DAIRY PRODUCE SHIPMENTS

Evening Star, Issue 19774, 26 January 1928, Page 6

DAIRY PRODUCE SHIPMENTS

REGULATION UNNECESSARY 816 EXTENSION TO OUTSIDE TRADE [Special to the ' Star.’] WELLINGTON, January 26. The regulation of shipments of dairy produce was considered at the Dairy Board’s meeting, but, owing to the reduced outputs on account of the dry weather, it was decided that ho alteration be made in th 6 arrangements approved earlier in the season—that the produce be shipped as available. Whilst there was a feeling that, in view of the market dullness, some change might be desirable, a difficulty exists that contracts had been undertaken by dairy companies, especially in connection with cheese, as far forward as the end of the April shipment. If the dry weather continues _ there will bo a considerable shrinkage in the output. The satisfactory feature of the general position is the big extensions of business to countries outside Britain. Export butter to Canada was 86,000 boxes in 1926-27 season, but the figures will read 305,000 by the end of February. There is a. feeling that Canadian buyers somewhat overestimated their requirements, and as the butter stocks of Canada and the United States are high, further business is now restricted. The cheese position is regarded as sound, buyers operating in New Zealand on the basis of Bid to BJd a lb f.o.b. up to the end of the April shipment. The butter position is difficult to estimate, as export appears likely to diminish, while Australia, owing to 1 abundant rain, has overtaken last year’s export total. The tariff against New Zealand butter operates in June, and means an increase in local prices in the Commonwealth. This may cause heavier storage for the local market, and a corresponding reduction of tho Commonwealth export.