On the Land

Southland Times, Issue 22915, 13 June 1936, Page 14

On the Land

(Conducted by

“The Rambler.”)

THE DAIRY POSITION There seems to be no other explanation of the sudden rise of New Zealand butter on the London market during the past week or 10 days than speculation. It was reported during the week that Tooley Street thought the market was undoubtedly heading for higher prices, that activity was centred on New Zealand produce, and that Australian butter was on a rather quieter market. The difference between New Zealand and Australian cannot be accounted for by difference in quality, because the “Kangaroo” brand is practically equal to the finest New Zealand. It is quite possible that another reason is to be found in the fact that Tooley Street’s direct connection with New Zealand butter ends at the end of the month, and that many merchants are stocking up with the Dominion article in order to supply their contracts. ft will not be surprising if prices improve still further in the next fortnight, but what is going to happen after that remains to be seen. The present prices are most encouraging for th*' industry North Island factories will benefit most, of course, but one effect is going to be to make the dairyman wonder if the guaranteed price, unless it is higher than there is reason to expect, will be worth while It will be stable, but there are manj’ who do not look beyond the immediate future and who prefer to get all that is going while it lasts to an assured lewer price over a period. The margin to be allowed by the Government under its guaranteed price scheme in favour of cheese compared with butter will no doubt be well received. The figure, l|d a pound, was named by the recent conference 01 dairy delegates in Wellington the fixing of that margin being the first of 13 requests to Mr Nash As one delegate pointed out. it would allow a margin of cheese over butter of ,86d a pound butterfat. Cheese suppliers arc entitled to a premium because of the heavier cartage of milk over butterfat and be cause of the handicap which is imposed on them in the raising of pigs or calves. The object of the announcement, according tc the acting-Director of Mar keting (Mr G A. Duncan) was to reassure cheese suppliers who might have been considering a swing-over to butter. Such a switch-over would cer tainly result in complications. The marketing problem, with more butter, more pork and more bacon (which is subject to British import quotas) would be doubled. The question is whether the margin announced will hold the relative productions at the present level. If it is not sufficient there will no doubt be a further trend toward butter and pigs. If ; t is—and it seems to be—it is possible that the cheese output will increase. And that would be a good move, because the Dominion has excellent prospects on the Bri+ish cheese market. New Zealand now supplies about 70 per cent of the British cheese imports, compared with about 25 per cent, before the Great War Great Britain’s butter imports have been doubled in the last 12 years, but her cheese imnorD have not advanced. In butter. New Zealand has to struggle to hold her place. The position of her cheese is a dominant one, and there is a great opportunity for the development of the cheese consumption