DAIRY PRODUCE FUTURE.

Otago Witness, Issue 3885, 28 August 1928, Page 13

DAIRY PRODUCE FUTURE.

NEW’ ZEALAND’S OPPORTUNITY. That New Zealand dairy producers have nothing to fear from European and Siberian competition for several years the opinion of Air A. J. Alilis, chairman of the large Tooley street firm of dairy produce distributors, A. J. AliHs and Co., Ltd. Air Alilis, who arrived in Dunedin last week, has had over 40 years’ importing experience in London and has handled

New Zealand produce in Britain longer than any other English distributor. During the war he was a member of the Alinistry of Food, and was sent to Canada and the United States to buy food supplies for the Allies. Confidence in the growing markets for New Zealand butter and cheese abroad is the keynote of Air Alills’s message to Dominion producers. “ I often her it said,” be remarked to a New Zealand Herald reporter in Auckland a., few days ago, “ that producers wonder what becomes of their butter at Home and doubt whether it actually reaches the consumer as New Zealand butter, but I can assure them practically every retail shop in the United Kingdom is selling New Zealand butter ir the same state and in the same package in which it is shipped from the Dominion. The Empire Alarketing Board is spending £1,000,000 a year disseminating information and advertising Empire products, particularly foodstuffs, and the idea of the crusade is steadily sinking into the minds of the British people. We find more and more evidence that retailers and consumers are taking an interest in foodstuffs that come from the dominions, and in this respect New Zealand is getting its full share of the benefits.”

SATURATION POINT NOT REACHER It might be thought, Air Mills said, that because of the wonderful increase in dairying during the past 10 years, the saturation point had been reached in New Zealand, but he was definitely of a contrary opinion. The dairying industry in New Zealand could continue to expand with the utmost confidence, secure in the knowledge that the world’s demand for dairy produce was increasing. There was no butter or cheese arriving in England to-day that maintained its grading better than that from New Zealand. That was something of which the farmers and factory staffs should be proud. It had been stated some authorities believed butter production was reaching the point at which it would meet undue com-; petition from European countries, especially Siberia, but when it was remembered that imports of butter into Great Britain during' the' last' three years' had shown

practically no increase, it would be seen that the saturation point had not nearlybeen reached. During the latter stages of the war and for the past 10 years the conditions of the labouring classes at Home had been steadily improving and wages were 50 to 70 per cent, higher than before the war. EUROPEAN COMPETITION. The result was the mas of people ia Britain Were buying more good food. Where previously their buying had been influenced by price, they now demanded the finest quality’ procurable, and it was a fact that in the working class districts to-day’ top prices for the best foodstuffs were ruling. Greeted with this increase in demand for good food, coupled with unaltered importations, high-grade butter such as New Zealand produced, must go ahead. Notwithstanding the talk of possible supplies from Eastern Europe and Siberia, •there was nothing to fear in the next few years. Similar conditions to those existing among the working classes at Home prevailed on the Continent, with the result that Germany, France, and other countries showed an increasing consumption of butter. It was thought that this season England would be over-supplied with butter from Siberia and the Eastern European States, but in the flush of the summer-make cables from Home quoted the price of New Zealand butter at 176 s to 178 s. On this evidence alone it could be safely assumed that the butter position was on a sound foundation. OUTLOOK FOR CHEESE. Air Alilis has had a good deal to do with the United States and Canada, and is well acquainted with dairying conditions in those countries. He says the production of butter in the States is hardly’ sufficient to meet the demands of increasing consumption, while supplies of milk and cream, particularly in the eastern States, are not nearly’ enough to satisfy’ requirements. Consequently the United States is drawing more and more milk and cream from Ontario and Quebec. The proof lies in the fact that whereas in 1925 Canada shipped 8000 tons of butter to England, in 1927 exportation had stopped. Speaking of cheese, Air Alilis remarked on the rapidity’ with which New Zealand bad overtaken its only’ real competitor, Canada. It was only two or three years ago since Canadian shipments surpassed those of New Zealand, but last year Canadian shipments had fallen by 20,000 tons, as compared with the 1925 shipments, while shipments from New Zealand had increased during the samfe period by 11,000 tons. The result was that in 1927 Great Britain imported 80,000 tons of cheese from New Zealand and only 42,000 tons from Canada. One of the main reasons for Canadas reduced cheese exports to Great Britain was the increased demand from the United States for firmly-made solid cheese such as Canada and New Zealand produced. The “grinders,” or packet-cheese manufacturers, in the States found their trade rapidly growing, and realised that the cheese manufactured in their own country was not nearly so suitable for their requirements as that to be procured in Canada. CANADIAN CHEESE FOR AMERICA. Canadian cheese was consequently being diverted ovei- the border instead of finding its way’ to Great Britain. This was New Zealand’s , opportunity’, for undoubtedly’ Great Britain would require more and more New Zealand cheese to take the place of that previously obtained from Canada. “ I cannot see any’ prospect of supplies from Canada improving,” said Mr Alilis, “but rather they: will fall further. New Zealand cheese factories, therefore, can go ahead in the greatest possible confidence with the knowledge that their produce will meet a ready demand.” Air Mills made a strong plea for improved relations between New Zealand producers and the distributors at Home. He deplored the attitude of mind which gave , rise to mutual suspicions, and emphasised that only by both parties exhibiting the utmost confidence in each other would the best interests of all concerned be served. “ I have come here to obtain closer association with the ruling spirit in the dairy produce trade,” he said, “as I value mutual acquaintance and the personal touch very;? highly.”