PRICES IN LONDON.

New Zealand Herald, Volume LXVII, Issue 20601, 27 June 1930, Page 16

PRICES IN LONDON.

NEW ZEALAND AND CANADIAN. EXPLANATION OF DISPARITY. DIFFERENT MARKET CONDITIONS. [BY TELEGBAPH.—OWN CORRESPONDENT. ] HAMILTON, Thursday. Interesting figures in explanation of tho disparity in prices between Now Zealand and Canadian cheeso wero given .by Mr. VV. M. Singleton, director of the Dairy Division, in an address at the annual conference of the National Dairy Association to-day. „ " Canadian cheese was on tho market beforo Now Zealand cheeso," Mr. Singleton said. " New Zealand cheese came on that market in tho eighties, and during tho present century New Zealand has been increasing her production very rapidly. Canada roached her maximum export to the United Kingdom in tho nineties, and has been reducing her exports during much of the period that New Zealand's have been extending. Tho total import of cheese into tho United Kingdom has, however, increased 6inco 1913 by one-third, whereas tho population has increased by only about 7 pelcent. The proportion of the population which consumes cheese must havo been augmented very considerably to take charge of tho increase in imports." Factor in Widening Variation. Tho United Kingdom's total importation of cheese in 1913 was 114,862 tons. For 1925 and onwards it had been over 150,000 tons, excepting in 1929, when it was only about 5000 tons short of that total. The disparity in prices between New Zealand and Canadian had been accentuated during that period. It should, Mr. Singleton believed, be accepted that the increased imports of cheese into the United Kingdom since 1924 had been a very potent factor in widening the variation between the prices of New Zealand and Canadian cheeso. The quantity of Now Zealand cheese had been increasing and the quantity of Canadian had been decreasing. It was New Zealand cheese for which the new consumers had to be found, and the changing-over to cheese by these consumers made it necessary for New Zealand cheese prices to attract them in most cases from some other food commodity. Henco New Zealanl cheeso had to buy its way into the market, whereas Canada was in a position to surrender that portion of her clientele which would pay least money. The incroase in receipts of New Zealand cheeso into the United Kingdom in 1929 over 1913 amounted to some 65,000 tons. There was a decrease from Canada of 28,000 tons. Presuming that the consumers affected by that decrease did divert to New Zealand cheese, there was still an annual balance of 35,000 tons of New Zealand cheese for which traders in the United Kingdom had to find consumers.

Canada's Strong Position. Since 1913 the annual > of Canadian cheese into the United Kingdom had decreased some 44 per cent. This put Canada in an exceedingly strong position from the standpoint of price competition. Since 1913 the annual receipts of New Zealand cheese into the United Kingdom increased by 211 per cent. This put New Zealand in an exceedingly weak position from the standpoint of price competition. " The fact must not be overlooked that the largely increased quantity of cheese imported into the United Kingdom makes it necessary to sell it at a price which new consumers will pay," Mr. Singleton said. "It is one of the principles of economics that it is the surplus that determines the price. The best business men among the Tooley Street importers recognise that all New Zealand and Canadian cheese could not be sold at the highest quoted prices for Canadian, even if the quality of the total were equal to Canadian best. -" The fact appears to be that there are not the consumers available for this large quantity at such a price level. My information is to the effect that a considerable proportion of Canadian cheese cannot be sold at those quoted prices. It is, therefore, not correct to estimate New Zealand's loss on account of defects in quality at the difference in price per cwt. between that which New Zealand received and that at which best Canadian is quoted."