DAIRY PRODUCE

Hawera Star, Volume XLVIII, 16 January 1925, Page 4

DAIRY PRODUCE

THE FALL IN BUTTER. VIEWS OF REPRESENTATIVE MEN. A review of the z-ecords of past seasons shows that a fall in price realised at Home for our butter has been the experience each year about this time of the season. Up till Christmas, and perhaps a little later, prices have been good, and then has come the fall, more or less rapidly and more or less severe.

This season has been no exception. Recent cables have shown that very heavy shipments were expected to land this month,, and this naturally made buyers hold off and take only what was sufficient for immediate requirements. The inevitable corollary to such a procedure was a lowering of price to endeavour to secure sales. In order to secure the opinion of men who are closely connected with the industry, and who therefore closely follow the trend of prices, a Star representative took the opportunity of securing the views of thx-ee men who had special opportunities of giving an opinion on the question. One who has the advantage of securing regular reports said he was not surprised at the fall in prices. As long ago as November he told factories in which he was interested that they would be well advised not to go into bijtter at that time, for the good reason in New Zealand made a big increase in output certain. •In addition he was advised that prospects were for large additions to the exports from Australia and the other butter-producing countries, and the bulk of these he knew would reach the Old Country just when the biggest supplies would be reaching there from this Dominion. He therefore strongly urged cheese-making at that time. Some had followed this advice and had scored. The consistent fall in butter had shown one short variation when a slight rise was recorded. This was probably due to a temporary clearing of supplies, and a consequent hardening of demand. If consignees holding stocks endeavoured to bold offo quitting,-in the hopes of a rise, the position as further shipments arrived would only lie worse. He said, in conclusion, lie would not be surprised to see even lower prices realised, though naturally he hoped this would not be the case.

The secretary of one of the largest dairy companies remarked that. the imports into Britain would probably be twice as large as last year for January, and this naturally led to the present position. Iti ocurred each year to a greater or less extent. Though there had been a slight improvement noted, it would probably be temporary. He was inclined to think that- although prices were not likely to improve, they would not be much'worse. It was a v4ry difficult problem for directors to decide on the .best policy during the year. Butter had to be made during part of the Reason, and- tlie question always was how long to continue. The first part of the esason was' a butter “win,” but those who, like his company, had butter arriving, now would suffer. He added that there were many advantages to the supplier of cream, and some of these had stated that they would rather accept twopence or threepence less and not have to bring their milk to the factory. However, he considered that eventually New Zealand must became largely a cheese country, and that the cheese industry was eminently suited to Taranaki.

The general manager of one of the large factories in west Taranaki drew attention to the ever-growing competi. tion, and said- this was borne out by the record of shipments reaching England this month. He s&id his factory had avoided the mistake made by some of continuing butter manufacture too late in the season. He was very hopeful, he added, of the good result of the , Control Board. The position Was so different, .lie continued, for the dairying countries which were within comparatively easy reach of the great consuming centres of population. This question of regulating shipments was practically the crux of the whole position, and it was most difficult for New Zealand producers, situated as they were on the other side of tlie world. He added that it always seem--3(1 unwise that there should' be no central board of advice, and that factories all acted according to their own opinioss. In view of the increasing competition from abroad, tbe need of an advisory board was ever more urgent. »

The consensus of opinion—and those quoted may lie justly considered fairly representative men, who perhaps look at tlie question froYn different' points of view, but who, nevertheless, are all concerned in securing the best possible -esults to the producer—seems to be that co-operative factories would liewell advised to act with caution in their turning over from cheese to butter. and to learn from the experience of past seasons, the mistakes of which had been repeated this year. The advice appears to be very sound.