THE BUTTER MARKET

Waikato Independent, Volume XXIV, Issue 3230, 10 June 1924, Page 4

THE BUTTER MARKET

FUTURE PROSPECTS.

ARGENTINE A SERIOUS COM!PETITOR.

Primary production is the basis of all things as far as our Dominion is concerned, and anything that stunts or bars its continued progress is of vital interest to us all. Of all primary pro-, duetion dairying is first and foremost, and it is univorsally recognised to be the backbone of the country—butter especially. Though there have been, many little difficulties in the organising arrangements for our butter to enter the Home markets, it has always been a matter of solid satisfaction that yearlv oiitputs have been entirely absorbed!' 1 • * ••ijf.fi'r. at Home at financially sound flguaiv But whether such conditions are to tinue is the vital factor for consideration by those who control the export 6f the Dominion's surplus output, and it is a matter that, at present is creating some uneasiness. At the present moment thero is tho fact that, due to the. economic conditions on the Continent of Europe and tho laek of purchasing power, increasing quantities of butter are being placed on the Homo markets. It is not this factor alone, howevor, that the Dominion has to contend with. There are rumours that Siborian butter will again enter the Home market during the present English summer, and on top of this we have the serious aspect of a formidable rival for butter in the Argentine. ... Commenting on the latter contingency ;it the annual re-union of the Fencourt suppliers to the Cambridge Dairy Company on Friday evening, Mr F. Lye, M.P., said that the Dominion would now have to contend f with -o.no-of _tho most powerful British combines of modorn times, an organisation of vested interests including such a firm as Vestey's, and a number of the leading packors and dairy importers of the world. This combine, with a capital of eight millions, had . recently purchased the Blue Funnel line of 22 refrigerated steamers, and was out to exploit the Argentine to the hilt. Already there have been investod forty millions of British capital in the industry in the Argentine. ... Immed: iately upon the passing of the Dairy Export Control Bill Tooley Street interests sent out a delegation to the Argen- . tino with, trade representatives, and in ono week disposed of over 2000 milking machines. "That delegation," said Mr Lye, ' \ was sent with a view to the investigation of the possibilities of the Argentine, and tho Dominion has got to prepare to face the increasing.competition by the Argentine for butter in the. Homo markets." ~ '..;■

Continuing, Mr Lyo said that if competition at Home became-too I severe the Dominion would have to look further afield for markets for and. the countries of the East offered a fop. fresh, ventures. Such scope in Japan with its 48 millions of people fr .f, and the Duteh East Indies with 56, millions of population. With the great change of these countries to western ideas and customs they were rapidly becoming {c westernisod.'' At the present Japan is buying heavily in Australian and Dominion wool, and there was every reason to believe a splendid market for butter could be opened up. It is a fact, continued the spoaker, that to-day New Zealand butter is being packed in tins in Australia and sold in Singapore and many places in the East. Just how much Dominion butter was being sold under such conditions it would be difficult to ascertain. Some of it was certainly being retailed" with." a. worded label that it was New Zealand, butter, but tho fact romained that a •'•• quantity was being sent to these countries. Surely, said Mr Lye, we are capable of handling such markets ourselves and thereby obtain the results of sucht *