BUTTER AND CHEESE.

Northern Advocate, 4 June 1924, Page 7

BUTTER AND CHEESE.

ARE NEW ZEALAND PRICES TOO HIGH? REFLECTION UPON RECENT * SLUMP. "In our last annual report," states tho annual report of the National Dairy Association of New Zealand, Limited, "wo mentioned that during April of that year butter fell from 190s to 138s. From the end of June onwards it increased gradually until at the commencement of the new season on September 1 the price stood at 100s. From that data onwards to the end of February the market gave; indications of having stabilised. Whilst the price actually touched 2225. in December, 190s was still recorded :\t the end of February. From this date tho market became demoralised, and the price ;'.t March .",0 was JfjOs to 1.145, p.. drop o? alum:-! -Ids in , -; , c.vt iv. o:ie month. At tlu-sc ligure.s the market remained stationary, but il'iring the last week in April made a :•■:!;:>■[:> aihumv, rising to I.CSs in ten days. The opinion generally expressed by the morclumts is that thi> increase is only temporary. "Many theories have iieen nut forward as reason.-! for this sudden col-la-pso, but none of Hum seem to satisfactorily explain the position. The j reason wlii'-h has heen iiiwn :mos? n-;-1 '"iei:<:.-.' is thai the slump was iii:e r> I:x.< : VHv hravv shipments arrivi'ip; from ■ I New Ze::land during March. This i:-: ; J not borne out by facts, for tlie actual j position is that the arrivals of New '. Zealand butter and -cheese in Oreat' Britain during March, wore li;>:* th.ni ; during February, and further. New i Zealand's total butter is only 22 per '■ cent, of the total importations. Tiie j reason must bo looked, for elsewhere. 3t may lie that Inittej- at 100s lo 200s wholesale is actually I>eyo7?d tho I purchasing power or the people, into consideration th.-. industrial di-s----turbance and consequent unemploy- | ment. ?.foro i)u/,:.'.liurv. however, th.m i

■ ■■v'l". -liv'i-.: jni/,/.1 ■. .1.;, m;>n\i vi'.r. I)).in 1 the ?lurnp in the market, is tho dif- i ferea.-f in price bctueen Xi«\v Zoala"! { and Danish, vi/., 30s to 40:; per cwt. at March .11. "It is true that duvi?)o- April the difference shrank from 10s per cwt, but had Xew Zeiiland butter been able to compete with Danish butter during March on the same basis as during Xyvember and Deee.-nber, the revenue of the producers would have increased probably a quarter of a million sterling. "Taking note of market fluctuations during the last faw years, -the following points stand out: —(1) When the market is strong New Zealand and Danish prices are almost equal; (2) when a slump in prices occurs the Danes -are able to hold their prices for some considerable time after the prices of New Zealand have collapsed; (3) when the price of Danish does fall it never falls so far as the price of Xcw Zealand, and the difference between the two butters :s much greater than when the market is strong and prices high. This offers a ?ood field for investigation by tho Dffiry Export Control Board and for filosd co-opomtion with the Danish marketing organisations. •"' POSITION OF CHEESE. "Turning to cheese, it is found that New Zealand and Canada are supplying almost 90 per cent Of the importations into Great Britain, and as the two countries are in opposite hemispheres, it is natural to expect that prices of cheese would be more stable. We find, however, that in the 1922-23 season the difference between the highest and lowest pointn of butter -vrtis 98s per cwt; and of cheese 84s, and in 192.3-24 the

mnerencc is, Duuer oos, cneese oes per .vwt. It is pleasing to note that whilst there are occasional fluctuations the tendency is for New Zealand cheese to bring rather a better price than Canadian. "The Dominion was i 'cently visited by Mr ,T. A. Ruddick, Dairy Commissioner for the Dominion of Canada, and at one time Dairy Commissioner in New Zealand. On his ?"etuni to Canada, he frankly told the producers of that Dominion that New Zealand had put Canada into second place as far as quality was concerned. "At April 30, 1923, the price of cheese was to 9(>s per cwt, but receded, until at June 30 the price was 82s to 84s, gradually rising to 104s to 112s in August, and 122s to 124s in September. The latter price was the highest point for the season. "During September f.o.b. sales were made at 10£ d per lb. for cheese made to the end of November, and later 10d was paid for cheese made up to the end of December. "Tho expectations indicated by these prices were not realised. The market fell gradually till it reached, at the end of January, 104s. and at the end of March, 82s to 84s. As with butter, the market improved during the last week in April, advancing to 88s per cwt. ,.