BETTER DAIRY YEAR

Poverty Bay Herald, Volume LXIII, Issue 19139, 7 October 1936, Page 2

BETTER DAIRY YEAR

PAST SEASON IN REVIEW BOARD’S ANNUAL REPORT HIGH DANISH PREMIUM The high premium secured by Danish butter over Mew Zealand j in( V steadier market prices for the former l. the subject of comment in the annual report of the New Zealand Dairy Board. New Zealand butter gradings for export during the 1935-36 season incicasw bv 7.69 per cent, and cheese, decreased bv 7.63 per cent. On a bmterfat basis there was an increase of 4.014 per cent, taking both butter and cheese. . “It is many years since tho Dominion has experienced' a production season during which weather conditions have been so varied.” states the report. 1 autumn, however, was phenomenal reason of maintained production.. .Although cold spells were experienced early, the abundance of teed kept tho production at a high level, and the sustained delivery of dairy produce t northern grading stores was most reinarkablo.” FLUCTUATIONS IN MARKET For butter, there was a. distinct improvement in tho prices realised, muthe 1934-35 season the estimated average price of butler sent to the United . dom was 80s per cwt. For 19oj-o6 ' - estimated average price was 955, equal t n New Zealand currency to 105 sld pei CWt, i’.O.b. Tile season opened at August G with prices in London at 93s to 945. Ihe price advanced steadily from .August. l to October 19, when the recorded price was 122 sto 123 s for salted. From that point, prices gradually receded up .1" March 21, 1936, when the lowest point for the season was reached, viz., 80s to 81s, when prices began steadily to nova nee, moiling 112 s at. the middle of June, dropping again to 105 s at the end of June. During July the market rose to 109 s, but at July 31 stood at, 116 s. Tln-salted butter manufactured totalled 6714 tons, an increase of 1767 tons. Prices showed greater variation than usual The premium on Danish butter as compared with that sent, from New Zealand and Australia was most marked, and, viewed from this end. seemed difficult to justifv. During the 1934-35 season tho premium for Danish at the highest point, was 665, and the. lowest 10s. whereas; for the 1935-36 season the. highest premium was 46s and the lowest 7s. Flic price of Danish did not appear to be subject to tho same fluctuations as the colonial, and tho margin between tho highest and lowest points was 48s. There were now no subsidies or restrictions in connection with the export of-dairy produce from Denmark, a recognition that the position of the dairyfarmer in that country had improved. CHANGING FOOD HABITS

The trend of cheese prices, the report state?, had also been difficult to understand in recent years. The total importations of butter into the United Kingjdom over the last 10 years had almost doubled, whereas with cheese the total quantity imported oyer the same period had remained practically stationary. Despite that, eneese prices had fallen just as much, and as frequently, as the prices cu butler. There was a growing belief that the food habits of the people of Great Britain were gradually changing, and that, the tendency was along the lino of a. reduction in wind iriay be called the heavier foodstuffs, which include cheese. The increase per capita consumption, which was so noticeable in button, was entirely lacking with cheese.

The premium on Canadian cheese as against New Zealand had not. been maintained to the same extent for the 193536 season. The Canadian output also continued its steady decline, while Canada was expected to make larger .shipments of butter to the British market. . . The number of cows milked in tho Dominion for tho 12 months of 1935-36 was estimated at 1.850.000. compared with 1,827.000 actual for the previous 12 months.

DAIRY BOARD FINANCES

LARGER INCOME SURPLUS

Tiie accounts of the New Zealand Dairy Board show an excess of income over expenditure of £2967, as against £164 in the previous year. The report states that the total net levy collected on butter and choose exported amounted to £79,290, and after adding interest. from investments, amounting to £SOO. there, was a total reventie of £79,790, ns against £77,638 in the previous year. The cost of management at, the head office, Wellington, was £8826, and in London £9336. Exchange on remittances to London for advertising and office expenses was £9458. Expenditure on shipping supervision, shipping work at the branch offices in Auckland, New Plymouth, Lyttelton and Dunedin, “Exporter,” board meeting expenses, etc., absorbed £13,044. The payment toward the cost of research from the industry was £74CQ, against £4900 the previous year. The subsidy to Caw thro n Institute was reduced to £lO5, and after a similar payment next year disappears from the accounts. Advertising in Great Britain absorbed £23,548, bringing the. total expenditure to £76,823, compared with £77.474 in the previous year. The report also reviews fully the changes made since the Labour Government took office and gives full details of the new regulations, together with particulars of the prices guaranteed by the Government from August 1. 1936.

in the advance of last- week, the pi ire returning to 100 s. equal to llfjd per lb., f.0.b., or over Jrl- per lb. .below the guaranteed price of 12 9-16 d. Cue interesting feature of the market is that, Australian butter, usually ]s per cwt. below New Zealand, is quoted, today Is per cwt. higher. This may be explained by the fact that stocks ot Australian butter are very low at. present, totalling' only 795 tons, compared with 5274 tons of’ New Zealand, at the cud of last week. Messrs. A. U. Turnbull and Company, Limited, report Inlying, received the following cabled advice from Messrs. AN. Wed del and Company, Limited, wider yesterday's date : —“Butter. —Danish, 1245; New Zealand,- 109 s; Australian, 101*. Cheese. —New Zealand, white 70s. coloured 665. Both markets an* depressed.” A vear ago, New Zealand butter was quoted at Fl7s to 118 s. Australian 116 s to 117 s. and Danish 128* to 1.30*.