MARKETS FOR BUTTER

Northern Advocate, 13 July 1925, Page 4

MARKETS FOR BUTTER

During liis recent visit to the United States the Hon. W. Downie Stewart investigated many matters in which New Zealand is interested, and lie seems to have gone very carefully into the possibilities of trade with America in dairy produce. From time to time during recent years fairly large parcels of New Zealand butter have been purchased by Americans, and Mr Stewart is able to say that this butter has proved "tremendously .popular," and that its superiority over the local article has created an eager demand for it. This would suggest that there is in America a readily accessible market, which merely awaits vigorous development, but the fact is that it is a market that is surrounded by a high tariff wall. This wall will be built even higher if the producers of the States secure the additional protection which they are seeking. At present a duty of eight cents a pound ik imposed on New Zealand butter. This is approximately equivalent to. .foilirpence a pound, which, added to' the price necessary to give a profitable' margin to the producer and the middleman, would result in an ultimate cost to the consumer which woulcf make? th' 6' New Zealand article an expensive commodity. While quality- will always ensure a certain demand regardless of price, an unduly expensive butter will not command populaf ! • attention. Mr Stewart discussed iii official quarters the possibility tif see.uring a reduction in the duty, but he found that the American producers were complaining that the duty was not high enough and they asked that it should be raised to ten cents a pound. Mr Stewart even suggested the removal of the duty, in view of the fact that New Zealand was a large importer of American oil, •motor cars and other goods, but no hope was held out of this proposal being received favourably. In face of the existing tariff America cannot be developed as a big market for New Zealand butter. The English market !

still offers, and alwuy3 will provide, the best market, and while a certain quality of butter will meet a ready sale in America, it is on the English market that we must concentrate. The aim must always be to improve the quality of our produce and ensure the most efficient marketing in Britain, the exploitation of foreign markets being of secondary importance.