Manawatu Evening Standard. SATURDAY, AUG. 16, 1930. PROSPECTS OF DAIRY SEASON.

Manawatu Standard, Volume L, Issue 223, 16 August 1930, Page 8

Manawatu Evening Standard. SATURDAY, AUG. 16, 1930. PROSPECTS OF DAIRY SEASON.

Should the information prove to be coiTect it will be good news to New Zealand butter producers to learn that, according to Continental reports, hot weather and want of rain are responsible for the falling off in the make of butter in "parts of Europe. The weather conditions in Denmark, however, were favourable, but the yield of butter is said to have been less this season than was anticipated. Both Germany and England have indulged in speculative buying in Denmark and the market there has been satisfactorily cleared. As the northern producing season is drawing to a close it is possible more attention will now be paid to the New Zealand product, and producers will hope for better returns for their labours. To what extent prices for oue. products are influenced by the overseas amalgamations of commercial interests concerned in the handling of food supplies and raw materials it is impossible for us in this Dominion to say; but it cei'tainly does appear that the amalgamations, mobilisation of wealth, or ‘‘rationalisation’" of distl'ibution and sales, which have been effected during the past year or two, may have some influence on the prices obtained by primary producers for the products of their labours. For some time past English newspapers of varying shades of political opinion have directed attention to the difference between the prices received bv the producer and those paid by the consumer; they also assert that tile retail trade lias enjoyed a profitable period. It would appear, on the face of the evidence, that on the one hand the producer - receives too little for his labours while the consumer is paying too much when the buying and selling prices are taken "into consideration. If it proves to be coirect that European stocks of butter are being used up, the N ew Zealand pro-

ducer may liope to receive better prices. It must, however, be recognised that he is laced with the competition of huge margarine interests which, also, deal in butter. In this connection Mr L. T. Mclnnes, Director of Dairying in New South Wales, reports that Australia and New Zealand exporters will have to take into account the powerful margarine manufacturers’ combine which embraces all factories in Europe and Great Britain and whose capital is. £100,000,000. This great organisation has control of the purchasing and blending of the world’s surplus butter which goes to London, the blending of butter with vegetable margarine, and the regulation of retail distributing prices in retail shops operating in groups. These controls are said to have given the margarine monopoly the mastery of the world’s butter trade. The production of butter is being encouraged in Germany by a duty of lid per lb; while the Canadian and United States duties practically close those countries as markets for our butter and the price obtainable by our producers is proportionately reduced. In time the tariff wall will make Germany self-supporting. This will res'ult in Denmark, Holland, Norway, Sweden, the Baltic States and Poland sending increased quantites to England to compete with our product. . And Great Britain has entered into a trading treaty with the Argentine Republic whereby the latter is guaranteed all the privileges that are now or may be in the future given to the Dominions of the Empire in regard to entry and exploitation of the British market. l’his concession is of consequence to New Zealand as the Argentine export season is the same as ours, while the shorter distance gives the [Republic the advantage of cheaper freight, and with cheaper laborn 1 they are enabled to compete with us on terms favourable to them. The formation of the Australian and New Zealand co-operative organisation (called Empire Dairies) has been brought into existence .to partially counter the activities of the combine. As the combine is a very wealthy organisation operating, in the consuming countries it is difficult to see how producers at this distance are going to succeed to any extent. While European countries have erected tariff barriers against us or are competing with us in our best market (England) butter and cheese producers are aiding the workers and traders of certain of those countries by purchasing timber from them for use in construction of butter boxes and cheese crates. The present position is obscure but it is not without hope; there is a chance that our dairy farmers will during the season now entered upon secure prices on a par with those at present ruling or slightly better —but not boom prices.