BUTTER PRICES.

Auckland Star, Volume LII, Issue 25, 29 January 1921, Page 7

BUTTER PRICES.

STEEP DECLINE EXPECTED.

AFTER DECONTROL. SUPPLY EXCEEDS DEMAND. (By Cable.—Press Association.—Copyright-) (Received 12.30 p.m.) LONDON, December 28. A furtheT steep decline in the price of butter is anticipated after the Government control of the market is removed. The Food Ministry's stocks axe mounting rapidly, and it is generally estimated that the stock in hand at the end of March will be about 30,000 tons, to which must be Added part of the February and all the March shipments. It is likely that the Ministry will have to carry 50,000 tons over the summer. In the meantime the supplies greatly exceed the demand. This is owing to the almost entire cessation of buying on the part of Germany, Scandinavia, and the other European countries, with the result that practically the whole of the Danish output is available for Great Britain. The imports into Great Britain from Denmark have increased fourfold, and are now 1000 tons a week instead of 500 tons a fortnight. '

it is anticipated that the imports from Denmark will be jrreatly increased after March, when the English and Irish makes will also be in full swing, so that the Ministry -will have little chance of reducing etocks.

The decline in the price of copra and seed oils has caused tie lowering of the price of margarine, wnich Ls now being retailed at lid to 1/ a pound. Many people ■prediot that the retail price of butter will be 2/ per pound 'before many months, so that it appears that the Australian and New Zealand producers will be faced with a comparatively low baeie of values when the new "season opens^ —(A. and N.Z. Cable.)