DAIRYING IN AMERICA.

New Zealand Herald, Volume LXI, Issue 18763, 17 July 1924, Page 5

DAIRYING IN AMERICA.

SUPPLIES AND MARKETS.

THE PROTECTIVE TARIFF.

NEW ZEALAND INVESTIGATORS. Some informative comment on dairying conditions in the Pacific States of North America is contained in a report from Mr. W. Grounds, chairman of the New Zealand Dairy Control Board's delegation, which is now on a tour of investigation through the United States and Britain. After an extensive tour of the Pacific Coast, the. delegate!? formed the opinion that the Western States of America can supply all the dairy products required for local consumption. While the large industrial centres are expanding rapidly, there is much scope for dairy development. The industry enjoys a tariff protection, ih'9 duty, on imported dairj? products being 8 cents-. This gives producers a substantial price for their products. California is the one Western State which does cot produce to the measure of its requirements, and draws supplies from sister States along the Pacific Slope.

Effort to Increase Protection. "Over the Canadian border," states the report, "there is at this season of the year a surplus of Alberta butter, which is of good quality, about even with the best Washington and Oregon product, and much better than the general run of California. At present there is a difference of approximately B cents per lb. between Vancouver and San Francisco markets, which, being the amount of th« duty, is just sufficient to keep out the Canadian article. The price-fixing factors upon this coast are the cost of New Zealand and Canadian, plus the duty one hand and the price at New York and Chicago plus railway freights, on the other. We note that an effort is being made to induce Congross to raise the dutv to 12 cents. Th& country block is said to be very strong politically. Whether they are powerful enough for this, in view of the great industrial development in the country, the future must, decide. As tariff revision in U.S.A. is a burning question, possibly this is the farmers method of endeavouring to retain ths present tariff." Discussing methods of jnanufactur© Grounds notes that, in regard to milk supply plants, the bottle system of distribution is compulsory, even in cafes and hotels; if milk is called for, it must be served from original bottles, securing o each purchaser an even quality. Ino question of standardisation gams considerable (attention, .and some ffrma are guaranteeing their jsupphes. Friesians are the dominant breed among the Call- . fornian dairy herds, and breeders are moving toward increasing the fat content in milk. , Methods oi Marketing,.The delegates attended the San ' Francisco Exchange for ifce call on May 13. Several dealers asked for quotations for New Zealand butter next October. Prices that day werß 39J,- to 40 cents per lb, less 6 per cent., which allowance is ; cuistjomary. In Vancouver prices are about 31 cents net; After the ca}l one merchant naively assured the delegation that he had endeavoured to bring down tke market by his offerings, but the market was too strong for him. The usual method of marketing appears to be that factories consign to'a particular broker and take the .price declared by the exchange, upon the day of delivery, as its value. The price declared is the concluding bid of the day. It will be seen that' this may or may not indicate the true" position. In the case in point the merchant who was trying to break the , market made a number of sales at 40- As the concluding offer was at 39£, this then was declared the market price of the day. He therefore presumably made £ cent profit on all the sales of the day outside bis ordinary commission. The Californian Dairy Council is dissatisfied with , the present marketing methods, and has tried on several occasions to establish a form of co-operative selling floor in place of Exchange method, which, it is contended, would reduce marketing costs by 75 per cenfc. Retention of rights is a prominent argument in the opposition. There is a considerable export of dairy products to Alaskn, the butter, in 21b blocks, being packed in brine. Large quantities in tins are also being shipped to the Orient. Surprise was expressed in San Francisco: that New Zealand allowed America a virtual monopoly in export of butter to the West Coast of South America. It is generally thought that the Orient is a big prospective market for New Zealand, Australia and Pacific Coast States.