THE DAIRY MARKET.

Hawera Star, Volume XLVIII, 30 August 1924, Page 3

THE DAIRY MARKET.

WORLD’S OUTLOOK REVIEWED. IMPROVEMENT IN QUALITY IN N.Z. RUTTER, In a letter to the secretary of the New Zealand Producers’ Co-operative Marketing Association, Ltd., Mr G. D. Macfarlane, the association’s representative in Great Britain, comprehensively reviews the world’s dairv oreduce market. ‘Farmers generally,” states Mr Maclarlane, writing under date July 1, will now be speculating as to the piospects for their various products on this market during the coniine - seas°n - The increasing quantities of nearly all farm products coming to this market is giving the producers of all countries matter for serious thought, this being the one big market that they all look to to absorb their surplus "products. y “The production of butter in all countries is on the increase,” the writer continues, “and along with this increase in production a big effort is being made in' every eountrv to improve the quality. In a previous note I complained of the quality of our earlier arrivals of the oast season, due to the excessive use of neutraliser. I am pleased to state that the recent arrivals have shown a very marked impingement, and that the wholesale tiade have noted this with pleasure, and have expressed the hone that- the improvement will continue, and that we will not have a recurrence of the poor quality sent at the earlier stage of last season. . ' Ruddick, of the Dairv Commission of Canada, is on a visit to this country at the present moment, I attended a meeting while in London recently of the Home and Colonial Produce Exchange, when he addressed a. meeting of the members on Canadian dairy produce. He reviewed the progress of dairying in Canada, and gave statistics of the progress in production, m which he showed that butter production had increased enormously. \i heieas in 1902 Canadian exports were 36,000,0001 b of butter, in 1923 it was 160,000,00011). He expressed the opinion that butter production will continue to increase owing to the opening up of new country in the interior, where it was more convenient to collect cream oyer large areas than to establish factories for the manufacture of cheese. He outlined what the department were doing to imnrove the quality of the butter "by way" of grading. and hoped that in the not distant future as a result of their efforts that the quality would equal that of New Zealand and Denmark. He also stated that his view was that Canada had reached the limit of her production for cheese, and that in his ‘ opinion the. quantity of cheese manufactured would probably be less during the cominoyears.

I was able to inspect, wbile in London, the first arrivals of Siberian butter on this market. This was what is termed ‘fodder’ butter—that is, the cows were house fed with hay, cakes, etc. as -distinguished from grass fed. Fodder feeding has the effect of producing a very pale butter, and this particular lot approached nearer the colour of lard rather than the colour of butter as we have it in New Zealand. The quality was very good indeed, a big improvement on last season’s shipments. All-butter from Siberia is now being graded, and they have appointed graders, principally from Denmark, to do this work and also to endeavour to raise the standard of quality. These people are going to no end of trouble to improve their quality, and have appointed experts in this country to check the grading on arrival, and to compare the results at both ends. They have improved their packing immensely, and the cask could not be distinguished from the Danish package, arriving here in a clean and attractive condition. It is anticipated that when they get on to the grass butter the quality will greatly improve, and, as tlie quantity that is likely to arrive this year is a very substantial one, it will be interesting to watch its effect- on this market. Latvian, Esthonian, and Finnish butter,” continued Mr Macfarlane, “are also arriving in larger quantities, while Dutch and British do not show much increase, hut it is significant to note that in each case the big endeavour is to improve quality. This they hope to accomplish as "a result of the grading which each have instituted. The big difference between the price of New Zealand and Danish recently was difficult to explain to those who did not understand the circumstances. It was largely due to the lateness of the .spring in Northern Europe causing Germany to come on to the market to buy, owing to the shortness of supplies in that country as a result of the late spring. While Germany has not sufficiently organised her dairying so far, Denmark, as a result of her organisation, was able to take advantage of the position, and was able to exploit the German market as a result. This position is not likely to recur, and the reason that they were able to get so high prices for their butter was largely due to the competition of certain - areas for supplies, who used nothing but Danish butter, and it is these districts that we have concentrated on to break down the prejudice that exists against our butter. How this is to be done is a subject that will be discussed with the Control Board delegates. “The quality of the cheese generally this season has )>ecn up to its usual standard.” the writer proceeds. “Wo have had, however, the experience this season of seeing how easily the market is overloaded, and the unknown lad or ju this business is the quality of some cheese produced. The carryover of Home cheese from last season was very large, and much of this carryover had to be sold at very low prices as compared with farmers’ ideas. The production so far this season has been very heavy, and it is estimated that it will be in excess or last year. New Canadian cheese is now coming on to the market, and there is still a quantity of last year’s to be sold, and if, as Mr Ruddick has stated, Canada has reached the limit of production of cheese, then, apart from Canada, New Zealand and Home cheese will have the market largely to themselves. 1 am endeavouring to get statistics of the Home production and consumption in this country, and hope in a later article to he able to give you these as a guide to our own production. Meanwhile the market is fairly steady, with a good consumption demand, and with an improvement in trade that is anticipated as a result of international negotiations that are pending, the consumption will improve, and consequently prices, as well. “Fanners.’’ concludes Mr Maelarlane, “are to he congratulated upon the recovery of wool prices. The feeling here is that prices will he maintained for some time, hut that it would prove. unfort unfit o if they were rushed too high with a decline later. Howlever. the demand is in excess of the isupply, and it will be some time before this is overtaken. The demand for woollen goods in every country Is increasing, while the number of sheep is not keeping pace with the wool de-

maud. I util this is reached, sheepturining will l)e most remunerative, so long as land values do not rush up to an excessive price. If this should happen, it may mean the sheepfarmer going through the same experience that emerged as a result of the last slump.’l