DAIRY PRODUCE PROSPECTS

Taranaki Herald, Volume LX, Issue 143786, 9 May 1912, Page 4

DAIRY PRODUCE PROSPECTS

THE INFLUENCE OF A HIGHER STANDARD OF LIVING. EXPANDING MARKETS. . There is no subject of greater import to the individual dairy farmer, or more deserving of consideration from the view point of the Dominion’s prosperity than that of the future market prospects of butter and cheese. It was recently declared by a market authority in Britain that when the Russian Government has perfected its policy of establishing the butter industry in Siberia, the dairy farmers of the overseas dominions'will require to market their butter at fifty per cent, less cost than they do to>Ulay. Then it is declared that the present perfection of the process of margarine manufacture must ultimately have a most serious effect on the butter trade. Let us consider the first of these problems. It is undoubted that ilio possibilities of butter production in Siberia are enormous. There is available fast areas of fertile country, said to be ideal for milk production, which is now being made available to Russian peasants on the most modest terms; State assistance is on an almost lavish scale—implements supplied on a time-payment plan, the best expert advice provided, assistance rendered in establishing factories on the co-operative principle, and every facility afforded by means of cool trucks and freezing works at the port of shipment, to secure the marketing of the butter in the best condition, 'ilio Russian Government is prosecuting a vigorous campaign of settling the peasants from tbe more congested districts in Siberia. Perhaps the best idea of the possibilities ot the butter industry may be gained from the fact that the business of milk production is thriving—the figures showing tho exports of Siberian butter indicate a splendid expansion—while the farmers are only making at the most 30s per cow in the season, and this notwithstanding that they receive practically the same return as the butter producers of this country. While these facts are admitted the truth of the contention of the Loudon authority referred to is not by any means proved. He lias quite overlooked the fact that the standard of living is everywhere on the increase, and that while tho tendency in many European countries is towards . a decreased production, the consumptive power is'steadily advancing, the diversion of Russian and Danish butter from British to European markets is inevitable, especially' when the masses have a larger share in political matters, and succeed in breaking down tariff barriers, framed in tho interests of the agrarian classes, which make imported farm produce too high in price at present to warrant its importation. A remark passed by a Smitbfield meat salesman recently is

very significant in this connection. He said that when the restrictive duties on meat were removed by Germany (and it is not very improbable, by tho way, that the elections in the Fatherland this year may determine the allimportant question to us of taxation of foodstuffs) the whole of tho Danish bacon product would be diverted from British to German markets. At the present time the duty on cream imported into Germany is very much loss than the duty on butter, with the result that the imports of Danish cream into Germany is increasing at a great rate, ami, oven if the high German duty on butter remains, the (fffect of the Danish cream importation must have a powerful influence on the British market in the near future. Kvou France—which was not so many years ago one of the most important.sources of the British butter supply—is requiring year by year more of its butter for lot'll! needs. Only this season Australian butter was shipped to France, where the butter market had been un-der-supplied for four mouths. At the time of the shipment butter was worth Is 9d per pound. The shipment was a decided success, and a very much greater quantity of Australian butter could bare been absorbed. These several facts go to show that there is not the menace in tho Siberian butter development some people would have us believe.

As to margarine affecting the consumption of buttbr in Britain, this,, too, is very much open to doubt. True, margarine consumption is on the increase at .Homo. The Groat -Maypole Dairy Company, which has hundreds of shops in Britain for the sale entirely of butter (and margarine), eggs and tea, returned a dividend to its shareholders last year of no less than a hundred (100) per cent.. This remarkable dividend was due, so the writer was informed by a high authority in this country who spent several months in 'London, investigating the dairy produce business, to the profits secured from the sale of margarine. To digress, the Maypole Company owes much of its success to tho principle of uniformity. It has its own tea plantations in Ceylon, but tho eggs and butter- it sells arc all of Danish origin, but they aro sold, of course, as Maypole butter and Maypole eggs. "While

the Maypole experience goes to prove that the margarine business is a very lucrative one, and therefore payable to push by the trade.

Wo have tho significant fact that the advance in the standard of living in the Old Country is all in favour of tho legitimate article. In one of Weddeks lust reports it was stated that the advance in wages to the artisan class, as a result of the late strikes, lias had a marked effect on tho margarine trade. With better wages, the working class concerned are demanding butter in ‘preference to margarine. If this tendency is noticeable now, it should be more significant in future years. Another interesting phase of the dairy produce Business is the marketing of New Zealand butter and cheese, under false trade descriptions. This does not affect cheese, but the sale of butter under its true designation is n problem which is apparently very difficult of solution. The legislation recently introduced into the British Parliament may eventually have the desired, effect. This measure provides .that the name of the country of origin shall be branded upon every package whore possible, even on the article itself whore this can be done, before it is exposed for sale

Tiie question arises: Is it possible to prevent blending? From the British traders’ point of view blending is imperative. Especially is this the case, in view of the rapid development of the multiple shop companies. Take the consumer of Britain. The incomes of the great mass of the people are on a much more fixed basis than they are in this country. As a general rule they can only afford to purchase a

certain priced butter, some having to lie content with lid butter, others Is butter, and so on. Yet butter is subject to mors violent fluctuations in price than any other food commodity. The grocer has to meet the position by blending, for he must bo able to supply- his different grades of customers with butters to suit their pockets. If New Zealand advances to a high level, he is perforce compelled to use more Siberian in his blending operations. Then it is to his great advantage to have his own brands. Take New Zealand butter. Ho can only secure thisat certain periods of the year, and then cannot always depend on securing supplies of certain brands from season to season, owing to the fact that few New Zealand brands are marketed consistently through the same channel. The advance of the multiple shop principle naturally increases the blending business as these concerns (which have branches now right throughout the provinces as well as in London) make a feature of their brands of butter, and these brands must be maintained at a, fairly uniform price and a uniform quality from year’s end to year’s end. It is not considered at the Home end that there is anything wrong in blending, but to the New Zealand producer it is quite a different matter. Yet it seems hopeless, in view of the facts before us, to expect that any reform, will will ensure New Zealand butter being sold under its correct designation, will be possible. It will hardly be possible to attain the desired end until we are in a position to supply the London market right throughout the year.

Viewing the whole position, there appears to be no grounds whatever for anticipating that tho value of choice butter,on Home markets will ever fall below a point payable to New Zealand producers. The only cause for anxiety is that tho quality of our butter will decline, and, in view of our distance from the great oversea markets, it is more imperative with us than with any other exporting country, that we should produce an absolutely clean-flavoured and good-keep-ing butter. Given butter of 'a high standard, wo have apparently no need to roar any rival.—New Zealand Farmer.