Manawatu Evening Standard. THURSDAY, FEB. 25, 1932. ON SPREADING BUTTER.

Manawatu Standard, Volume LII, Issue 73, 25 February 1932, Page 6

Manawatu Evening Standard. THURSDAY, FEB. 25, 1932. ON SPREADING BUTTER.

Information cabled to the Dairy Produce Board covering- the wide disparity between the wholesale price of New Zealand butter and Danish on the London market has been given publicity during the past week and has apparently been accepted by the producers m this country as a sufficient explanation of the position. Prom 96s per cwt. for New Zealand and 130 s for Danish the prices have gone up to 112 s and 150 s respectively . (at the time covered by the cablegram, though there have been slight fluctuations since). The reason for the sudden rise, it is said, is that Denmark has apparently an established demand in Britain for a minimum quantity of about 2800 tons of butter per week. The premium represented by the price of 150 s was due in the first instance, it was stated, to a greater number of bids from the Continent enabling Danish exporters to ask for higher prices from British buyers and _ in the second place to a probable increased demand from the British buyers themselves in anticipation of the ten per cent, tariff becoming operative on March 1. The restrictions imposed by Germany and France against the importation of butter from other countries had been temporarily lifted, thus creating increased Continental competition for the Danish supplies. The New Zealand butter producer, who is repeatedly told that his product is one of the finest in the world, is doubtless wondering why there should be such a demand for the Danish article—a demand which this season has maintained the price of Danish in the United Kingdom at about twopence to threepence a pound retail higher than that for New Zealand butter. The position is galling to Dominion producers, to say the least, and it would appear that the. Dairy Pl-oduce Board must further concentrate its efforts in the direction of creating a wider market in the United Kingdom, and, better still, expanding the consumption to Continental countries if this is at all possible on a large scale. Comments have appeared in provision trade papers of late anent the “spreadability” of New Zealand butter in comparison with that of our chief competitor. It is true that we suffer a big handicap in having to resort to methods of preservation in transport which are unnecessary for the produce of a country barely three days’ sea journey from the_ chief English ports; but all things considered, it is patent that the “freezing” of our butter is not the only drawback —much remains to be done to create wider public demand for our produce, which is admitted by discerning customers to be of excellent quality. New Zealand has yet to go a long way towards breaking down the unre.asonable barrier of favour for the Danish product and making the number of consumers of our produce far greater.. The present movement in the butter market shows how important is the law of supply and demand; the fact that buyers in the Mother Coun-

try are prepared to go to a premium of about one-third more than the New Zealand price for Danish supplies speaks for itself, and more attention might be paid to the, question of spreading our markets overseas than to the spreading qualities of the butter itself. With commendable enterprise the Dairy Produce Board, aided by the Empire Marketing Board, has engaged in publicity campaigns for New Zealand produce throughout England and Scotland, but it would appear that the pace is not fast enough and the range of markets not sufficiently wide. It has taken years of work to popularise our products in certain parts of the British Isles and a large field on the Continent remains comparatively untouched. When the producers’ representatives realise the importance of making a much greater effort in these markets the producer can expect a better reward in the shape of a keener demand and a less disparaging price. It will be said that greater efforts in this direction would mean more money; but it should be well recognised by now how fruitful have been the measures already undertaken in widening the market—the increased production of this country has been absorbed almost as readily as it has grown, and that should give some indication of how vital it is to drive home further the “Buy New Zealand” slogan. The steps already taken to popularise Dominion butter have met with a good measure of success. The Board is on the right road, but there are many who believe that is not travelling fast enough. Had there been a strong Continental demand for New Zealand butter it is probable that the slump in prices experienced this year would not have been so severe.