THE OLD COUNTRY DROUGHT. CAUSES OPTIMISM.

Hawera & Normanby Star, Volume XLI, Issue XLI, 11 August 1921, Page 8

THE OLD COUNTRY DROUGHT. CAUSES OPTIMISM.

WELLINGTON/Aug. 10.j | The drought conditions in the northern hemisphere cause New Zealand dairy producers to be optimistic about the coining season's returns. London reports certainly promise high prices for early butter shipments. However, if high prices prevail Australian icompetition is likely to be keen. The Commonwealth product, though not so uniformly high in quality as New Zealand, will be in" heavy supply. Fears of an export value of Is 6d per Ib, f.0.b., for butter for August-September shipment were experienced a few weeks back in Victoria, and sellers in Adelaide a few days ago offered butter of the current season's make at Is 6d per lb f.o.b. Adelaide. This action caused perturbation in the famous butter production districts of Victoria at the time, and,as late as July 30 Melbourne was importing, butter at Is 7d to Is 8d for domestic consumption. The latest reports by mail from Queensland show that the winter production has exceeded all records and. that 9500 boxes a week are already available for export after meeting all local requirements. New South Wales has experienced severe losses in the North Coast dairying districts from floods, and Mr. Prescptt/ the wellknown authority, reports that it is expected that the quantity of butter manufactured in tlie near future will be at a minimum: Victorian supplies were increasing and by this time the State should be self-supporting and will have an early surplus. Queensland is already exporting to London, the Westmoreland taking 6500 boxes. Thus ,the New Zealand butter producer tor export will require to keep a close watch on Australian production and export, especially in view of the experience during the requisition years, wnen butter was sold at prices much below what the New Zealand producers considered it was worth at the time. Canada, as a cheese competitor, is still far from a certain quantity, owing to its drought conditions. In England and on the Continent,, if the early summer has been exceptional, it is possible that production may be extended beyond the usual period. The combined make of cheese in England, Wales, and Scotland is exceptionally heavy in normal times, and although exact statistics of the > output are not available, the cheese passing from the farm directly into the market place or to the distributors is a factor that the New Zealand producer cannot afford to overlook. . The unfortunate drought conditions in the northern hemisphere ,have undoubtedly enabled the Imperial Government to substantially reduce its losses made on the purchases of New Zealand and Australian butter and have also swept out of the way accumulations in stores that would have menaced the future of New Zealand iand Australian Jnew maizes cjf , butter had . the northern 'production been as heavy as usual.