DOMINION PRODUCE

Manawatu Standard, Volume XLIX, Issue 241, 10 September 1929, Page 7

DOMINION PRODUCE

MARKETS IN BRITAIN. j INFLUENCES ON POSITION. MR PACEY’S IMPRESSIONS. The opinion that the operations of new interests on the dairy produce market in England, countering the policy followed by the multiple stores, were likely to be influential in favour of the producers was advanced by Mr H. E. Pacey, of Palmerston North, when interviewed by a “Standard” reporter to-day, after his return from an eight months’ trip abroad. As a director of Messrs. Joseph Nathan and Co., _ Ltd., Mr Pacey made numerous inquiries in England and. other countries relative to tho dairy industry, and gained some interesting impressions. “In connection with the butter market,” stated Mr Pacey, “I deprecate the fact that the regular buying from day to day, which characterised business in Tooley Street some years back, has now, to a considerable extent given place to the intermittent buying 'by the multiple stores. Those organisations operate principally when the market is favourable, and cause feverish conditions for a time, these usually being followed by a period of inactivity and intense depression. Many of the wholesale produce merchants ‘have been forced by circumstances to adopt similar speculative buying, although many would prefer to be relieved of the hazard imposed thereby. A HOPEFUL FEATURE. “The trend in this directiqn,” Mr Pacey added, “is noticeable in other businesses besides those handling dairy produce, although it is represented in England that the movement in dairy produce circles has been accelerated by the market control policy which has characterised the last few years. One of the hopeful features is that a number of' wholesalers and importers have combined for the purpose of feeding the market from day to day at the quotation which is current from day to day. “Regular business on these lines will assure a better average price to the New Zealand producer. The change is a welcome one. It is being closely watched and will probably be extended. Meanwhile, the present combine is in touch with 15,000 free shops, mostly in the South of England, where the New Zealand dairy produce is best known, and the new method is likely to have a favourable and satisfactory trial. SEASON’S INDICATIONS. “When J. left London it was too soon to form an estimate of the prospects for the coming season, but the indications were that the butter market would open quite firm, but that there would not be the same speculative demand for cheese as characterised operations at the beginning of the preceding season. Those firms which speculated heavily in cheese a year ago lost enormous sums of money. The Canadian market for butter will certainly be larger than in recent years and will probably absorb a considerable quantity of New Zealand produce; The consumption of this Dominion’s butter is spreading from the coast to the middle provinces and its use in Canada promises to be fairly general in certain seasons of the year. The quality of New Zealand butter' is greatly esteemed in Canada, and it was gratifying for me to hear, among other things, that Canada liked to deal with New Zealand because she could depend on the quality being right and upon engagements being satisfactorily observed, showing that the traditional word of the Englishman is honoured. “You seldom eat good butter in the -United States,” continued Mr Pacey, “and little New Zealand butter is used there, for by reason- of the tariff conditions at present there is a duty of 12 cents on New Zealand butter and determined efforts are being made to have it increased. The issue will probably be decided about December next.

EFFECT OF UNITED STATES TARIFF. “In conversation with a prominent dairyman in the United States, I pointed out that the high tariff meant virtual exclusion of this country’s produce, and that, if the policy was continued, it would create _ economic conditions making it impossible for us to arrange for large purchases in America. Further, I stated that the economic influence might bo forfeited by the objection of the people of New Zealand to one-sided trade. In reply, he commented that the danger was to his knowledge fully appreciated by the President of the United States, whose influence he believed would be exerted in favour of a moderate policy. OPENNESS IN CHEESE. “In England,” said air Pacey, “there were widespread complaints of the openness in cheese. This was more or less general, and in connection with some factories there was evidence of serious laxity in factory operations which had resulted in very poor packing. The latter complaint could and should be remedied by the exercise of greater care. The complaint of openness is the more important, however, and will very likely be dealt with at an early date by Mr \V. Singleton, the Director of the Dairy Division, who is expected to return shortly from abroad. “Without being afforded the opportunity of making a close study of agricultural methods in England,” proceeded Mr Pacey, “it was evident that some notable experimental and demonstration work was being carried out in England, but generally the standard of agricultural practice .is considerably below the general methods in New Zealand. Milking machines are almost unknown, and the use,of farm separators is not by any means general. Most of the farms have not agricultural implements equal to those used in New Zealand, and they are more dependent on manual labour than is the case in this Dominion. In France, some of the States of America, and a few districts in England the use of the silo is more general than in New Zealand, in which respect 1 think this Dominion might increase its efforts with advantage. “To a certain extent the co-opera-tive principle is practised in other countries, though perhaps not as much as in New Zealand, while it is different, m some of its organisation. The position may be summed up _by saying that the co-operative syste"m is adaptable and satisfactory to the dairy industry in other countries as well as m New Zealand.”