BUTTER AND CHEESE

Nelson Evening Mail, Volume LIV, 30 March 1921, Page 5

BUTTER AND CHEESE

THE MARKET OUTLOOK

In an interview at Invercargill, Mr T. C. Brash, a member of the Dominion Butter Committee,. who recently returned after representing the National Dairy Association in London, and the Ncav Zealand producers in the negotiations with the Imperial Government over the purchase of the Dominion's cheese and butter, dealt with the outlook for dairy produce when the free market comes into force rfter March 31st.

According to Mr Brash, there is a probability of the South Island being barron of butter supplies very shortly. It is the custom of the South Island producers to store butter for the v, inter season, keeping sufficient to c; j ry them ov"br tile lean months with assistance from the North Island, but this year, fearing that the price, will decline, they have «old everything, with .a, result that the South JsiunJ will be entirely dependent on 'lie North for its winter butter. Further, North Island dairymen, especially those further north, have resolved not to sell under 2s 4d per lb, which 'will mean a retail price here of 2s Sd. The price, however, as far as the producers are concerned will be definitely decided at. a meeting in Palmerston North on April 30th. The northern producers are arguing that, having got 2s >d per lb for summer butter, they ire entitled to more during the winter, but, on the other hand, says Mr Brash, 2s 6d is more than butter has been north during the past month or two. Mr Brash went on to say that the Butter Committee, in conjunction with the Government, had decided that, in view of the unusually large amount of butter being manufactured,' it was unnecessary this year to hold back the I usual 80,000 boxes for local consumption." As evidence of the increase in the manufacture of butter recently, Mr Brash gave the following hitherto unpublished figures showing the value and quantity of the butter sent into cool store from the beginning of August to the end of February, 1920-21, as compared with the same period of 1919-20: Value. Increase. Year. £ Tons. lbs. 1919-20 2,696,719 14,899 4,976,021 Tons. 1920-21 76,728,110 27,403 12,504 The figures relating to cheese for the same periods are: — Value. Quantity. Increase. Year. £ Tons. Tons. 1919-20 1,270,688 42,565 1,931 1920-21 5,596,873 43,612 1,407 Commenting on the outlook for the cheese market, Mr Brash stated that it was more hopeful than that for butter. Imports into Great Britain had increased during the year, and it was difficult to see why prices were keeping up unless it was that people v ere recognising more widely the food value of the product. Variations in the exchange rate between Denmark and America had caused the Danes to cease shipping to America, consequently butter supplies from Denmark were once again going into England to the detriment of the New Zealand oxport .trade. Holland, who also bad been out of the market for a , long period-, was again coming in. The further rationing of the butter ;supply by the Imperial Government had not done the market any good. Restricted in their, purchases, so that '. hey had to buy nine times as margarine as butter, the people had decided that they might as well buy all margarine of which it is estimated that 300,000 tons were being annually used in Great Britain. Personally, however, he did not think that so long as the New Zealand producers kept up the quality of their butter there was much fear from'the competition of margarine. Purchasers would ho found at reasonable prices. The general opinion at Home was that New Zealand bttter was bettor than Danish. This was largely owing to slackness, in tho Danish export inspection during the war, while the grading in New Zealand was kept up to»the mark. Irish butter was not coprparable 1 with New Zealand butter from the keeping ; point of-view", and while in keen demand-when fresh, sold at under New Zealand rates for storage purposes. As to New Zealand 1 ; cheese, it was freely stated among, London merchants that it had never been better. This was due to a large proportion of the cheese exported being made from pasteurised milk and also to the cheese being cool stored prior to ..shipment. The latter factor was forced on the producers during the year, but its advantages were not realised.