DAIRY PRODUCE YEAR

New Zealand Herald, Volume LXXIII, Issue 22400, 22 April 1936, Page 9

DAIRY PRODUCE YEAR

TURNING POINT REACHED UPWARD TREND OF VALUES FUTURE OF BRITISH POLICY The year 1935 will be remembered as the turning point in the butter market after a long period of declining values due to continued increases in imports to the British market since 1927, according to the annual review of the dairy produce trade, issued by A. J. Mills and Company. Limited, London. The firm states that fortunately the halt in the trend of ever-increasing supplies coincided with a much improved purchasing power, with the result that consumption of butter at the low values ruling overtook the supply. There has been a steady and progressive improvement in the general trade of Great Britain during the past year. Although the number of people out of work is still very high, the actual number of persons employed is greater to-day than at any time in the history of the country. . There is still considerable uncertainty as to the future policy of the British Government concerning agriculture. Tho Ottawa Agreement, and most of the foreign trade agreements, expire shortly and the sooner a long-term policy is decided upon the better for all concerned. Many foreign countries are still subsidising the uneconomical export of produce to the British market, in order to substantiate figures as a basis for bargaining. This policy cannot continue for ever and it is reasonable to expect that, if the fear of eventual quota restrictions was removed, many countries would lower the price to the home consumer, which would quickly reduce the quantity available for export to the British market. Consumption of imported butter in Britain during 1935, after adjusting stock in cold store, averaged 9192 tons weekly, which was practically the same as in the previous year. Average prices realised during 1935 showed an improvement of about 26 per cent on Australian and New Zealand butter, and 14 per cent on Danish butter, fcompared with 1934. An encouraging feature for the future of the market is tho increased volume of international trade in butter during the past year. Imports of cheese during 1935 showed an appreciable decline, due almost entirely to a marked shrinkage in New Zealand production. The decline in imports has been partly offset by an increase in home production, but the total quantity available for consumption was roughly 8000 tons less than in 1934. Cheese consumption seems less affected by price than any other staple article of food, as during the last 15 years consumption has hardly varied 5 per cent in any one year, but price is governed by the prices of other competitive foodstuffs. BUTTER MORE ACTIVE NO CHANGE IN PRICES The London butter market is more active, according to a cablegram received by Joseph Nathan and Company, Limited, yesterday from its London principals, Trengrouse and Nathan, Limited. New Zealand finest is quoted unchanged at 85s to 86s per cwt. Cheese is quiet at 53s 6d per cwt. for white and 54s for coloured. DAIRY INDUSTRY MOVE FOR RATIONALISATION ACTION IN THE MANAWATU [by telegraph—OWN correspondent] PALMERSTON NORTH, Tuesday One of tho first results of the move that is being made for the rationalisation of the dairy industry in the Manawatu is that the Makowhai cheese factory has been closed and the whole of the supply will bo diverted to Rongotea. Negotiations regarding the zoning of supply and prevention of overlapping are, it is understood, also proceeding between other companies. Last year the directors of the factories operating in the Manawatu invited the Executive Commission of Agriculture to undertake an economic inquiry into the dairy industry in this area. Mr. J. Westwater, internal auditor of the New Zealand Co-operative Dairy Company at Hamilton, and Mr. C. H. Courtenay, secretary of the Eltham Dairy Company, were appointed to make a detailed survey, and their report was presented recently when sub-committees were set up to give effect where possible to tho recommendations that were made. TE AWAMUTU SEASON INCREASED MARCH OUTPUT [FROM OITR OWN CORRESPONDENT] TE AWAMUTU, Tuesday Dairy farmers in the To Awamutu district have experienced a very favourable season, and the summer with its frequent warm rains has brought about a high butter-fat output. The effects of the conditions are reflected in tho experience of the To Awamutu Co-operative Dairy Company, which in March dealt with an output 26 per cent in advance of the amount handled in the corresponding month last year. With farmers credited in most instances with an advance pay-out fully id in advance of the figures ruling in March, 1935, the larger production has proved invaluable to producers, who were recovering from the difficulties of depression years. Supply has been very consistent, and tho heavy showers experienced over the week-end, in conjunction with mild temperatures, have again stimulated pasture growth. The falling-off in production which is customary in April has not been so marked as in previous years, and the majority of herds, grazing on perfect autumn pastures, are maintaining excellent supply figures. AGRICULTURAL SHOWS SOUTH AUCKLAND DATES [by tei.egraph—OWN correspondent] MORRINSVILLE, Tuesday Tho South Auckland Conference of Agricultural and Pastoral Associations, held at Morrinsville to-day, fixed the following tentative show dates for submission to the Northern Conference of Show Societies at Auckland later: — Waikato, at Claudelands, November 13 and 14; Thames Valley, at Ta» Aroha. November 17 and 18; Te Awamutu, February 13; Franklin. February 19 and 20; Katikati, February 27; Tokoroa, March 3; Matamata, March 6; Morrinsville, March 10; Waikato Central, at Cambridge, March 12 and 13; Putaruru, March 20.