BUTTER AT 122/.

Auckland Star, Volume LXVI, Issue 238, 8 October 1935, Page 9

BUTTER AT 122/.

DOMINION FINEST. PHENOMENAL ADVANCE. 3/ ' JUMP OVERNIGHT. From 119/ yesterday, the price of New Zealand finest butter 011 the London market jumped overnight to 122/, a phenomenal rise which will probably be reflected this week in an increase in the Dominion retail price. Advices received this morning state that the advanced price for butter as far ahead as the shipment by the Rangitiki, due at London on December 23, is 1/I'J per lb, which is a farthing higher than it was yesterday. At this time last year the price was 70/ for finest and 00/ for first grade. A representative of a leading firm of British importers of dairy produce stated this morning that the rise was probably due, in part at least, to heavy buying by Germany of Danish butter, which would otherwise have been sold on the London market. Last year Germany had erected a high tariff barrier against imported butter in order to stimulate her own production, and had imported none at all. Her home production, however, had not increased as much as had been' expected, and last week she had bought 20,000 tons from Denmark. "How high the price will go or how long the higher prices will rule cannot be prophesied," stated the exporter.

"As the price of butter in England rises many people 'change over' to margarine, the sales of which have also shown a phenomenal increase in recent months. Stocks of butter held in England at present arc, however, only 831,110 tons from all countries, as compared with 1,540,000 tons at this time last year. From now until November 23 New Zealand will export 1,028,000 boxes—s93,ooo this month and 435,000 next month. It is going out as fast as possible, remaining in store only for the three days that is necessary for proper freezing."