BUTTER EXPORT

Hokitika Guardian, 13 July 1935, Page 6

BUTTER EXPORT

IMPROVED OUTLET PROSPECTS THE UNITED STATES'’ NEEDS WELLINGTON, July 8. The prospects of an improved outlet for shipments. of New Zealand butter to America are discussed by the New Zealand Trade Commissioner, Mr. JY W. Collins, .in a report regarding a recent visit to the United States, which has been received by the Minister of Industries and Commerce, the Hon R. Masters.

Mr Collins says that the ‘demand for butter importations into California is dependent upon the weather there. Owing to the mildness of the winter in 1934-35 and the good rains experienced no large quantities of butter were required from December to February. inquiries show that New Zealand has agencies that are able to cope quickly with any demand that might arise during next winter. Substantial samples of New Zealand butter have been sent to and tested by large buyers, and found to be quite satisfactory in every respect. The wholesale prices from March to April, however, in the large centres of San Francisco and Los Angeles have been from four to five cents a pound below New York rates and just low enough to prevent a Profit being made on butter shipped L' om New Zealand. If a normal dry season obtains- on the Pacific coast during the summer of 1935 the prospects of marketing substantial quantities of butter from New Zealand toward the eud of the year are considered to he good. The question of fluctuating .market quotations was explained by the commissioner to importers, and while they recognised New Zealand’s dependence apon London prices they expressed a hope that in the initial stages, if possible, firm quotations would be given for a period of at least seven to 10 days, shippers to take the risk of fall or rise until the market i s well established.

Certain quantities of New Zealand butter were marketed in Mexico, during the period in which Californian prices were unremunerative. This trade with Mexico may be small, in the meantime, says Mr Collins, tout the quality of the butter has been most favourably cmmented upon, and there is every reason to believe that that country may form an important alternative outle- 1 .when Californian prices are not profitable.

As to the prospects of marketing butter, meat and tallow in the. United States in the future the opinions expressed to Mr Collins were optimistic in regard to butter, especially for the eastern states The demand for meat will probably centre in selected beef cuts and lamb. In the northern middle States it is expected that there will he a' better winter storage position than .was the case in 1934-35. High prices, however, are expected toy dairy farmers to operate during the winter of 1935-36, and this should enable sales to be effected in the main ports served by .steamship lines trailing from New Zealand. There have been discussions recently between representatives of the Governments of Canada and the United State s with the object of negotiating a trade agreement between the two eontries. Although the difficulties are considerable, both Governments are hopeful of concluding such an agreement.

The question of a trade treaty between New Zealand and the United States is before both Gvernments. Mr Collins states that the executive officers of the leading chambers of commerce, and merchants aud brokers, particularly on the Pacific cast, are showing considerable interest in the p 1 aspects of such an agreement being con eluded. _____