BUTTER AND CHEESE.

Grey River Argus, 13 October 1922, Page 6

BUTTER AND CHEESE.

A COMPREHENSIVE REPORT. NEW ZEALAND v. DENMARK. LONDON, August 25. As always, the 28th annual review cm imported dairy produce issued by Messrs W. Weddel and Co., is a compilation of great value to Hip producer, because it gives straightforward facts, and it is fearless in its criticism. From the ‘‘Chronicle’s’’ point of view the report out to-day is looked upon as covering ]>erhaps the most interesting period in the recent history of the industry —the first complete year of free trading in butter and cheese since 1917 —though producers and traders have found it a period of acute anxiety and worry. During the year all previous figures were beaten by Australia and New Zealand, who sent 51,688 and 43,184 tons of butter respectively. The total imports of British-made butter reached 97,887 tons, out of a total of 188,781 tons from all sources. ‘‘lt is gratifying,” states the review, “to feel that the quantity of butter received from Empire sources now exceeds that produced by foreign countries, whereas before the war the proportions were 20 per cent, and 80 per cent, respectively.” The total importation of butter into the United Kingdom for the year was an increase of 48,568 tons as compared with the quantity received in 1920-21, but it is still much below the 1913-14 total of 213,434 tons. The total arrivals from British Overseas sources of 97,887 tons, however, was more than double the quantity, 42,726 tuns, imported in 1913-14. Bettering the Danes. “The usual high standard of quality of New Zealand butter,” writes Alessrs Weddel, “was fully maintained throughout the year. A large number of buyers in the North of England and the Midlands who, until the last few years, have confined their trade almost exclusively to Danish butter, are now working New Zealand more or

i are now worKing _xew /.eaianti inoiu ui less regularly, as experience has taught them that the quality in many cases is quite equal to the very finest Danish butter that arrives in this country; and the Danes are finding it increasingly difficult to keep their trade in face of the competition from New Zealaml butter. New Zealand producers have always keenly resented the wide discrepancy which usually exists between the prices realised for New Zealand and Danish butter. In January last, when the difference happened to be wider than usual, a number of importers met in London and launched a scheme for lessening the gap between the two prices by means of a propaganda to popularise New Zealand butter. When

the propaganda started, at the end of January, New Zealand butter was selling at 147/- per cwt, and Danish at 190/-; when it stopped, at the end of April, the quotation for both descriptions was 188/- per cwt. It cannot, of course, be claimed that this result was achieved solely by means of the propaganda, but there can be no doubt that New Zealand butter was very much in the public eye during those three months. It was an experiment in advertising that might well be followed up on a larger scale by New Zealand prod neers. ’ ’ Arrivals of butter from Denmark into Great Britain during the year totalled 67,313 tons, as compared with 47,58(1 tons in 1920-21, 34,591 tons in 1919-20, and 88,935 tons in 1913-14. This is still the most important source of supply of butter to the United Kingdom. In every respect the best New Zealand butter is intrinsically equal if not superior, to anything the Danes can produce; but where Denmark has the pull is in its being able to furnish a continuous supply of butter of uniform quality to a market close at hand, whereas New Zealand butter is apt to be irregular in supply, and its condition on arrival is not always so perfect as when it starts on its six weeks’ voyage to England.

Foreign Cheese Imports only 7 per cent. As regards cheese supplies, the British Empire continues to maintain the preponderating position gained during the war. Foreign imports are now only 7 per cent, of the total, ns compared with 20 pur cent, in 1913-14. The total arrivals of cheese for the year amounted to 138,430 tons, against 135,064 tons in 1920-21. Of this quantity New Zealand furnished 69,380 tons, Canada 53,674 tons, and Australia a record figure of 54 25 tons. Foreign sources were responsible for the unimposing total of 9863 tons. The average price last year was over 50 per cent, higher than in 1914, thereby indicating that the consumptive demand for this article is still in a very healthy condition. On the whole, market movements in cheese were less wild than in the case of butter. General Retrospect—“ Booms” or “Slumps”? Readers of the report will learn that during the period under review events of far-reaching importance followed upon each other with disconcerting swiftness; the markets responded with violent movements to unusual and diverse influences; and a feeling of nervousness prevailed, even when no apparent cause was discernible. The withdrawal of Government regulation seemed to leave traders with no standards by which to measure their operations and the result was that what ought to have, been ordinary fluctuations on the basis of actual supply and demand were transformed into “booms” or “slumps,” with, in some

cases, disastrous consequences. The final experiences of decontrol proved to be as exasperating as the prolonged trials of official regulation. The vast accumulations of stocks left in the hands of the Alinistry of Food after the tardy withdrawal of control, instead of being promptly disposed of at a time when the demand was good, and when “free” stocks were light, were utilised in an abortive attempt to force up the market, in order to reduce departmental losses; and, after hanging over the market like a cloud for many months, these stocks were finally “slaughtered ” at the most inopportune time of the year. Increased Empire Imports. Supplies of butter arriving showed further expansion and are rapidly regaining pre-war volume, despite the disappearance of several important sources of supply, such as Russia, Sweden and France. The deficiencies have been made up to some extent by large inure: ses in supplies from Australia and New Zealand; and the quantity of butter received from Empire sources now exceeds that produced by foreign countries, whereas before the war the proportions were 20 per cent, and 80 per cent, respectively. Whether or not that position can be maintained or improved depends upon the enthusiasm and energy of Australasian producers, helped by the growing efforts of Canadians and South Africans. Butter production in the Northern Hemisphere hr been greatly reduced in recent years, while the countries showing the greatest increase are those situated in the Southern Hemisphere. That is to say, our summer supplies of butter have shrunk considerably, while our winter supplies are getting heavier every year, j Unless this position is altered, cither by increased shipments from northern sources, or by sonic method being adopted of shipping regularly all the year round from the Antipodes, prices in the future must tend to reach a higher level in summer than in winter. An unusual feature of the last year’s trading was the exceptionally large quantity of butter re-exported to the Continent, the total for the 12 months amounting to 30,347 tons, as compared with 1372 tons in 1920-21. As regards cheese supplies, the British Empire continues to maintain the preponderating position gained during the war. Foreign imports are now only 7 per cent, of the total, as compared with 20 per cent, in 1913-14. Austra liau supplies, although heavier last year than in any previous year, are still relatively insignificant, but New Zealand seems to have definitely ousted Canada from its position as Britain’s principal cheese supplier. Extreme Price Movements. Fluctuations in prices were altogether abnormal. Every time the market rose, it rose too high, end every time it fell, it fell too low. The table of prices attached to the report reveals how wide and rapid and frequent these movements were, ami it must be apparent that a considerable element of luck must have characterised selling results. The range of prices was, if anything, more extreme then during the preceding 12 months, but the average selling price was lower than in any

year since 1916. With margarine of excellent quality, and in plentiful supply at pre-war prices, butter still looks relatively dear at GO to 70 per cent, over the .1914 level. Imports, of course, arc still considerably less than in 191314, and the population has increased in the meantime; but the experiences of the past year have proved pretty conclusively that as soon as butter prices rise beyond a certain limit the public demand switches over to margarine. Position in the Argentine. It is estimated that there are no fewer than 9,000,000 cows in the Argentine, as compared with only 1,000,000 in New Zealand; but whereas New Zealand exports 112,000 tons of dairy produce per annum, the maximum export, from the River Plate hitherto has not exceeded 20,000 tons in any season. The production of butter during the past 12 months although well up to the

average of recent years, was disappointing, inasmuch as the expected increase was cheeked by climatic conditions, and other factors militating in a minor degree against an increase in production were locusts and foot-and-mouth disease in the northern part of the republic. Nevertheless the total quantity of butter produced during the past 12 months is estimated at 27,000 tons, of which 16,821 tons reached this country. The imports in 1920-21 were 19,423 tons, in 1919-20 only 53G9 tons. The past year being the first year of free trading in Argentina butter, the wide and sudden fluctuations in prices at this end had an extremely disconcerting effect upon shippers, and this circumstance to a certain extent checked production. One of the greatest difficulties facing butter producers in the Argentine is the want, of relation between the rentals of the camps and the value of the cattle that occupy them, due to the enormous demand for land to accommodate the vast number of beef cattle at present being held up for W’ant of a profitable market. This, however, would appear to be a temporary disability; but it seems likely that the rents charged for land will have to be considerably reduced before the dairy and meat industries can be put upon a i proper footing. It was strongly felt by shippers that , the rate of freight charged upon butter from the Argentine, viz., Ijd per lb was excessively high, having regard to the short journey, the small space occupied by butter as compared with meat, and the rates charged by the Australasian lines. The River Plate shipping companies have agreed, recently to rebate l-8d per lb under cer«

tain conditions. Alessrs Weddel regar< the prospects for the coining year as favourable and give promise to a large increase in production with a steady improvement in the general level of quality of Argentine butter. Although the difficulties in the way of producing a really first-class article may be greater than in most countries, signs are not wanting that much greater attention is now being paid to this vital matter.