problem; it has an international aspect. The purpose of this article is to examine the position from as wide an angle as possible, keeping in view at the same time New Zealand's particular relation to the rest of the world as a cheese-exporting country of some magnitude. . ■

■ It is well known that in recent months efforts have been made by certain sections in Britain with the object of inducing New Zealand to accept a quota upon the dairy produce she .; exports to the United Kingdom. Attention was first of all directed to the possibility.of applying ;■■•■■ a quota upon butter, but more recently the suggestions as far as butter are concerned have ~'. been dropped and efforts have, been concentrated upon restricting the export of cheese. ; These suggestions with regard.to quotas were . introduced some time subsequent to the Ottawa' .....Conference, in. spite of the fact that at the Conference it was agreed by Britain that ~ .Dominion dairy produce should not be restricted in volume for three years from the -.:. judate of the Conference, and that tariffs amounting to 15s per cwt on butter and 15 per cent, on -■ • 'cheese were imposed on the foreign-produced articles.-■ It Was1 also agreed at the Ottawa Conference that milk and cream imported from foreign countries into Britain should be subject , .to a 10 per cent, ad valorem tariff. • It was also i- -agreed that condensed unsweetened whole milk '/'should be subject to a tariff of 6s per cwt if •■from foreign sources; condensed . sweetened "whole milk 5s per cwt, in addition to any duty payable on sugar content; that condensed ;;,,',,,sweetened separated or skimmed milk should be subject to 10 per cent, ad valorem, or the sugar ° ''"duty (whichever was the greater).;^ thai , "•'■ unsweetened milk powder- should; be subject to ... .6s perjcwj; and/..that swejetened-:milk -powder• ■'.. .■; ; snould be subject to 10 per cent, ad valorem, " or the sugar duty (whichever was the greater^) ; f The Ottawa Agreement, by which these duties • were fixed, came into operation oh November 15, 1932, and continues to operate till November 15, 1935. During that, period no , ■'■'•dairy produce from New ; Zealand was to be "'.jsubiect to either tariff or quota. ■ '..'■■.::' Previous to the Ottawa Conference the ; :' '■ principal dairy produce importing countries in";. Europe other than Britain had with a view . stimulating home production in these countries '■'•'-vfirst of all tried the effect of raising their tariffs on imported dairy produce, but this did not materially reduce imports, and conse;quently later resorted to .the imposition oi ;,; : ;/quotas. This step was first taken by France, and "■■■"the principle was then adopted by Belgium and Germany. Of those countries, notably Germany " .had been a fairly extensive importer, especially ■ r of'butter from such countries as, the Baltic '-'-.', States and Denmark, and when the latter found \ •their outlay restricted :on the. Continent they.. naturally diverted the usual Continental sup- . V plies to Britain, the only important free market. The consequence was that' the British market was being supplied with excess butter. In the meanwhile, these exporting European countries "."had reduced their gross output of butter in ; keeping with the fall in price, but from a New '..Zealand point of view and a British point of , view it is particularly interesting; to note thai the total volume'of produce they were exporting ''to Britain.did not decrease; indeed,'in some j ■ '■' 'ihstjances it.actually increased by reason of the , diversion of the supply. ' ' ] IMPOSITION OF QUOTAS. . ' fyjs*anteresdng to investigate; the reasons j underpSig these countries in imposing quotas. ( ••■■■ France is primarily an agricultural country. , . She grows most of the agricultural produce she . consumes, yet her consumption of dairy produce in particular is not very high per head of popula- . tion.1 In the last twelve years, dairying as a | branch of the farming industry has yielded | greater profit than the growing of grain and , stock-raising throughout the world, especially ' in Europe and in New Zealand .and Australia. The ever growing export of .' butter .by producing countries led to .the 1 exploitation of all available markets. Among I these was France, and in accordance with her I -.protectionist policy France immediately pro- ■ tpntpA tlip hnmfi nroducerl. first'bV' a ■

of these considerations the fact remains •. that I these countries still export to Britain practically as much butter as they would, in the days pre- i vious to the suggestion of trade restrictions. It ] is interesting to. observe that the imposition of I the quotas ,by France and Germany raised the I price ..of butter to such a high level that it is - doubtful whether their object has not been de- ' feated by reason of decreased consumption. i Since the end of the war New Zealand has ] very materially increased her'^production and i export of dairyV produce both of butter and I cheese, though butter exports have increased at < a much greater rate than cheese exports. Since < 1928 Australian exports have increased at an even greater rate than New Zealand's exports. < That is particularly so for the years 1931 and i 1932. ' :-.' , w ' ' Within the past ,two or three years trie dairy ] pjbduce market has to some extent been I influenced by. the grain and the meat markets. '■'. Grain arid1 meat prices have _. . . ■_..■;

both been low, with the result that some countries, and parts of countries which previously were prominent grain and meat producers have tended to increase their supplies of, dairy produce. This applies to parts of the wheat. provinces of Canada and wneat : prddueing areas in Australia. With a firmingup.^in/the ,pricqs;.pf meat and grain,, and ji*ith the trade r agreements .rhade in that connedtiphV there is likely to be a return-by those countries to grain growing and. meat;-, production, for which they axe particularly suited. Alternatively, it is clear that if those sections io riot return to theijr.original grain growing there will be a halt in dairy development in those particular parts, because, they are not naturally adapted taiti. V. The export position of the dairy produce, countries between 1927 and 1931 is illuminating. Of the butterexporting countries, Danish exports ' have •< shown a substantial increase; Dutch exports, ,;yhave contracted; Russian exports. ■ have-; rremained fairly, stationary; Swedish, - s relatively stationary; Finnish' export supplies have increased, and the Polish supplies have increased to a greater extent

'than the . latter; ArgenfinaV-. •. exports have remained fairly constant; and Latvia and Estonia, have shown marked increases, in their exports, Though she is not an important exporting country, i South' Africa has tended to increase ' Canada has increased her production, though she is not a substantial exporter of butter, .. The Irish Free State has tended to decrease, her exports ■ since T930.

When dealing with the general importing position, it must be observed that within the past • twelve years there has been an increasing supply of butter on the international .market Up to 1930 all the principal importing countries, including,'in .these / Britain, Germany, Belgium, France, Switzerland, Canada* and the Dutch East Indies, imported additional amounts, .but the bulk of the increase was absorbed by Britain, and when quotas were introduced by the various

'.tariff (which was not effective in /restricting imports), and then by" the use of the quota. ."■ A somewhat similar state of affairs applies to Germany. Between 1923 and 1930 Germany imported approximately from 125,000 to 133,000 i"tons of .butter annually. ,In 1932. „by reason of her quota she reduced i 'her imports to 68,000 tons, with the !'- -ultimate object of increasing- her-in-eternal production and shutting ou[ : " "her supplies from other countries '. -Belgium is to some extent ■following1 .the same policy, and to. a lesser exI "tent is Switzerland. The outcome is that the increased production of dairy ■ produce of the exporting countries of Europe which has been materi'alis■•.■"'ing during the past twelve years' is now finding its-way to the British market. Admittedly, the fall in price ",;:J)f produce has made the European countries, materially reduce their; gross production. This policy has been adopted not by reason of difficulty in finding k market, but by reason of the incapacity .of these countries to produce as much butter as they are exporting at a price now obtaining in the market. In spite

THERE is no need to emphasise the importance of the Spring Show of the Manawatu and West Coast A. and P. Society, and what that Show means, not only to Palmerston North but to the whole of the fertile district of the Manawaiu. Although farmers are experiencing difficult times, and the A. and P. Society is likewise ■> undergoing an exacting period in its history, ail concerned have been unremitting in their efforts to make this Spring Show an unqualified success. ' ' Perhaps there has been no time comparable to the present when there was greater necessity for New Zealand maintaining the very high standard of her produce, and in so far as Shows are helpful in'this direction, the Manawalu Spring Show plays a very definite part. By breeders', and all others interested, this Show is regarded as being of paramount importance, and none can dispute the claim that the Manawatu Association ranks second to none in New Zealand. From a small beginning the Show has developed to its present imposing size, and its progress has been symbolic of the development of the district it so ably represents. However, that progress was no accident; it has been brought about only by the untiring efforts of publicspirited men who counted neither the time nor the labour in their endeavour to serve the community. Along with those whose interests lay in agricultural and pastoral matters, the commercial community did its share, all sections Working to one common goal — the advancement of their country, district and city. It must be with satisfaction that they can today realise the results of their labours:

importing 'countries the whole of the increase of cheese, but the gross volume is not so great began to find its way to Britain. Accordingly, as that imported by the United Kingdom and the gross British imports rose approximately Germany. The United Kingdom imports three from 292,000 tons in 1927 to approximately times as much cheese as Germany does. In 422,000 in 1932. Provision has to be made general, the gross export of cheese by all cheesewhen considering these figures for re-exports exporting countries, taken collectively, has from Britain. Up to 1931 there was a fairly tended to decrease during the last five years; healthy trade in re-exports from Britain^ but the import into Germany and the United States in 1932 re-exports from Britain diminished. For of America has decreased sl?ghtly, while the the year 1932 Britain was supplied with about 'import into France and Belgium has tended to 407,000 tons of imported butter, which she increase. The import of cheese into the United consumed. . Kingdom, however, has kept fairly stationary With respect to cheese, the^ position is entirely since 1925, being in the vicinity of 150,000 tons different from that pertaining ( to butter. The per annum. important cheese-exporting' countries of the No reference to the cheese trade would be world are New Zealand, Netherlands, Canada, complete unless the question of variety were Italy, and Switzerland, but New Zealand and taken into consideration. Cheese produced and the Netherlands easily pass the others in exports. exported by the Netherlands is quite different Till 1932 the Netherlands exported more cheese from that exported by New Zealand. The Dutch

than any other country, but in that year the leading, place was taken by New Zealand. Since 1927-31 the Dutch export of cheese has gradually fallen off, and in 1932 it was markedly less than in 1931. New Zealand, on the, other, hand, annually increased her exports between 1927 and 1930. In 1931 her export decreased, but in 1932 it again increased. In that year, however, the net export was slightly «less than for 1930. For some years the export of Canada's cheese has been decreasing, though in the last three years it has steadied to a fairly constant amount. Italy's export increased between 1927 and 1931, and decreased slightly in; 1932. The Swiss export has tended to decrease between 1927-32. Australia's export of cheese does not markedly affect the cheese trade. Dealing with importing countries, the principal cheese-importing countries are the United Kingdom and Germany. The United i States, France, and Belgium also import a fair quantity

export consists mainly of Edams and Goudas, while the New Zealand export is exclusively Cheddar. ■ BRITAIN'S IMPORT. When considering Britain's import butter and cheese trade it is of interest to note that the percentages of the commodities received from foreign and British countries differ widely.. In 1932 British countries supplied Britain-with 52 per cent, of the butter and cheese imported. The contribution by British countries has been consistently increasing within recent years. For the five years' average (1909-13) British countries supplied Britain with only 22.7 per cent, of her imported butter, but by the end of the war the percentage had risen to over 40. Since that time it has been gradually increasing, while similarly the gross volume of butter has been increasing. With respect to cheese, most of the greater

British farming Liquid Milk Trade CONVERTING SURPLUSES

Perhaps it is not always realised that Britain is an important farming country, and that dairying is an important branch of ihe industry. As an agricultural country Britain produces much more than New Zealand. In recent times there have been marked developments in- so far as Britain's liquid* milk trade is concerned, and as recently as last year a Commission investigated the position. It was realised that the industry was in a troublesome state because of Me disparity in the price of liquid milk and produce, and it was recognised that the crux of the problem was the surplus milk. With the establishment:of a Milk Producers 1 Board and the conversion of surpluses'into produce, some sections view with alarm the present large amount of imported produce. At the present time, attention in this direction is mainly directed to cheese.

part of the cheese imported by Britain is supplied by British countries. In 1932 British countries supplied 90 per cent, of the cheese imported into Britain. For the five years average (1909-13) the percentage supplied by British countries was 81.6, but since 1922 the percentage supplied by British countries has varied from approximately 85 to 90 per cent As pointed out previously, the gross import has kept fairly stationary. The volume imported by Britain from' New Zealand has increased, .but there has been a corresponding decrease in the volume imported from Canada. In considering the Home production .of butter and cheese it must be emphasised that there is no exact data with respect to the production of butter and cheese in Britain because of the absolute freedom of the production arid marketing. As near as can be estimated, the gross production of' butter' in Great Britain is 40,000 tons. It is believed that about .27,000 tons is placed on the market after providing for consumption on farms where the butter is mainly made. The Home production of cheese was estimated for the year 1930----31 to be 61,000 tons, which includes the amount used on farms. It is probable that only about 45,000 tons actually was sold on the market.

It is quite apparent from these figures that the Home production of butter does, not markedly affect the gross volume used by Britain, and the British consumer is consequently mainly dependent upon imported supplies. With respect to cheese, the British consumer depends to. a greater extent on British supply* yet the supply pro- • vided by British farmers is actually less than half that exported by New Zealand. British butter and British cheese differ from imported produce in that the 'former is made mostly on farms, and the, farm-made produce of high quality is preferred to imported produce. Indeed, the price paid for the home-made produce far exceeds the price paid for the imported produce, and bears no definite relationship to it. In other words, there is a demand 'for the, home produce as distinct from the imported produce, and consequently a reduction

6umption. The home-grown produce is also fed to stock, portion being used for fattening purposes for the provision of beef for the local market, and portion being used as dairy cattla feed for the production of milk also for tha local market. In addition, Britain maintains a very large sheep 'population, all her hill lands being used for sheep grazing, while, a considerable area of her arable land is also devoted to this purpose. The sheep products are mainly mutton and lamb. Wool is a much less important consideration to the British farmer than is the production of meat, but nevertheless the large sheep, population provides Britain with a considerable volume of wool. The sheep farming industry of Britain is to some extent coordinated with the growing of cereal crops on, soils which are not sufficiently fertile to grow cereals by themselves, and oh which sheep are required to maintain soil fertility. Some idea of the-extent*,-of British farming may be seen from the population of sheep and cattle, and in this connection it is interesting to compare the populations of these animals with populations in New Zealand. These figures, it may be noted, probably under-estimate British agricultural output, because they do not take account of the land.devoted to the growing of cereal crops, potatoes, sugar beet, and other crops. The total cattle population of Britain in 1931 was 7,273,890, which1 compares more than favourably with-.the-total-cattle population, in New Zealand in: 1931 of 4,080,525. The sheep population in Great Britain in the same year was 25,580,022, the sheep population of New Zealand being 29,792,516. If the figures for Ireland be included along with those of Britain, the number of. cattle is raised to 11,983,402, and the sheep figure to 29,948,658. The pig population in Great Britain in 1931 was 2,945,211, while in the same year the pig population,in New Zealand was 476,194. If tho number in Ireland be, added, the total i 3 4,407,783. It will be seen from the foregoing figures that as an agricultural country Britain really produces much more than New Zealand. Her areas under crop far excel those in New; Zealand. '-.... . . [ "DAIRYING IN BRITAIN. .' Dairying is a most important branch of farming in Britain. In some instances the farmer's income is largely dependent on returns from dairying, though probably to a lesser extent than'in New Zealand,, for the average British farmer, in addition to producing dairying produce, produces for sale a variable amount of what may be termed cash products, namely, potatoes,.>trheat, barley, and the like. Within , recent years the British farmer has added to his cash products sugar beet. At one time, all the sugar used in Britain was imported, arid produced either from sugar cane or from beets, the latter being mainly grown in Germany, France, and Belgium.. After the war experience, in which sugar could only be obtained in England with difficulty, the British Government put into operation a scheme supported by a subsidy to stimulate the local production of sugar, beet, with the consequence that quite a considerable area in Britain is now devoted to this crop. The principal dairying districts in Britain lie along the west, and include the following counties :-r-Chester, Cornwall, Cumberland, Derbyshire, Devon, Dorset, Lancashire, Leicestershire, Northumberland, Salop, Somerset, Stafford, Wiltshire, and Yorkshire. In Wales, they are Cardiganshire, Carmarthen, Flintshire, Glamorganshire, and Pembroke. In Scotland, the principal dairying counties are Wigtownshire, Dumfriesshire, Ayrshire, Renfrew, Lanarkshire, and Dumbartonshire. The foregoing are the most important milk-producing counties. In addition, districts' in the Vicinity of the larga cities also maintain.large dairy cow populations. Though these are; not essentially dairying

lin the price of imported produce brought about by over-supply does not markedly reduce the price of the home-made product, though it tends to recede slightly in keeping with general pricelevels. ( - ENGLISH FARMING. Contrary to common, belief, Britain is an important farming country. The extent of its farming operations is, however, hidden by the fact that the country has such a large population that the products of its farm lands are not sufficient to feed the population. Nevertheless, farming is an extremely. irriportant industry'to ■Britain. Unlike New Zealand farming, British farming is pre-eminently of. a mixed nature. British farms grow cereals—wheat, oats, barley, and other grains, in addition to roots, as well as grass and hay. With the markets at his doors for all classes of agricultural produce, the •British farmer sells wheat for milling, barley for brewing, potatoes and sugar for human con-

'U'lsujuia,:'uicy, uav.e. vie advantage pi the local; trade in milk. While the counties mentioned are pre-eminently; dairying counties, dairying is practised in practically all districts. Within recent years dairying has been increasingly practised in most districts which were previously devoted to the growing of arable crops -and the . raising of sheep, largely because the price of dairy produce, in particular milk, has not fallen so much as other dairy farm products. Statistics'; show interestingly the trend of the dairy cow population in Great Britain. The number of dairy cows increased from 2,974,172 in. 1922 to 3,251,020 in 1927. From 1927 to! 1930 there was a drop, but an increase again in 1931 to 3,244,220. In, England and Wales alone .{for which figures are available) marked increases in the dairy cow population, have taken place since 1931. In. 1931 the dairy cow population was 2,790,133, that being the highest figure ever recorded for dairy cattle in Britain. In 1932 the population was^ increased to 2,874,400,* and in 1933 there was a further-increase, to 3,155,600. Thg X .(Continued on Page 16.),