NEW TARIFF ON BUTTER

Taranaki Daily News, 1 August 1932, Page 12

NEW TARIFF ON BUTTER

BRITISH FARMERS’ DESIRE CONTINENTAL DUMPING FEARED CURB ON BLENDERS WELCOMED. (From a Correspondent.) London, June 23. The announcement in' (he newspapers to-day that three of the leading British agricultural organisations —the National Farmers’ Union, the British Dairy Farmers’ Association and the Central Chamber of Agriculture—have each applied to the Tariff Advisory Committee for a new duty on foreign butter comes as a complete surprise to those who imagined that the British farmers have lost all interest in butter production as a serious commercial factor. It also shows that the primary producers are not content to have their urgent problems shelved on the - plea of the imminence of the Ottawa Conference, but demand the same consideration as has been accorded to the urgent problems of manufacturers, e.g., the recent review of the silk duties.

Thanks to the excellent relations existing between the representative of the New Zealand Dairy Produce Board in London and the .various British agricultural organisations, it has been possible to make forceful representations to the latter regarding the effect on the Empire dairying industry of the import restrictions recently imposed by various European countries, namely, Germany, France, Holland, Belgium and Switzerland. Chiefly as a consequence of 'the new German butter quotas and tariffs, which aim at the drastic reduction of supplies from external sources, it is almost certain that in the next ■ few weeks there will bo a substantial increase in the amount of butter sent by Denmark and otther foreign dairy exporting countries to the British market. As supplies from the Southern Hemisphere show no sign of diminution/butter prices seem to be marked out for a further fall unless emergency defence measures are'taken. ,

EFFECT OF LOWER PRICES. ■ -v* • ■ ■ The situation is summarised in . a memorandum compiled by the Empire Dairy Council for the information of Members of Parliament, which, states that the probable \effects of a further fall in butter prices will be (a) a general fall in the price of Home milk manufactures; (b) diversion of Canadian milk from butter manufacture to cheese manufacture; (c) depression of cheese prices caused by the general tendency to change from butter to cheese, and (d) further reduction of the capacity of the Dominions-to buy British go.ods. Apparently the Home farmers have realised the cogency of these arguments, for the National Farmers’ Union has demanded an ad valorem tariff of 33 1-3 per cent., and the British Dairy Farmers’ Association and the Central Chamber of Agriculture, acting in concert, a specific duty of 20s. a cwt. /

Far-seeing representatives of the dairying industry are not at all sure of the wisdom of the higher tariff, since they realise that the creation of a gap in supplies might result in a sudden upward surge in prices and jeopardise the prospects of a satisfactory permanent solution of the tariff problem at Ottawa. On the other hand, it will be disastrous alike to Home and Dominion producers if there is any appreciable further drop in prices in consequence, of foreign dumping. By the time this letter reaches. New Zealand the Tariff Advisory Committee will doubtless have given some indication of its intentions.

WELCOME TO BUTTER MARKING. The Butter Marking Order has been tn operation-for six days and its reception by the grocers pf the country must have come as a shock both to doubters and to opponents of this long overdue reform. During the past few days the London. agency of the New Zealand Dairy Produce Board has been completely inundated with applications by grocers for the marking discs issued by the board. At the time of writing 11,000 applications have been received, ,and it is safe to say that thousands more are in the post. There was some blunt speaking at a meeting of the Sunderland Grocers’ Association. One member, describing the marking order as “a piece of very fine constructive legislation,” urged that grocers should asl< for no quarter. “It is going to bring the unfavr traders into tine and put an-end. to the juggling in butter that was being carried on in certain quarters,” he added. Another member raised a pertinent query as to what happened to the regular arrivals of 10,000 to 20,000 casks of Swedish butter. Where did it go, and how was It sold? There were, he said, some very “fly” men in the. butter business who had been “getting away with it” very successfully, and these would be scotched by the marking order. Even the Grocer, hitherto an implacable opponent of the order, winds up a judicial editorial with the remark: “In regard to the Sale of Food (Weights and Measures) Act, some of those who came to curse reniained, to bless. Will history repeat itself in- respect of the Butter Marking Order?” As for the blending firms, which were vociferous in denouncing the order as unworkable and impracticable, some are taking whole-page advertisements in the trade Press in order to impress on the grocers that all the legal requirements of the order will be complied with, that their butter will conform to the last globule to the description on the packet, and that they would not touch butter with a ninety-foot pole. So now everything in the garden .is lovely,- and we may leave it to our vigilant food inspectors to watch the wily lesser fry who are reputedly the real menace to the successful administration . of the order. IMPORTS STILL HEAVY.

The Boa|d of Trade returns just issued show that during the five months ended May 31 butter came into the Home market in undiminished quantities. Total imports amounted to 3,389,409 cwt., compared with 3,229,660 cwt. in the corresponding period of 1931, while values continued to drop (from £19,050,726 to £17,754,292). During May there was a sudden spurt in Danish butter exports to the United Kingdom oi nearly 40,000 cwt., representing an increase of 13.7 per cent, on May, 1931, and 37 per cent, on May, 1930. This tendency has been maintained during June, despite shrinking production in Demark, aud it is, therefore, apparent that prophecies regarding the diversion of butter to the United Kingdom as a result of the raising of import barriers on the Continent are being substantially justified.