DAIRY PRODUCE.

Hawera Star, Volume XLVII, 30 July 1928, Page 5

DAIRY PRODUCE.

SEASON’S PROSPECTS BRIGHT. REGULATION OF SHIPAIENTS. In his monthly review in the “Dairy Produce Exporter,” tlie newly-elected chairman oi tlie Dairy Board, Air. W. A. lorns, remarks that prospects are aright for both butter and cheese, particularly the latter. Since the beginning or 1924 only once have cheese prices reached their present figure, and that was lor a short period in 1925, .vixen pi’ices touched 120 s, with practically no cheese on the market. There is every indication that cheese prices will be firm for some time to- come, .luring the last thi-ee years the importations of cheese into Gi'eat- Britain nave shown a gradual decline, the total importations for 1927 being 7500 tons .ess than tor the year 1925. This decline is the result of a decreasing exoort from Canada, and reports to hand indicate a further decline in exports tom that Dominion during the present season. Air. lorns goes oil to say: “The most litfieiiit problem the directors of dairy .ompanies have to deal with at the present time is the disposal of the season’s outputs. Buyers are offering r.d per lb f.o.b. for cheese to the end at" December, and at least one firm has ,een offered 9£d to the end of the season. These prices are good, but in response to various inquiries from dairy companies our reply has invariably ,een: ‘Do not sell.’ The cheese position is strong and likely , to improve. I’he average price realised for the past season for consignments will be over id per lb f.0.b., and the coming season should show even better returns, a the first five months’ output of the season is to be sold, then it should be .it a fairly high price, in view of the statistical position. “Ali-eady purchases of butter have jeen made for shipment to Eastern Jana-da during the months of October, November, and December, and in at least one case including February, i‘rices have been paid averaging Is sid to Is oijd f.o.b. New Zealand ports for shoi’ter periods, and Is od to end of February. This repi’esents 178 sto 183 s in London, and must be considered satisfactory. The improvement in the economic situation, in nearly all countries is having a hardening effect on prices. , “At its meeting on July 11 the board gave consideration to the quantities to oe shipped per month during the oonr--1 ,ng season. A decision was made that ill butter and cheese graded up to the 311 d of November should be shipped out us promptly as possible. Further consideration will be given to this question in September. There is, however, a growing feeling that a policy of regulation will require to be established to which effect must bo given over a period of years. It would be quite unwise to- make statement as to the immediate gain of such a policy, but taking the long view it is safe to say that if our produce was kept on the market more or less regularly all the year round the industry would benefit substantially. /The lack of supplies of outproduce for considerable periods makes difficult a consistent advertising policy which the board is seeking to carry out. The prices realised tor Canadian cheese are sometimes given as a reason why our produce should be shipped and sold as quickly as possible. The fact is overlooked that Canadian cheese is a gradually decreasing quantity, whereas both butter and cheese from New Zealand are increasing. “Tlie board has finalised the contract for marine insurance for another twelve months. The premium for insurance on cheese has Men reduced by 3d per cent., representing a reduction on tlie total cheese shipments, of i£Boo per annum compared with this season. The premiums now payable are as follow : Butter, '« 3d per cent.; cheese, 9s per cent. ‘ ‘The contract arranged by. the board has been operating most satisfactorily. The rates of premium ruling under the board’s policy represents a reduction of nearly £30,000 per annum as compared with the rates prior to the inception of the board. Local claims during the past season have been very heavy, owing to a number of fires in idairy factories. These claims have all 'been paid promptly and on.a satisfactory basis. The present rates of premium, including the slight reduction obtained for next season, are only maintained by reason of the shipping inspection instituted by the board in England and in New Zealand. The continuation of this inspection has been made a condition of the contract, which clearly indicates the opinion of the underwriters regarding the value of such inspection.”