Butter for Japan

Manawatu Times, Volume 62, Issue 167, 16 July 1937, Page 9

Butter for Japan

INCREASE IN NEW ZEALAND EXPORTS New Zealand has benefited directly from a series of setbacks suffered by the Japaneso butter industry in. recent months, and there has been a large increase in shipments from the Dominion since tho beginning of the year. Until recently Australia conducted the bulk of export business in butter with the East, but New Zealand has entered tho market strongly and to a large extent has displaced the Commonwealth. Export business to Japan has practically finished for the season, as the domestic production is now at its peak. The fairly large shipments which have recenly been made to Japan appear to open up new avenues and local merchants consider that the East will probably absorb increased quantities and become a valuablo annual source of export. The newly-inaugurated direct shipping service, which commenced in April, has exerted a strong influence in placing New Zealand on an equal footing with Australia in competition for the Eastern markets. However, the future of this new export business is clouded by one serious factor, the possibility of action by the Japaneso Government under tho exchange control law. Seeking to reduce the large excess of imports, the Government proposes to classify them into four classes, according to their urgency, and to issue x exchange permits accordingly. Under the tentative classification butter is regarded as a luxury on which fairly rigid restriction will bo placed. The increase in tho butter trade is illustrated by the fact that during the first three months of this year imports to Japan totalled 79,1551 b, compared with 38881 b for the whole of 1936 and 87091 b for 1935. The production of butter in Japan in 1935 was about 6,000,0001 b, and it has been estimated that present production is at least 10 per cent, below the annual requirements of the market. On this basis imports will have to approximate 600,0001 b annually. Moreover, the < local demand kaz been steadily increasing. Provided that the attitude of the Japanese Government is favourable a valuable export market should exist for New Zealand in tho future.