FOREIGN BUTTER BOXES

New Zealand Herald, Volume LXV, Issue 19940, 8 May 1928, Page 11

FOREIGN BUTTER BOXES

INCREASING IMPORTATION. EFFECT ON TIMBER INDUSTRY. AMERICAN COMPETITION. [BY TELEGRAPH. —OWN CORRESPONDENT.] WELLINGTON, Monday. The importation of foreign woods for butter boxes and cheese crates and fruit cases has been a sore point with New Zealand saw-millers. The dairy producers, on the other hand, have been loth to relinquish touch with foreign timber, because, though it may be inferior to New Zealand white pine and beech, they fear that prices for the New Zealand products will rise too high unless a competitive influence is maintained in the shape of a certain proportion of imported timber. Figures quoted in a report of the Forest Service indicate that at the moment the tendency is to increase considerably the imports of hemlock and spruce intended for the export package of New Zealand dairy produce. This is the real purpose of such imports, because, in the case of export dairy produce, as apart from local consumption, a drawback of the duty is granted, so that whatever the hemlock and spruce paid in duty when they were landed is repaid when they go out again as containers of export dairy produce. During the quarter ended March 31 last, as compared with the same quarter of 1527, dairy produce containers manufactured from hemlock and spruce were imported in increasing quantities. From the dairy produce, and particularly the butter point of view, the Forest Service reports that the use of these containers for export, "despite reports from the London market of degrade occurring in butter packed in them," is serious. One-Third in Foreign Packages.

"The position as regards the local box and crate industry is also serious," the report proceeds. "During 1927, 20 per cent, of the butter and 24 per cent, of the cheese exported from the country packed in imported containers. To date this year the increase in the importation of "butter boxes and cheese crates has amounted to 31 per cent., and 52 per cent, respectively, when compared with the corresponding period of last year. If this rate of increase holds throughout the year, and indications certainly point in this direction, 26 per cent, of our butter, and 36 per cent, of our cheese, will, during 1928, be exported in foreign containers. The damage to the local industry is thus serious. Reckoned on the ruling prices of local butter boxes and cheese'crates, it represents an annual loss in trade to the industry of £103,500." Another indication of the same tendency, as revealed in the report, is that only one country increased its timber exports into New Zealand during the March quarter, and that country is Sweden, -whose larger figures this year are "due to the heavy importation of dairy produce containers, manufactured from spruce in Sweden." It is noteworthy that while American hemlock shows an increase in the dairy produce container section, in the total it showed a decrease, and so did the other three building softwood from America, Douglas fir, cedar and redwood. Less Australian Hardwood.

Comparatively, the proportion of New Zealand's import timber trade claimed by Canada shows a fall from 19.8 to 15.2 per cent., and the United States shows a rise from 30.6 to 41.2 per cent. At the same time, the import from the United States is actually less in total, and the relative increase of the United States is due to the greater degree of shrinkage in imports from other , countries. For instance, "Australian hardwoods, used extensively throughout the country in public works and general constructional schemes, report the largest decrease this year, the fall in this item being approximately 3£ million feet board measure." Australia's decrease is from 44.9 to 36.8 per cent. In aggregate figures, New Zealand's timber exports for the quarter decreased by about one million feet, as compared with the 1927 quarter, and her import? decreased bv about six million feet; but exports remain not much more than half of imports. Following are the details : EXPOKTS. March quarter. Fest b.m Value. 1927 .. 8,554.000 £ 95.450 1928 . . 7.605.000 85,660 Decreases 949,000 £9,700 IMPORTS. 19-27 . . 19,303,000 £ 240,390 1928 . . 13,547.000 173,760 Decreases '5,756,000 £66,630 The removal of export restrictions is intended to help the timber industry in its struggle for sales, either within or without the Dominion. When the policy of restriction of export was initiated seven to ten years ago, the prospect of forest depletion was feared more than slackness in the timber industry. But with the advent of keener foreign competition and depression in the local industry, accompanied by a fall of 50 million feet in the output of New Zealand timber last year, another view of the situation has been taken, resulting in removal of restrictions. The Australian Market. An improvement in the economic conditions might in a year or two put the Government in the same situation as confronted it when the export restrictions were, initiated. But will the great Australian demand that formed the feature of the New Zealand timber situation immediately after the war ever recur! Since then the American timber contribution to the South-Western Pacific has assumed a new scope and intensity. Before the war it was mostly Douglas fir (or "Oregon") that was heard of in Australia and New Zealand. Now come also the American cedar, redwood, and hemlock, and the spruce of both America and Scandinavia. In view of the American position in the Australian market, can that market be won back for New Zealand softwoods ? Eight to ten years ago it was feared that Australia would rush NewZealand softwoods; now the tendency is to fear that Australia won't. The New Zealand timber trade has claimed in the past that an Australian demand for rimu second grades (not readily saleable in New Zealand) will help the industry to sell in New Zealand the grades that New Zealand wants, on better term 3 than could be given if there were no export. Henceforth, there will no be export restrictions calculated to hinder such a selling policy. But whether the restrictions ever did hinder export to any marked extent is still a debated question. There are people who say that in recent years New Zealand exporters seldom exported up to the limits permissible under the restrictions now abolished, and that the governing factor has been and will continue to be economic, centring in the American competition. In other words, one of the checks on timber depletion in New Zealand is the degree to which the Americans will continne to export, relying (wisely-or unwisely) on their own measures for avoiding or circumventing the timber famine risk in their own country.