DAIRY TRADE OUTLOOK

Poverty Bay Herald, Volume LIX, Issue 17919, 25 October 1932, Page 2

DAIRY TRADE OUTLOOK

TRENDS IN BRITAIN RISE IN EMPIRE IMPORTS MARGARINE SALES LOWER Prospects in the New Zealand dairy produce export trade were reviewed by I Mr Wi Goodfellow, ex-managing director of, the New Zealand Co-operative Dairy Company, in a speech at Ngatca ,qn,th.e ocasion of the presentation of the Weddel Cup for butter and the Hardley Cup for cheese, which were recently won by the Ngatea and Waitakaruru dairy factories of the company respectively. Mr. Goodfellow referred to the increased use of butter in Great Britain instead of margarine. He expressed the opinion that the outlook for substantial markets in other countries was not hopeful, but said that there were indications of reduced exports of dairy produce from the Continent to Britain, with consequent benefit to Empire suppliers. Mr. Goodfellow emphasised the supreme importance, at the present time, of maintaining the quality of New Zealand dairy produce at a high level. , He stated that the whole of the Danish and Irish, 90 per cent, of the New Zealand and 60 per cent, of the Australian butter imported into Great Britain, was now classed as table butter, while practically all other butters were blended and lost their identity. GAINS BY EMPIRE BUTTER The ever-increasing supplies from Empire countries had during the past year, for the first time, exceeded in quantity the foreign butters imported into iho United Kingdom. With the aid of the Ottawa tariff this preponderance was likely to increase substantially. Britain had regained her pre-war figure for butter imports in the year 1922. During the past 10 years the quantity had r|oubied, and now exceeded 400,000 tons 'annually. The annual per capita con 1 sumption of butter at present was 20.661 b, and of margarine 9.251 b, making approximately 301 bin all, as compared with the New Zealand consumption, unefer normal conditions, of 331 b. The increased consumption of butter in Great Britain within the past decade had been almost entirely at the. expense of margarine. Butter had risen by 2.521 b per capita per annum in the past two years, and margarine had fallen by 2.41 b. Margarine retailed at 6d, Bd, and lOd a pound, and could only be displaced by butter of good quality. In the" same two years the imports of Empire butter into the United Kingdom had increased by 70,000 tons and those of foreign butter by 20,000 tons, if substantial additional supplies were exported ..from New Zealand and Australia in the coming season, the additional foreign tariff would not raise !prices so long as foreign shipments were maintained. EASTERN TRADE UNPROMISING Referring to the need for new markets, Mr. Goodfellow stated that Amalgamated Dairies, Limited, had spent considerable time and money during recent years in. investigating every Sible alternative market for New and dairy produce. The result proved that there was no worthwhile alternative to the United Kingdom. Eastern markets had an extremely low purchasing power per unit at present and the standard of living in those countries would, have to rise considerably before <da,iry produce from New Zealand could be sold in substantial quantities. Again. Australia had an advantage of 15 per cent, in the matter of exchange and could undersell Now Zealand to such an extent that it would be almost impossible to do business. Dealing with the economic position, Mr. Goodfellow stated his opinion that there were likely to be some radical changes in European affairs within the next 12 months, and that present indications were for a great writing-down of all war debts by the United States, Britain and France, with a simultaneous great scaling,down of European tariffs. This, he said, would give British finance and trade an immediate opportunity of regaining a large proportion of the country’s lost trade. In such circumstances Europe would buv heavily and consume more of the produce that at present was being dumped upon the British market. The result was calculated to give an impetus to world trade and to provide an expanding market for Empire produce. NEED FOR, LOWERING COSTS The economic position of Canada and (he United States was infinitely worse than that of New Zealand, owing to the •'ireat loss of foreign trade that had resulted from extreme tariffs. However, drastic steps had been taken and efficiency had been increased, while both wages and prices of goods had fallen considerably, and were more in line with primary produce prices than was the case in New Zealand, where the wages of manual workers were in many cases about £9 per cent, higher than in the United States. |f New Zealand was to hold its own against competing Empire countries, a substantial reduction in prices of goods would have to be brought about by an all-round lowering of import, duties, which in turn would justify further wage reductions. The farmers must be encouraged to increase production.