COMPARISONS.

Auckland Star, Volume LXVIII, Issue 46, 24 February 1937, Page 10

COMPARISONS.

PRICE VARIATIONS.

N.Z—AUSTRALIAN—FOREIGN.

NEW POLICY DEFENDED.

(By Telegraph.—Own Correspondent.) WELLINGTON, Tuesday. Tn his statement defending the Government's dairy produce marketing scheme, Mr. Lee Martin quoted comparisons of the price variatiom of New Zealand and Australian and foreign butters. '•During recent years the general quality of Australian butter has improved, and only a small average price margin in favour of New Zealand has been shown," said the Minister. "The fact that during a particular week the price of Australian has equalled the price of New Zealand proves nothing, because over the past few years the price of Australian has been at times above the price of New Zealand. The average premiums for New Zealand butter over Australian for the past four years have been:—l 933, 1/3 per cwt; 1934, 2/9; 1935, 1/6; 1936, lOd. From the time of the inauguration of the Government marketing policy on August 1 last until the present date the average premium for New Zealand over Australian has been 8d per cwt, with Australian in relatively short supply. Thus there is no evidence whatsoever to support the suggestion that New Zealand has lost any price margin over Australian as the result of the present marketing policy.

"The premium for New Zealand butter over Siberian butter per cwt during the past three years has been as follows:— 1934 1935 1036 October 5 0 5 0 SO November 40 30 00 December 20 4 0 7 0 "Xo Siberian butter was imported into the United Kingdom during January and February in 1935 or 1936, and the small quantity now available is attractive to blenders because of its lower moisture content. The quality of Siberian butter has improved substantially. The London manager of the Department reports that the present marketing system has had no influence whatever on the trade and the price of foreign butter, and that there has been no chnnge in the method of handling foreign butter. Danish Advantage. "A price premium is paid for Danish butter because of its particular flavour and texture, and because it is fresh made (not frozen and stored as in the case of New Zealand). The Danes built up a good market in the North of England, for their butter by providing regular weekly supplies of uniform high quality. New Zealand, by improvement in quality and in regularity of supplies, has been steadily overcoming the advantage* of proximity to the market enjoyed by the Danes, and outlets have been found for increasing quantities of New Zealand butter year by year. "A comparison of the Danish butter premium per cwt over New Zealand butter is as follows:—

193435 1033-36 1936-37 s. d. s. d. s. d. October .... 44 0 12 0 23 0 November .. 46 0 22 0 14 0 December .... 52 0 35 0 14 0 January ... 36 0 25 0 18 0 February ... 28 0 36 0 36 0 Averages ... 41 0 26 0 21 0 "Compared with Dutch butter and I Baltic States butter, New Zealand this year shows more favourable prices than during the previous two years, and the comparison of Danish butter margins which has been quoted entirely disproves any suggestion that the present market policy has led to a widening of the Danish price margin over New Zealand. "It has been suggested that the present market price of 83/ per cwt for New Zealand butter i« due wholly or in part to the present marketing policy. The advices received by the Marketing Department show that the market is dominated by unusually heavy stocks in store compared with the stocks last year. The unexpectedly heavy imports of Northern Hemisphere butter* during December and January prevented any decrease in accumulated stocks.

Larger Shipments. j "Actually imports from Northern Hemisphere countries and from the Argentine were 5700 tons above last year for the five weeks ended January 20, the principal increases being:—From Russia, 1700 tons; Netherlands, 1300 tons; Denmark, 1100 tons; Baltic States, 800 tons; Argentine, 600 tons; Finland] 300 tons; Sweden, 200 tons. Small decreases have been registered from Poland and two or three of the less important suppliers. "While this Continental type of butter is available, the increased demand which we look/for in the Midlands and the North for New Zealand and Australian butter at this time of the vear is retarded, and it is perhaps surprising that the wholesale and retail trader has been willing to buy 80 much New Zealand and Australian recently to hold in store. "The drop in price applies to all butters, and it is expected that the lowering of the retail price of butter in London from 1/ to lid per lb will stimulate consumption and result in a better market position. The following comparison of prices per cwt shows that similar market price movements were experienced last year:— Oofntw.* 1936-37. October 119/6 99/2 102/ 108/6 December 89/6 100/5 January 92/ 95 ' /5 February 93/ W/2 "During the third week in March, 1836, the price fell to 80/ per cwt. The retail price was then reduced from 1/ to lid per lb, and a better market followed. Thus ;ii experience of the market this year is very much in line with the experience last year, with the difference that ilie drop in price duo to heavy arrivals has come a few weeks earlier this year. It should -be remembered that during the 1934-35 season the wholesale price of butter fell to 65/ per cwt."

1935-36, . 119/6 . 102/ 89/6 92/ 93/

1936-37. 99/2 108/6 100/5 95/5 91/2