PRODUCE PRICES

Bay of Plenty Times, Volume 49, Issue 7764, 5 August 1921, Page 4

PRODUCE PRICES

TENDENCY STILL UFWAi! DS. Wellington, August 3. 1 nquirio-s that arc reaching New Zealand ft cm the United Kingdom for blitter ..nd cheese indicate thf.v (he tendency of prices is Ft ill upwards. Factories could sell next ecaron’s output? .at prices very ranch higher than seemed probable a few months ago, but it appeal? that they ar? in no hum- tc do bn.iness. The severe drought in .1 trite.in and in. parts of Wedern Europe is producing conditions that are likely to be verv favourabl to the Ne w Zeeland dairy industry. An offer ot roughly 11 la per pound ter next season’s eh.esc has roach ;! New Zealand. This is LI per pound more than the Lost price paid be the Imperial Government during the period of the war contracts, tut factories arc net being advised to ta.ccpi u. The price mentioned represents on a parity basis about 132 s per cw*. in London, where New Zealand cheese lias been quoted within the last few days at from 132 s to 134 s per cwi., with a tendency upwards. Canadian cheese is quoted at from 133 sto 140 s per cwt. s In eon.M.l.jting these prices it lias to be remember :d that the season of maximum production is closing " on the ollm'r side of the world, and, that winter prices will shortly be ruling in Britain. It is not considered likclv that Now Zealand exporters will nuke many contracts in the immediate future. They probably will prefer to watch development;;. The but cider so far received for bnltrr is .-fated to have been 2s. equivalent to 2s Id per pound, f.o. ■ b,, fur a p riori ending October 31 .next,. This oiler apparently is based on the current London quotation for New Zealand first and second grade, of from 259 s to 262 s per cwt; It represents roughly 2s 4d t per pound in London. The Imperial Government’s ex-store price for butler bought under t|ie contract that expired on March 31 last is at pi. sent 2s tv. per lb., and exporters arc of opinion that (hey can look for a l etter price for the new seasonV butter. /

A reporter who made inquiries on the ftubjet t was informed that the men most c’o-~ly connected with the trade del not believe that 2s Id nor lb. f.o.b. was the British buy rs lari word. The upward ■movement in the butter and cheese im-rkMg is a very good thing for Kcw 7. ala'n! aka whole, since' it means that the aairy indi:-:ry will be .able again to counteract to some cirtviit the rff • ts of the slump in the wool and mo t markets, but tbo rise in export values is going to involve the local con.-umers into paying an increased price for butter.

Ihe subsidy of 2d per lb; now being paid by the Government on butter sold for local consumption will not be continued after the end of this month, and the local price will then requir: to be fixed on'a basis of export ialue. The offer of 2s Id per lb, f.o.b. represents a local rctad price, cash over the counter cf not less than 2s -Rj per lb. ib' merchant' and retailers believe that that margin ought to be linger, and they arc likely to jenew their agitation on this point. As 3ocu as (he producer gets a compltucly Re* market the Government will not interfere with export values but it will main som,- control of tjic profits made between the factory and th:- consumer within New Zealand.