REVIEW OF LAST SEASON

Evening Post, Issue 50, 27 August 1935, Page 12

REVIEW OF LAST SEASON

PRODUCERS' RETURNS DROP

"Looking back over the season just closed, it must be admitted that the lot of the^primary producer has been a very trying one," comment Joseph Nathan and Co., Ltd., in. a. review of the dairy markets. "Whilst it is generally believed the world is slowly recovering -from the depths of the recent depression, such recovery has not to any great extent been reflected in the returns for our primary produce. "At the commencement of last. season prices for butter were in the 70's, but up to the middle of October they had slipped back into the 60's, and recovery from that low point was very slow indeed. In the meantime, a great deal of the season's output had been disposed of. "Early in 1935 the market was given a fillip when America, after an absence of many years, came into the market for supplies to tide them over their winter period. Purchases were made from practically all producing countries, and New Zealand's share by way of direct shipments was slightly over 2000 tons. In addition to this quantity further New Zealand butter was also bought by America ex London stocks. With- the cessation of America's support the market receded from the 90's in February back to the 70's, but as we write (August 26) a more healthy tone has made its appearance and, since April When quoted at 76s per cwt, it is now 94s to 955, which is over 20s per cwt higher than at this time last year. The present high prices, however, will have little effect on the old season's returns, as the bulk of that season's production has already been sold. "As last season's returns are not yet complete, the actual average is not ascertainable but, estimating the unsold produce.at present market rates, an average of 80s per cwt for the season would appear to be somewhere near the mark. This is practically the same return as the 1933-34 season, but on account of the lower quantity produced, the actual return to the producer will be less than last season. "For the twelve months ending July 31, 1935, the total shipments from New Zealand to all countries were 129,704 tons, compared with 139*002 for the preceding period, a decrease of 9298 tons. The actual shipments to London were 7720 tons less, due to the decrease in output, and the diversion of 2018 tons sold to the American market. Of the total imports into the United Kingdom, the Empire supplied 265,036 tons against 202,995 tons from foreign, sources. For the preceding season the Empire's total was 263,811 tons, and the foreign 228.60G tons, showing that Empire countries not only' maintained but increased their proportion as against foreign. During the season much discussion of the restriction oh f.o.b. selling was manifest, and all sorts of arguments for and against gained prominence. For the season the amount of butter sold f.o.b. was 18 per cent, and cheese 18 per cent, also, against 15 per cent, and 7 per cent.' respectively for the preceding season. CHEESE WORSE THAN BUTTER. "Producers of cheese last season fared even, worse than those of butter. Prices generally were remarkably steady throughout the greater portion of the season, but unfortunately at low levels. At the commencement, of the season prices were 45s to 46s per cwt, and, although during October and early November the market reached 545, since then the market has been little above 44s- to 45s per cwt. It is only during the last week that any interest has been taken in the cheese market, and prices are showing a welcome advance with an upward tendency. "During the season much cheese was held for higher prices, and it was reported at one time that over 90,000 crates were so held. In view of this holding shipments from New, Zealand were retarded and no doubt this action is now having an effect on prices. Commenting on the cheese position our principals advise: 'Cheese is hampered by all the cheap English and Cheshire cheese that is available, and it is difficult to imbue the market with any sympathetic \ advance in consonance with the butter movement. It looks quite an unfair price for cheese, but, as we say, New Zealand cheese is hot today making a price a few shillings less than Canadian. It is rather on a standard of its own, and is clearly.affected by the tonnage of cheap cheese that is coming on to the market.' "Owing to there still being a fair amount of cheese to be shipped and sold it is difficult to estimate the season's average. It is expected, however, •not to be more than 45s to 46s per cwt,. which would be about 3s to ,4s per cwt below that of last season. This expected lower return coupled with the decrease of some 11,000 tons for the season places the cheese suppliers in an even worse position than butter. ■ "The prospects for the coining season look considerably brighter than for some time. It is difficult, however, to forecast what the coming season will bring forth. ■ A substantial rise in the price of primary products is well overdue, but the' chief disability in this respect would appear to be the continual changes of the political aspect to Europe. Some, countries have endeavoured to'make themselves selfsupporting in regard to dairy products."