OVER £20,000,000

New Zealand Herald, Volume LXXVI, Issue 23507, 18 November 1939, Page 10

OVER £20,000,000

PROCEEDS OP SALE PROBLEMS IN INDUSTRY MAINTENANCE "OF PRODUCTION TREND IN RECENT SEASONS A cheque for approximately £22,750,000, New Zealand currency, will be received by the Government for the butter and cheese which it has agreed to sell to the British Government. This should bo at least over £2,000,000 more than was obtained last year to July 31. The average value of New Zealand butter and cheese sold to March 31 during the nine years 19311939 was approximately £18,140,000 per annum. The price obtained for this season's butter on a New Zealand currency basis is 7id per cwt. over the price guaranteed to the dairy industry and Is 2.04 d per cwt. higher in tho case of cheese. A comparison between tho British Government's average purchase price and the basic price guaranteed to the farmer, f.0.b., New Zealand currency, is made in the following table: Average Basic . Purchase Price Guaranteed Price per cwt. per lb. per cwt. per lb. sdd s d d Butter . 139 7.25 15 138 11.0 14.89 Cheese . 79 9 8.5 78 0.96 8.4-

Tho chief problem facing the industry at present is to maintain production at the high levels it has reached in previous years. Any further decrease, of course, will mean a corresponding reduction in the proceeds to the country. Output has shown a progressive decline over the past three years due to unfavourable seasons, difficulty in securing farm labour, and a steady rise in costs. Tho current season, which commenced on August 1, has been even less favourable and for the opening months the dairy output showed a fall of slightly over 11 per cent on last year's reduced figures for the corresponding months. The quantit}' of butter and cheese graded in the Dominion during the last three years ended July 31 is as follows : Year to *Butter Cheese July 31 (Tons) (Tons) 1937 . . .. 154,504 88,222 1938 .. .. 142,835 85,470 1939 . . . . 122,272 81,507 ♦lncludes unsaltcd butter as follows: — 1937, 7396 tons; 1938, GSI2 tons; 1939, 44<10 tons The average price of New Zealand butter on the London market for the year ended June 30 was 116s 6d per cwt., sterling, against 113s lOd per cwt., sterling, for Australian. The average price of New Zealand cheese was 66s 6d per cwt. and Australian 63s 6d per cwt., sterling, the premiums in favour of New Zealand being 2s 8d per cwt. and 3s per cwt., sterling, respectively.