BUTTER FOR AMERICA.

Evening Star, Issue 18158, 26 December 1922, Page 6

BUTTER FOR AMERICA.

“The discovery of America, gave ns potatoes, tomatoes, Indian, corn, chocolate, and a dozen other things, and wo have ransacked tho earth for the dainties of other climes.’’ Thus wrote a contributor to tho Philadelphia ‘ Farm Journal)’ a few weeks ago. 'l’his ransacking process has just touched l New Zealand in respect of a commodity on which we justly prido our--selves—viz., butter. Tho steamer Tekoa. is now loading in Auckland 120,000 boxes of butter for New York, and further shipments aro to bo made in January and February. It appears that tho United States has not stored enough of her last season’s butter production to provide for tho winter’s consumption, and a big New York distributing firm has invested 1 half a million sterling in tho purchase of New Zealand butter, expecting to resell it at prices which will give a profit in tho region of 25 per cent. This diversion of tho normal movement of our dairy produce to Now York instead of London is suro to bo watched by our producers with keen interest. It may be remembered that some time ago America unexpectedly took cargoes of our frozen meat, ostensibly for her own consumption; but its ultimate destination proved to be Britain, its reshipment and unloading on that market having an unfavorable effect on tiro prices obtain able for our own direct shipments arriving at about the same time. The reasons given for the present butter transaction, however, make it appear as being caused by a genuine want. It may mean tho beginning of a permanent export trade, tho finding of a now outlet for a staple commodity whose production is increasing rapidly in volume. Since the beginning of tbc export season prices for New Zealand and Australian, butter in London have trended downwards from extremely remunerative levels; but they appear now to have reached bottom-, and the possibility of an upward movement setting in is already being considered. The British public has shown such appreciation of New Zealand butter at Is 8d per lb that shipments ore swiftly absorbed. Toolcy street announces that in bringing producer and consumer together at present prices it has been forfeiting its middleman’s profit, and that either the retail price must go up or tho wholesale price come down. Tho figure mentioned for the latter reduction is 10s per cwfc. This would not be relished by New Zear land producers. They would prefer to see the British consumer charged a rather higher price, oven if stocks did move off more slowly. Tho fact cjf America’s appearance in tliis market as a buyer in competition with Tooley street ought to strengthen tho position of our producers in resisting acceptance- of lower prices.