LONDON DAIRY MARKET

New Zealand Herald, Volume LXIX, Issue 21378, 30 December 1932, Page 5

LONDON DAIRY MARKET

PROPOSALS FOR QUOTA

REPRESENTATIONS URGED NEW ZEALAND AND AUSTRALIA [fbom our own correspondent] , HAMILTON, Thursday The opinion that the position of the London dairy produce market was ciently serious to warrant joint representations being made to the British Govern-■ ment by the Governments of Australia and New Zealand for the further consideration of the New Zealand .scheme of restricting foreign imports by means of a quota, is expressed in the monthly market' review of Amalgamated Dairies, Limited. At the Ottawa Conference a carefully- ■> prepared plan was submitted for tho limitation of foreign imports of butter into,' the United Kingdom, and it was then pointed out that this was the only way to raise prices quickly and that any duty imposed would be a slow-acting remedy, and would be paid by the exportef without added cost to the consumer, states the report. It was pointed out further . that it was only when a market was under-supplied that a seller could add the cost of duty on to the cost of the goods, and the recent, fall in prices had proved . the contention, and completely exploded the free-trade theory that' a duty on foreign butter would be paid by the British public. . ' Dealing with market conditions, the review states that during November and December London quotations steadily declined under pressure of.selling consequent on the heavy arrivals from Australia and New Zealand. Imports in November Imports of butter into the United Kingdom from all countries during November totalled 33,700 tons, compared with 800 tons for the same month of last year. Stocks in the United Kingdom were 2800 tons heavier than last year, but were not excessive and arrivals were going into consumption quickly. Great Britain had been absorbing increasing quantities of butter during the past few years entirely at the expense of margarine, and, actually, the total consumption of edible fats had not increased. . The present low prices were-not only due to increasing arrivals, but -in a considerable degree .to the anxiety of sellers to quit arrivals .quickly and before their, competitors in order to make a good com- \ parative return to the factories. The marketing of New Zealand and Australian butter in this respect was a contrast to the orderly marketing of Danish butter. The great disparity in prices between New Zealand and Danish - butter, was mainly due to excessive suppliesfrom th® Southern Hemisphere at a period when Danish exports were limited. During May, Juno and July the prices for New Zealand butter more nearly -approximated Danish. Australian c.i.f. sellers bad been largely responsible for the early fall in the market, with the result that certain co-opera-tive factories in Victoria were demanding legislation to abolish c'.i.fr and forward selling of Australian butter. The adoption by Australia of" the New Zealand system of rationing shipments , during the next >few months should tend toward a rise in prices, while a dry spell ■ in either country would further improve. the position. The Victorian season, was about at peak, but New South Wale 3 and Queensland outputs were still climbing. Importations to France The'duty imposed by France" on imported butter, was increased from September 27. Argentine, Danish and cer- v ■tain other Continental butters paid'seven francs per kilo (say, 80s per cwt.). New Zealand butter paid about 160s per. while Australian would pay about 480: i per cwt., plus exchange compensation surtax. It would bo readily understood that any export of New Zealand or Aus- - tralian butter to France was out of the question. • i ~. Recent, advices regarding the market pointed to the probability of a revision of the quota system and duties. • It i was proposed that imports should be allowed up to 55,000 tons yearly, which' would be subdivided among individual countries in proportion to their average ■ exports to- Germany during " the three years 1923-31. It was suggested that.the basic duty would be a fiat rate between 50 and 100 marks . for 100 kilos. Th<a effect would.,be to draw Continental butter away from the English market. Dealing with the cheese market, the review states . the quantity efr arrivals had caused a sharp drop in prices during tho past week. Coloured had improved, its position and, instead of a discount of 3s it now showed a premium of 2s per cwt. The restrictions imposed in -tlia meat industry had brought about a filming of values and, as there was. a relationship between cheese and meat prices, it was hoped that the former would benefit by the improved position of meat.* Excessive quantities of .foreign milk powders arrived in England prior to the imposition of the duty on November 15 and tliese stocks would have to be cleared before any improvement in the markets eventuated as a result of the Ottawa on foreign imports.