DAIRY EXPORTS.

Poverty Bay Herald, Volume XLVII, Issue 15595, 11 August 1921, Page 8

DAIRY EXPORTS.

FREF MARKET CONDITIONS. EXPORT FREIGHTS. ISlierial in me Herald.l WELLINGTON, Jhis day.. Two important factors, in tho coming season's dairy production were dealt with by representatives of tlie North and Soul It Island factories hero yesterday. The question of the conditions local oi marketing hatter when the. subsidy system ends mi August. 3J was fully discussed,' and a policy settled which will !„■ ofliciallv announced when Ihe details oi finance'are known. It. was obvious to the producers.' representatives thatunder the current financial conditions the Government is unlikely to Continue the srb&idv or even an equalisation-scheme. Therefore the whole discussion is sii'id-to Icivc pnv.cedod on the sure assumption that, there would he a. free market, after I his month. The only possibility oi Slate interference" or oversight is in connection with the adjustment of the return to distributor* and retailers after tlie butter leaves the factory. In this connection the Hoard of Trade, will perform a. useful service in viewing Ihe conditions from the point of view of export parity. ' It seems as if butter may rise a penny a. pound locally in a. free market, subject, however, to retailers being satisfied to accept the present margin. The'butter committee, in conjunction with the dairy exporters, interviewed the shipowners'- representatives in the hope of securing a reduction of freight during the coming season. Cheese, shipped outside the Imperial requisition has had tn bear treble pre-war freight. The matter was not finally settled, but it seems clear Hint no reductions are liVf'y d 'ring the. opening months of the

season, thoigh shipowners are prepared i re i.icMci- the position in January if lhe running costs diminish." Owing to the discouraging conditions for exporting oilier lines of New Zealand products Iho dairy representatives were * not so 1 are as in former seasons of a. regular service to lift iho outputs as mainlinelured. They can only ensure regularity by making a contract with the shipping companies. This is under consideration by a sub-committee, including producer?, from bulb islands. THE NORTHERN DROCOHT CAUSES OPTIMISM. The drought conditions in the Northern fleini.'iphere causes New Zealand dairy producers to be optimistic about the. coming season's returns. London reports certainly promise high prices for early butter shipments. However, ■if high prices prevail, Australian competition is. likely to be keen, as the Commonwealth product, (hough not so uniformly high in quality as New Zealand, will he in heavy supply. Fears of an export, value equivalent to Is 6d v per lb. 1'.0.b. for butter for August-September shipment were, experienced a few- weeks back in Victoria, and sellers in Adelaide a. few days ago .offered batter of the current, season's make'at Is 6d per.lb. f.'o.b. Adelaide. This action caused a perturbation in the bullous butter-producing districts of Victoria at. the time, and hs late as 30th .Inly Melbourne was importing butler at Is 7d to Is 8d for domestic consumption. The latest reports by mail from Queensland show that, the winter production has exceeded all records, that 95C0 boxes a. week are already available for export after meeting all local requirements. New South Wales has experienced severe losses in the north coast dairying districts from Hoods,' and Mr Rreseott, a well-known authority, reports that it is expected that the quantity of butter manufactured in the near future will he at a minimum. Victorian sapplies wcr® increasing, and by this time should be self-supporting, and she will have an early surplus. Queensland is already exporting to- London, the Westmoreland taking 75C0 boxes. Thus-the! New Zealand butter producer for export; will require to keep a close watch on Australian production and export, especially in view of the experience during requisition years, when butter was : sold at prices much below what New Zealand producers considered it was* worth at the time. Canada as. a cheese competitor is still far from a certain quantity, owing to its drought, conditions. In England and on the Continent, if the early summer has been exceptionally dry, it is possible that production may be extended beyond the usual period. The combined make of cheese in England, Wales, and Scotland is except tionally heavy in normal times, ancjalthough exact statistics, of (he output are not available as to the cheese passing from the farm directly into the market place or lo distributors, it is a. factor that, the New Zealand producer cannot afford to ignore. The unfortunate drought conditions in the Northern Hemisphere have undoubtedly enabled the Imperial Government to substantially reduce its' losses, made on the purchases of New Zealand and Australian butter, and have also swept, out of Hie way accumulations in st (ires that would have menaced tho future." of the New Zealand and Attslralinn new makes, of. butter had the northevn production been ns 'heavy, as usual. [Per Press Association >'• WELLINGTON; this day. '

The question of freight rates on hul-f ter and i:lifpsp wrist disousse'd 'yesterday nt a. conference of representatives of (ho dairy factories arid associations of. the Dominion, iinrl representatives! of the export houses and shipping interests. No report of t|ip< proceedings was furnished to the press. !i is understood, liovvcvor, Hint if is unlikely therp will bp any reduction in freight rates at (ho present limp, but that (lie whole portion will he reviewed in January next- year. This decision is apparently in line with the agreement, arrived at in London on .Tulv 18, when the committee appointed by Mr Massey's conference of New Zealand producers and shipowners' exhaustively reviewed the position of shipments and freight*! generally from both'-points of view.