BUTTER OUTLOOK.

Evening Star, Issue 18239, 2 April 1923, Page 6

BUTTER OUTLOOK.

A rossiiiipm which has long been quietly debated by those interested in the New Zealand dairy produce export trade is mentioned in the latest fortnightly commercial summary from London. It is that of Siberia onco again being a competitor in the butter trade. Not much information filters through from Asiatic Russia, and nows from European. Russia is generally regarded as unreliable liecause so much of it is palpably propagandist, The general impression seems to be that Russia under the- Soviet Government has reached a condition so nearly moribund that she is making tentative advances towards a revival of the capitalist system which she so ruthlessly annihilated. To-day’s cable states that the Soviet Government is “very keen” on reinstating the Siberian butter exporttrade, It will be no easy matter. In the first place the Siberian dairy herds have dwindled so greatly that there arc said to bo now only two cows where once five grazed. The use of machinery in big scale dairy production has become its most arresting feature, and without its aid Siberia would malm but a negligible re-entry into the world's markets. Her old machinery lias necessarily got out of date during the country’s seven-year stagnation in a buck-water well out of the current of the world’s progress. The probability is that much of the machinery was destroyed in the insane turmoil of the revolution, and that much of what remains is fit for the scrap-heap from disuse and neglect. The Siberian factories propose to seek financial assistance, for making now machinery purchases. If they attempt this without using the Soviet Government as an intermediary their prospects would be thereby improved. At a guess they may not bo allowed to dq so. Control of industry is a cardinal principle of the Soviet regime, and it is unlikely that the Russian autocracy would malm a stir towards the revival of the dairying industry without making sure that every detail of it was under a very linn governmental grip. But, as a prominent English banker and economist remarked lately, “no recovery of onr trade in that quarter (Russia) can ho looked for so long as no confidence whatever can he placed in the good faith of tho governing class. It is not likely that credit will be extended to those who, to judge from their past actions, will not hesitate to confiscate if they sco a momentary advantage to themselves in so doing,” However, if Russia is in a. position to export produce,—preliminary butter shipments to London in July'and August are spoken of-v-therc will be gome tangible security against the necessary credits for the purchase of machinery.

Recent developments in the London market .suggest that many countries in Europe have been aiming at. increased dairying production, and that results are now becoming apparent as the spring advances. With European conditions as chaotic as they are, the purchasing power of the masses on the Continent cannot ha enough to run much to such a luxury ns butter. Consequently supplies are being concentrated on the Loudon market. If the British agricultural laborers’ strike develops, they may be welcome temporarily; but Britain’s absorptive capacity, already impaired by her own industrial depression, may be overtaxed, especially should Siberia “ come back ” as a butter producer. All things considered, the New Zealand dairyman i§ not likely to have in the near future such a clear run as he has lately enjoyed.