SALE OF DAIRY PRODUCE

Southland Times, Issue 23978, 20 November 1939, Page 6

SALE OF DAIRY PRODUCE

Proceeds From Deal With Britain CHEQUE WILL BE MORE THAN £22,000,000 (Special to The Times) AUCKLAND, November 19. A cheque for, approximately £22,750,000, New Zealand currency, will be received by the Government for the butter and cheese which it has agreed to sell to the British Government. This should be at least over £2,000,000 more than was obtained last year to July 31. The average value of New Zealand butter and cheese sold to March 31 during the nine years 19311939 was approximately £18,140,000 per annum. The price obtained for this season’s butter on a New Zealand currency basis is 7|d per cwt. over the price guaranteed to the dairy industry and 1/2.04 per cwt higher in the case of cheese. A comparison between the British Government’s average purchase price and the basic price guaranteed to the farmer, f.0.b., New Zealand currency, is made in the following table:— Average Basic Purchase Price Guaranteed Pries per cwt. per lb per cwt. perib sdd s d d Butter 139 7.25 15 138 11.6 14.89 Cheese 79 9 8.5 78 6.96 8.42 The chief problem facing the industry at present is to maintain production at the high levels it has reached in previous years. Any further decrease, of course, will mean a corresponding reduction in the proceeds to the country. Output has shown a progressive decline over the past three years due to unfavourable seasons, difficulty, in securing farm labour, and a steady rise in costs. The current season, which commenced on August 1, has been even less favourable and for the opening months the dairy output showed a fall of slightly over 11 per cent, on last year’s reduced figures for the corresponding months. The quantity of "butter and cheese graded in the Dominion during the last three years ended July 31 is as follows:— Year to ‘Butter Cheese July 31 (Tons) (Tons) 1937 154,564 88,222 1938 142,835 85,470 1939 122,272 81,507 ‘lncludes unsalted butter as follows:— 1937, 7396 tons; 1938, 6812 tons; 1939, 4440 tons. The average price'of New Zealand butter on the London market for the year ended June 30 was 116/6 per cwt, sterling, against 113/10 per cwt,’ sterling, for Australian. The average price of New Zealand cheese was 66/6 per cwt and Australian 63/6 per cwt, sterling, the premiums in favour of New Zealand being 2/8 per" cwt and 3/- per cwt, sterling, respectively.