DAIRY PRODUCE.

Auckland Star, Volume LVIII, Issue 46, 24 February 1927, Page 4

DAIRY PRODUCE.

LONDON BUTTER MARKET. NO IMPROVEMENT IN SALES. DESPITE LOWERED PRICES. Although the New Zealand Dairy Produce Board lias lowered the minimum selling price for butter by 8/ per cwt,, there ha?, so far, been no apparent improvement in the demand. This information is contained in a cablegram received from Dalgety's London office. In this connection it may be noted that, although the board expends large pums of money for matters •.1 publicity, dairy farmers of the Dominion are still dependent for dlily news concerning market prices and conditions on the news furnished to the Press by various mercantile firms. 'I'he board's reports are usually several days behind the advices received from other quarters. The following report has been received from the New Zealand Dairy Produce Board, dated, Wellington, February 22: — Sales in London. —For the fortnight ended February IS, 1'.r27, the following quantities of dairy produce under control of the board, have been sold: —

Butter.—Creamery, 45.549 boxes; average price realised, 173. 6; Whey, 343; 15311; Cheese, 24.140 crates; 03 '.

Butter graded up to the end of October lias not yet all been sold, although some of the November gradings have been sold. This is due to the fact that some steamers carried produce belonging to the first poo! as well as produce graded in November. Further, while the loading of the final October gradings was completed approximately at the same date at all ports, the steamers carrying this produce varied considerably in their final tailing dates. Cheese.—The quantity sold represents gradings into the fourth week of October.

Later. —A cable has just come to hand from London advising that the pric» of salted butter has been reduced bv 8 ' ner cwt.

SOUTHERN CRITICISM

BOARDS TOLICY CONDEMNED.

The '•Mercantile Gazette'' in its issue of February, contains an article dealing fully ■witli the present position, which concludes as follows: —

The board appears to be following the policy adopted by the dairy factories in the past season or' holding up supplies for high reserve ju ices and which led to many of them having to meet reclamations. When the board was selling 30,000 boxes weekly, holding up the price was no doubt justified, but when sales were reduced to a little more than half, the proper course it would seem would have been to lower the prices and encourage sales. The London agency has allowed the butter to go into store rather than meet the market, and thus what was feared bymany is happening. The board is not marketing the dairy produce in an orderly manner, but is endeavouring to dictate to the trade the price that should bo paid. This is exactly what the factories did last I Reason with disastrous results, and the Dairy Control Board is certain to meet with * similar experience. What the London agency and the board in New' Zealand have failed to realise is that it is impossible for any producing country to fix the selling price of any commodity unless such country had a virtual monopoly in Supply, which New Zealand does not possess, for her contribution to Britain's Dutter supply is only about 22 per cent. Indeed, if New Zealand and Australia combined they could not fix prices for butter. There is very great reason for being concerned, if not alarmed, at the position of New Zealand's butter trade. The present price of 174/ cannot be maintained in the ia.ee of the accumulation of stocks, and one wonders whether the board will be forced like the dairy factories were last year to accept 136,/ to 140/, and whether there will again be claims for reclamations.