DOMINION BUTTER

Otago Daily Times, Issue 25443, 26 January 1944, Page 6

DOMINION BUTTER

POST-WAR BRITISH MARKET COMPETITION FROM MARGARINE (N.Z.P.A. Special Correspondent) LONDON, Jan. 24. New Zealand butter on the British market after the war, and its relation to margarine and butter from other countries, is a subject of vital interest to the Dominion’s dairy farmers, and one to which there is at present no clear answer. There is not the slightest doubt that the hold margarine has gained by the great improvements in its quality and its relative cheapness will be dominating factors. For the greater part of the war Britain’s weekly ration has been four or six ounces of margarine at 9d a pound, and 2oz of butter at Is Bd’a pound, with the result that the public has become accustomed to eating more margarine, which many think tastes little or not at all different from butter.

While this enforced habit is likely to continue among a large section of the public—and margarine may be coloured to suit various tastes and vitaminised—there is the other possibility that many associate it with wartime restrictions, and would be only too pleased to break this habit. But the quantity of butter which will be available will certainly be limited in the immediate post-war years. Both Australia and New Zealand production has fallen during the war, and the influx of troops to fight the Japanese when Germany is defeated will increase the demand in both the dominions and the Pacific war theatre. While there is every likelihood that margarine may have to be supplied in large quantities and liberated to Europe, there is the possibility that the large, wellmanaged supplies of raw materials for making margarine may allow; a fairly quick stepping up in production. Rationing Likely to Continue

It is likely that both commodities will continue to be rationed,in Britain for the years immediately following the war, but whether the rationing of margarine will be lifted before that of butter is at present difficult to foretell.

There is also the position of European butter to be considered, particularly Danish, which eventually can be expected to reappear on the English market. A possible indication of how long this will take may perhaps be drawn from the experience in the years immediately following the last war. Then it was seven years before Denmark was able to rebuild her herds’ and her production, and even then sha never recovered her pre-1914 export to England. It is known that Denmark’s butter production has fallen sharply since the outbreak of war, due chiefly to lack of feeding stuffs, and that the cow population has fallen slightly. It seems fairly safe to express the opinion that the rebuilding of the Danish output is likely to follow. the trend of 1918-25. It may also be directed for use in the liberated countries.

It is known that Holland’s herds have been very, severely reduced, partly due to the removal of Dutch farmers and dairy herds to Poland. It seems unlikely that the Dutch will be able to regain a foothold on the British market for a number of years, while there is every possibility that supplies of Baltic butter will not reappear in Britain. Good Market for Some Years It seems, therefore, that there will be a good market in Britain for Australian and New Zealand butter during at least five or six years after the war, but that it will have very keen competition from margarine. An important factor will, therefore, be the price, and there is support for the view that the price of butter should,be kept as low as is economically possible to compete with margarine from the viewpoints of taste and habit as well as price, and margarine may be sold at prices ranging from 5d to 9d a pound.

One fear is that if butter went up to 2s 6d or more it might allow the low-priced margarine to stabilise ;or increase its hold on the public habit, whereas if it remains at Is 8d or even lower it would do much to encourage the public to buy. it in preference to margarine. In regard to cheese, New Zealand is still Britain’s biggest supplier, and there seems no reason why it should not continue to be.