The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGMONT SETTLER. THURSDAY, MARCH 5, 1914. THE DAIRY INDUSTRY.

Stratford Evening Post, Volume XXXVIII, Issue 54, 5 March 1914, Page 4

The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGMONT SETTLER. THURSDAY, MARCH 5, 1914. THE DAIRY INDUSTRY.

Hie dairy produce export of New Zealand lias now assumed very large dimensions and the welfare of the industry has become a very important part of the country's business. All along we have found a wonderful expansion in the world's markets, the excellent quality of New Zealand's output having maintained a very high place. But at the same time it does not do to overlook the fact that the pressure of competition from other countries devoting their attention to the export of dairy produce is growing keener. Not long ago the general manager of a leading Co-operative Society in New South Wales made a report after a lour of Canada and the ! nited States, and according to him, the Canadians and the Americans are likely to prove very valuable customers for the colonial dairy farmer. The enormous and rapidly increasing population of North America is always 1 short of butter during the autumn and winter, for the local output of dairy produce is not expanding in any sort of proportion to the demand. We can hi 1 certain, therefore, thai the demand in this direction is not likely to' decline; and at the same time there are special advantages to be secured: by the colonial producer in trading! with North America. The distance asi :ompared with the voyage to the ; British market i.s short, and in siipplv- ; iii'j; the Americans the producer can! sell direct to the retailer, and not to I 1 he middlemen. The efforts made of late by Canada through her reciprocity 'reaties, and by the United States ' through reduction of the tariff, to build ' ■ i)) fresh trade connections with the \ ' mtside world, cannot fail to react • J lenefieially upon Australia, and of ■' •onrse New Zealand must in a measure' , lenefit. In America it seems fairly I •ertain that the dairy farmers of this • ■ountry will find a certain amount of.', ustoni, which may reasonably be exacted to develop. P>ut the possibility if keener competition from rival counties who are now paying more atten- ' i -

tion to the dairying industry, lias to be reckoned with. The authority referred to above, however, considers that while theoretically such countries as Siberia and the Argentine contain practically unlimited potentialities as regards the export ol' dairy produce, in actual fact these possibilities are not likely to be realised. Kor the basis of international exchange is the principle of comparative cost, which means that every country tends to produce and exnort those commodities in which it has the greatest relative advantage. Xow, Siberia might be able to put good butter on the British and American markets at a lower figure than New Zealand or Australia, but she has a greater comparative advantage over; us in the production of wheat, and: therefore she will leave dairy farming to us and stick to grain-growing. Simi-j larly the Argentine might easily be con-j verted into splendid dairy land, but j the country has even greater natural facility for the breeding and rearing of sheep and cattle; and therefore the Arm-lititie will prefer the meat trade] to the dairy industries. This appeara reasonably sound argument, and so far as one may at present judge, the outlook generally is a good one for the future of Australasian dairy produce in .North America.