DAIRY PRODUCE.

Taranaki Daily News, 26 October 1921, Page 8

DAIRY PRODUCE.

CONDITION AND PROSPECTS. EFFECT OF HEATED SHIPMENTS. (Wellington Post’s Correspondent.) London, Sept. 6. At the moment the general position in the butter market is very slow. This condition is no doubt largely due to the last rise in price imposed by the Imperial Government. This h held ro have been altogether unjustified, and, in the result, it stopped the sale of butter an{i forced the public to transfer its demand to margarine. On August 26 the price was as high as 262 s per cwt., and this involved an advance to the consumer first of 4d per lb., and then of another id. However, recognising its error, the Government has since reduced the price by 20s per cwt.,' first and second-grade New Zealand descriptions being now quoted at 2425, because purchases at the advance absolutely stopped. And men who understand the position say the general impression is that in order to clear Government stocks as well as to dispose of the big accumulation of Dutch butter cow on the market, the price will have to come down another 2d per lb., representing a drop in retail rates from 2s ‘dd per lb. to 2s 4d; and it is not improbable that there may have to be a still further reduction of 2d, representing a retail price of 2s 2d per lb. large HOLDINGS.

It is stated on reliable authority that stocks of Government-owned butter are still something over 30,000 tons, and it is probable that a good proportion of this is from New Zealand and Australia. No secret is made of the fact that on the Government purchases last year of New Zealand and Australian butter the losses will amount to an enormous sum of money. Be it understood, however, that the Government is not “grousing,” for it had planned to be liberal in its dealings with Australasia, frankly admitting that it had the best of the deal alike before and during the war, not only as regards butter, but cheese too. So it contracted with the farmer for the 2s Gd per lb. rate But when the contract was made for the whole of the season’s output, it was not foreseen that the quantity available would be so large as it proved to be.. Both countries practically doubled their output, and no doubt the surprise locally was as great as it was here. Evidently the anticipated output was based on previous figures, and even in the countries concerned, it was not realised that so great a number of people in localities suitable for dairy farming were tempted by the high prices of butter and cheese to turn from sheep farming to dairying. No one suggests, of course, that there was any conspiracy to double the output, but the fact remains that the last season was a pro-

lific one, and that the Imperial Government for this reason must lose heavily over the transaction. The time has gone by when the public will pay unduly high prices for their butter. When they did this during the war they had the money to spend, and it was not uncommon for them to pay anything between 3s 61 and 5s per lb., though the rationing allowance then could only be reckoned in ounces. Now their spending power is very considerably curtailed. Further, it has to be remembered that there are several excellent varieties of margarine which are retailed at about Is to Is 4d a lb., and to this the public now willingly transfer their patronage when butter prices soar. At present they think twice before paying anything more than in the neighbourhood of 2s. THE OUTLOOK. New Zealand producers, it was remarked to me by one possessing an intimate knowledge of the markets, will bo lucky if they get an advance of about Is Gd per lb for their butter on consignment, and if they do they ought to have a reasonable surplus of profit when the goods are sold. When the butter arrives on open consignment, it will be offered in competition with the general market, and its principal competitors will be Australia, the Argetine, and Denmark. There is at present a very big accumulation of Danish butter, and this is being sold at lower than the Government price for New Zealand. Danish butter can to-day be bought at 240 s per cwt, while the ’ Government price for New Zealand, as already mentioned, is 2425. FACTS ABOUT CHEESE. New Zealand cheese has had a setback during the last few weeks, the prices having receded from 135 s to about 120 s for white, and 116 s for colored. Trade has been very slow. The retail figure of Is 4d per lb is above a popular price, and it is quite possible that it will have to be reduced to Is 2d in order to sell the supplies coming forward. At the moment the stock of cheese in store at Montreal is approximately 220.000 boxes, and the stock of Canadian cheese in this country is somewhere in the neighborhood of 200,000 boxes. These figures are slightly in excess of the normal for the time of year. There are about 57,000 crates of New Zealand cheese in this country now, as well as 4600 tons of this variety afloat to be delivered, and it is anticipated that the first arrivals of the Dominion’s new season’s make should be here about the first week in December. It is doubtful whether the existing stocks and those on the water can be cleared at the present retail price of Is 4d. IN BAD REPUTE. New Zealand cheese is under a cloud because so much of its has been arriving in a terribly heated condition. The. consequence is that it is very difficult to find purchasers who will entertain New Zealand. Provincial buyers, especially in the big centres like Liverpool and Glasgow, won't think about it at all when they can got Canadian, and it is very unlikely that the reputation of New Zealand Cheese will be redeemed before the new season’s make begins to be marketed. There are a great many

complaints about its condition, and several claims on insurance companies are pending. Undoubtedly, a great deal of it must have been held up on the other side in very indifferent storage, and it arrived here in a deplorable state. As a consequence, Canadian make of good quality, landed in a perfectly cool condition, is preferred, and it fetches 10s per cwt more than some New Zealand makes, owing to the condition of the latter. For the best selection, however, the prices of New Zealand and Canadian cheese are on a level. The quotation of Canadian cheese has come down during the last few weeks from 130 s e.i.f. to 110 s e.i.f. At the moment the market has a slightly firmer tone, and it is not anticipated that the price will come down much more in the immediate future.

By business men the view is expressed that it is a mistake to insure in New