EXPORTS TO BRITAIN.

Manawatu Standard, Volume LIX, Issue 21, 23 December 1938, Page 9

EXPORTS TO BRITAIN.

IMPROVED DISTRIBUTION

Per Press Association. •WELLINGTON, Dec. 22. “The distribution of butter apd cheese in the United Kingdom has been widened by means of direct shipments to the main United Kingdom pyorts,” states the annual report of the Primary Products Marketing Department. “In particular, regular shipments have been commenced to Cardiff, Southampton, Hull and Newcastle-on-Tyne. Over one third of the Dominion’s butter and cheese is now distributed from ports other than London, with the exception of butter to Glasgow. The shipping programme for 1938-39 calls for still greater quantities for the west coast ports.

“Tlie price level of New Zealand butter and cheese has improved substantially during the year in relation to the produce of competing countries and the disturbing fluctuations in price during short periods have been minimised.

“New Zealand in 1937 supplied 31 per cent, of the total imports of butter into the United Kingdom, Denmark 24 per cent., and Australia 16 per cent. In the same year New Zealand supplied 59 per cent, of the total cheese imports into the United Kingdom, Canada 25 per cent, and Australia 4 per cent.” EFFECTIVE PRICE MARGIN. The relationship between butter manufacture and cheese manufacture is referred to. After pointing out that the differential marginal payment in favour of butterfat supplied for cheesemaking is intended to compensate suppliers to cheese factory companies for the comparatively lower returns from by-products and for the costs of delivery of milk, the report states that there is evidence to support the contention that the price margin has been effective in arresting the steady decline in cheese production during the past five years. Figures are given showing that in the two seasons immediately preceding the introduction of the guaranteed price procedure the decreases in cheese production were, respectively, 10.62 per cent and 7.68 per cent. For the 198637 season the increase in chrese production was 3.12 per cent and for the 193738 season the decrease was 3.12 per cent.

“When it is considered that in respect of butter the decrease for the 1937-38 season is 7.59 per cent, it can fairly be claimed that the present price margin of 2d a pound butterfat in favour of cheese has assisted to maintain cheese production,” says the report.