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The Daily News WEDNESDAY, JULY 22, 1925. DAIRY PRODUCE OUTLOOK.

At- this time of the year, when the new season for dairy produce draws near, the directors of co-operative factories have generally to face the serious questions as to whether butter or cheese prospects are the more likely to prevail; also whether they shall sell outright, on the spot, consign to London agents, or await the trend of the market. It will be noticed that in last week’s review of trade at Home it was stated that the continuance of the dry weather there and on the Continent had the effect of increasing butter and cheese prices, with the result that New Zealand and Australian butter continued to harden in price, despite the slight weakening of Danish. The reference made to the large quantities of dairy produce in store in the Old Country was made light of in view of the expanded demand by the consumers, an optimistic note being struck by the statement that all this stored produce will be needed. What is of still greater importance is that the trade forecasts firm prices both for butter and cheese foi* some time to come, and it is as well that the producers should give due weight to that forecast, because it is based on the law of supply and demand. Evidence of this optimistic outlook is to be seen in the fact that already offers are being made locally at favourable prices for dairy produce for the first few months of the coming season. Just what effect such offers will make upon the directors of the co-op-erative factories remains to be seen, but in view of the success of the consigning policy last season, and the ouflbok for the ensuing season, it would seem, that the sellers should not be in too much of a hurry to deal with their supplies; rather should they weigh well the probabilities of the near future, and by concentrating on raising the quality of the produce be in a position by consigning to obtain the best prices on the Home and other markets. On the whole the prices for last season have averaged fairly satisfactorily, and it looks as if its successor will open with comparatively bare stocks, hence the producers may reasonably anticipate payable prices. Experience has fully demonstrated that exceptionally high prices for butter and cheese, are not in the best interests of the producers. Of course they benefit while they last, but the invariable drop that ensues counteracts the gain and does much harm. The consumers can only make their purchases to the extent their means will permit, so that* if the price of New Zealand butter and cheese is out of their reach they will be compelled to obtain substitutes they can afford to buy, and if they have to. get ■ accustomed to the inferior article the producers will be the sufferers in the end. Nothing, however, is more sure

than that if the quality of our produce is raised to the highest possible level there will be no fear of it not fetching the highest price. It is pleasing to note that the amount of last season’s output of butter-fat showed an increase that will have an appreciable effect in the returns obtained, being a fraction over five per cent. This faet should have a stimulative effect upon the dairy farmers in the direction of cow testing and culling the unprofitable members of every herd, replacing them by others of high producing power. The effort that is being made to bring about a complete system of testing is one that should be crowned with success, for it will pay, and pay handsomely. The more it is brought into practice, the sooner will its effect on the butter-fat yield be translated into money; therefore, as a business proposition it' is all that can be desired. The time has passed when any sort of a eow that .will give milk can be regarded as a dairying asset, and, judging from the success of the sales.of high producing power cows, it should not be long before only such animals will be seen in Taranaki herds, for the prices of such stock are rapidly coming within the purchasing power of all enterprising dairymen. The only way to meet competition is by an increased production of butter and cheese of the highest grade, and that is a matter which all those dependent on the industry can see to for themselves. Happily the present outlook is encouraging to all such efforts.

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/TDN19250722.2.22

Bibliographic details

Taranaki Daily News, 22 July 1925, Page 6

Word Count
757

The Daily News WEDNESDAY, JULY 22, 1925. DAIRY PRODUCE OUTLOOK. Taranaki Daily News, 22 July 1925, Page 6

The Daily News WEDNESDAY, JULY 22, 1925. DAIRY PRODUCE OUTLOOK. Taranaki Daily News, 22 July 1925, Page 6