BUTTER IN CANADA

Wanganui Chronicle, Volume 74, Issue 244, 15 October 1931, Page 9

BUTTER IN CANADA

INCREASED PRODUCTION MORE SALES OVERSEAS DEPENDENCE UPON IMPORTS An interesting review of export and import butter trade of Canada during the year ended June, 1931, together with a review of prospects for the new season, is contained in a report furnished by the New Zealand Commissioner for Canada, Mr J. W. Collins, to the Department of Industries auc Commerce. Tho commissioner stated that increased production of butter in Canada during the .12 months ended on Juno 30 was followed by a considerable increase in sales overseas, particularly to the United Kingdom. Exports during the past season amounted tu 3,13fi,0001b, of a total value of approximately £160,000, compared with 1,129,7001 b, valued at £99,000, in the previous 12 mouths. This increased production and export had been influenced by the increased duties imposed on milk and milk products by the United States, which had reduced the exports to the United States of milk from 2,656,832 gallons in 1929-30 to 1,024,560 gallons in 1930-31, and of cream from 2,016,442 gallons to 720,607 gallons. Importations of butter into Canada in the 1930-31 period showed a marked decline, falling from 44,859,0601 b, valued at £3,008,000, in 1929-30, lo 8,708,9161 b, valued at £490,000. In considering these totals regard should be paid to the fact that a considerable quantity of butter imported from August, 1930, when the change in the Canadian duty became effective, was carried over to the next period. Growth in Consumption The final report of the Canadial Bureau of Statistics showed that the total butter production in 1926 was 260,810,2301 b, consisting of 170,810,2301 b of creamery butter and an estimated volume of 90,000,00111 b of dairy butter. The preliminary report for 1930 showed a total production last year of 187,151,2471 b of creamery butter.

The estimated, total consumption of butter in 1927 was 273,421,0701 b, rising yearly to a total of 301,095,6741 b in 1930. Allowing for an increase in population of from 9,519,000 in 1927, to 9,934,500 in 1930, the annual consumption per capita showed a steady growth, the figure rising from 28.721 b in 1927 to 30.311 b in 1930.

‘ * Canada was dependent to a considerable extent upon outside sources of supply during the years 1929 and 1930, and 1 am led to conclude that, in spite of the increased production of 1931, overseas butter will be needed during the approaching winter,” continued Mr Collins. ‘ * The importance, however, may be influenced by several factors chiefly by the market for grain and the lessened buying power of the people. Low Market Prices “If prices for grain show strength then it will not be available for feeding cattle during the winter as was the case last year, and the production of milk must inevitably fall. The buying power should not be less than last winter for the reason that steps are being taken throughout Canada relieve unemployment during the

approaching winter, the Federal Gov eminent having undertaken, with the aid of the provinces and the municipalities to provide work for all suit able applicants. The quantities being exported during the present season, and the rapid deterioration of domes tic butter under cold storage, may lead to the creation of a demand in January, 1932.”

In conclusion, Mr Collins mentions that during the Canadian summer of this year the wholesale price of butter had been very low, ranging from lOd to lid per lb. Invariably the price for Now Zealand butter on the Eng lish market had been higher, demon strating that it would not have been possible to develop a market in Canada irrespective of the tariff. The return for butter-fat to the Canadian fanners proved disappointing and un remunerative, especially to producers in tho prairie provinces, who had tG pay high freight rates to the markets of the East and West.