DAIRY INDUSTRY.

Hawera Star, Volume XLVIII, 7 August 1924, Page 4

DAIRY INDUSTRY.

CONTROL BOARD’S INQUIRIES. PROSPECTS OF BUSINESS. Reports from the Overseas Delegation of trie JN'ew Zealand Dairy Produce control xioara regaramg its investigations in America anti Canada have been received and circulated by ! the dlliee or tiie board m Wellington. The reports were despatched ricun ivew York on the ere ol tne ueparcure or the members of the delegation tor langiand. lne ueiegation comprises , .Messrs w . Grounds, chairman ol the. board, J. R. lhacker and W. Claude Motion.

The report regarding me eastern American States market for dairy produce states: “U’e find that .regarding quality .New Zealand butter is held in nigh estimation. By some houses it is considered to be slightly ihlenor to the best American, but it is significant that ours is rated hignest by tnose ivno nave used it most." The merchants stated tnat Argentine butter, could never compete with the lNew Zealand article.

Regarding the effect upon the market of recent importations, while' some merchants recounted the upon their market of New Zealand importations early m 1923, they had , little criticism to offer of the methods employed during last season. No decline ni'prices was occasioned by the annval in the market of New Zealand Gutter. The last arrived by the Wannana on April 2, when the market had been seriously declining for some weeks, which decline was more due to* the world movement than to the arrival of this shipment. The report says: “We think that shipments in quantities of 20,000 boxes, as during the last season, are not too much for this market to absorb, if intelligently handled. The present outlook indicates that prices will be at a fairly high level during next winter. Butter has been put into store at a cost of 42 cents. With storing costs added, this must make 48 cents to clear itself. At the present time considerably more butter is held in cold storage than at this time last year, Notwithstanding . this purchase for storage continues, the weather conditions indicating that American production may not be as great as anticipated.” As to the quality of the New Zealand butter, it is %tated: “New Zealand butter, at first, was considered to have an alfalfa flavour, which consumers did not altogether appreciate. The truth plainly is, that it was different from what they were accustomed to, and being different it was thought to be inferior. Its quality has not yet been fully ■ accredited by the official graders, who do not place it on the same level as their extras. But it is making its way into public favour, fo.r we heard, a few days ago, months after the last shipment from New Zealand* of an order sent to a merchant with the stipulation that it must- be New Zealand.” DISTRIBUTION METHODS. . 1 11 regard to the method of distribution in America and the views, of the merchants consulted, the delegation states: ‘‘AH were ; of the opinion that it would not be wise to endeavour to market it to the consumer os New Zealand produce. Each merchant has a proprietary interest in his own brand which he desires to popularise, but, making full allowance for this, we

think they are right in arguing that the quality should lie left to establish -tjfie position. There is a strong feeling, here against foreign goods. We need not now examine its origin, sufficient to record the fact. New Zealand seems so far away to most of them. Even Canada seems away beyond to them, although the dairy provinces of Canada nre much nearer than Minnesota, from which State much of the New York supply is drawn.” The report refers to difficulties that may be occasioned by the keen competition between different selling organisations, and it is stated that judgment has been suspended until the position in Britain has been fully examined. INTERVIEWS. Particulars are given of interviews with Ministers and officials, including Mr Wallis, Minister for Agriculture in the Federal Government, and Mr S. Sorenson, the Danish representative. “Each acknowledged a recognition of the important position New' Zealand occupies in the dairying world,’l says the report. “They aire watching us closely, their feelings being a blending of fear and wonder. ... Mr Wallis was courteous, but he greeted us as a storming party that was .threatening his citadel. . . He said ‘when anyone: mentions New Zealand we think of butter.’ Mr Sorenson indicated the same anxiety on the part of Denmark.” It is added that Mr. Sorenson, who is shortly to visit New Zealand, considers that Denmark will be .ready to co-oper-ate in any sound movement to stabilise prices.

The report adds: “If holders of butter 111 cold storage are to bo reimbursed, it must mean a market round 50 cents, next winter. This is what is generally anticipated by the trade. At this level New Zealand should be able to enter profitably. . . Under no circumstances should low grade be allowed to come to this market with a New Zealand brand upon it. The cheese market will need to be nursed with trifles, compared to the volume of the butter business, but we are convinced that a market for quantities of our high quality matured cheese is to be found, and at a remunerative puce.” INQUIRIES IN CANADA. The report also gives details of the results of the delegation’s inquiries in Canada. Speaking of the Ontario experiences. which concluded at Montreal, it is remarked: “We noticed that the opinions of the merchants varied from that of Mr Hodgson, who thought that the old method which had been so long practised was the best, to that of Mr A. A. Ayer, who was said to be the father of the trade in Montreal, who said he long ago recognised that there were two sellers—New Zealand and Canada, —and one buyer, and that unless some sensible arrangement was made between the sellers the buyer would determine the prioe.” It is stated that the representatives of the trade in both Ontario and desire to act in conjunction with New Zealand if a satisfactory working basis may be found. “But,” it is added, “they have first to find a basis upon which they can work together and consolidate their own affairs.”