DAIRY PRODUCE TRADE

Taranaki Daily News, 21 November 1932, Page 12

DAIRY PRODUCE TRADE

BRITISH MARKET POSITION. FALLING PRICES EXPLAINED. The remarkable expansion in the imi port butter trade of Great Britain is . commented upon by W. Weddel and 3 Company, Limited, of London, in its 3 annual review of the dairy produce market for the year ended June 30, . 1932. 3 The ' review states that the total ims ports for the period amounted to 412,863 r tons, compared with 360,254 tons in 1930r 31, an increase of 52,609 tons, or 14.6 per . cent. It continues: “In the past 10 years ; the imports of butter into Great Britain > have more than doubled. No wonder ; prices have fallen to the lowest level i for nearly 40 years. The wonder is that ; this vast quantity of butter, in addition i to. the comparatively insignificent Home . make, can be absorbed into the trade and consumed in the present economic state ; of the country. This was only possible by reducing the retail price of butter to ’ a point where it came into strong competition with margarine. With first-class butter selling on the counter at Is per lb., the sale of margarine during the past year must have declined seriously.” Out of the total imports of butter last year 209,815 tons, or 50 per cent., came from British Empire sources,, as compared with 48.5 per cent, in 1930-31. In spite of steady progress in butter export by Denmark, and to 3. smaller extent by'other foreign countries, supplies of Dcvniniryn butter still maintain their relative position in this market. The total quantity of cheese imported during the year was 144,667 tons, as compared with 152,888 tons in 1930-31, a decrease of 8221 tons, or 5 per cent. Canada sent 37,583 tons, an increase of 4575 tons, and New Zealand 85,482 tons, a decrease of 11,120 tons. These two countries practically have the market to themselves. I Foreign supplies were also smaller for the fifth year in succession at 17,680 tons, as compared with 19,205 tons in 1930-31. With reference to the position of the British market the review . states:— “Throughout the whole year . Britain’s export trade was, hampered at every turn by restrictions in the form of high tariffs, quotas or controlled exchange, and by commercial, financial and banking disasters in many importing countries.- On the other hand the production of primary products expanded on a scale out of all proportion to the world’s consuming capacity. Our markets were flooded with foodstuffs and raw materials which were pressed for sale by weak holders upon unwilling buyers at a rapidly descending scale of prices. In spite of every possible economy, there can be no doubt that selling prices to the producer of many commodities are now well below the cost of production, and until this has the effect of reducing, production to within the consuming capacity of the importing countries we cannot hope for permanently better prices. As far as Great Britain is concerned nothing but a great increase in our export trade can provide that reduction in unemployment which is necessary before there can be any material increase in the spending power of the British public.”