RAPID DECLINE IN VALUES

Taranaki Daily News, 25 September 1930, Page 12

RAPID DECLINE IN VALUES

THE DAIRY PRODUCE MARKET. VARIOUS INFLUENCES AT WORK “There has been much speculation as to the causes of the rapid decline in values of dairy produce,” writes Mr. JI. E. Pacey, Palmerston North, in a special commentary attached to the annual report of the Palmerston North Chamber of Commerce. . “The great increase in production in New Zealand and elsewhere is,” he says, “without doubt one of the causes, and another is the curtailed spending power of general consumers due to unemployment and other adverse economic conditions. . “In addition to these inevitable causes, attention might be directed to other influences which, though less apparent, may nevertheless be potent. There are indications that competitors are gaining ground upon the English market at our expense. The wide margin which now prevails in favour of Danish butter and Canadian cheese as compared with our similar products is pointed to as one of the evidences thereof, while the lessening of the premium which New Zealand butter has enjoyed over, say, Siberian butter is another indication in the same direction.

‘•'Some reports suggest that these are reactions from the policy of marketing control which has, in recent years, been associated with New Zealand dairy produce marketing policy, and that some important trading interests are now allowing their earlier preference to be diverted from New Zealand produce to that from competing countries whose marketing policy is more acceptable to them. The new season is, from a pi oduction point of view, opening up very favourably, and the spring output promises to be a record one. ’