BUTTER MARKET.

Press, Volume LXI, Issue 18569, 19 December 1925, Page 14

BUTTER MARKET.

NEW YEAR PROSPECTS. <f«NO COLLAPSE IF MARKET REGULATED." (snou w> "the rMSs.") AUCKLAND,, December 18. A depressing view of the London butter market in tho New Tear has been taken locally, because of the very heavy arrivals due in January. When, however, tho first two months of the year are taken into consideration, the- outlook is much better. In January and February New Zealand butter due to arrive in British ports totals 17,458 tons, aeainst 18,596 tons which arrived in the corresponding period of the current year. Thus, instead of abnormal supplies in the next two months, arrivals will actually show a decrease compared with this year of 1138 tons. In commenting on these figures, an Auckland exporter said that they provided the best reassurance against pessimism, if the situation wero handled as it should be handled in the light of statistical evidence. Tf the factories would so regulate supplies in January and February as to cover evenly two months, there need be no fear of a Blump on the London market. To illustrate his point, he tabulated the arrivals during January and February for the coming year and in the previous years as follows:—

Jws'y, FeVy, Two 1026. 1926. months' Average Tons. Tons. Average. Price. 1926 „ 14,208 6,250 17,458 1925 .. 8,225 10,371 18,596 166s 6d 1924 .. 6,359 7,782 14,141 202s 6d 1523 .. 7,179 7,686 1-1,875 1983

The exporter said that these figures showed plainly that the market could be held against arrivals equal to those expected early next year if supplies were distributed. An element of danger was in the very heavy arrivals due in Britain next month, and if these were simply dumped on the market a collapse must be expected. If, however, about 40 per cent, of January's arrivals were held for marketing in February, the position at once became normal, and reasonable prices could be expected. In the opening months of 1923 prices averaged 198s, although arrivals were only about 2500 tons less than in the next two months. Moreover, the average last year was 166s 6d, against abnormally heavy supplies, not only from New Zealand but also from Australia, It was for the producers to make the most of the market, and the regulation of supplies in the next two months was the key to the whole problem. Every shilling saved per cwt in those two months meant £.17,458 to the producers of the Dominion. The position should be looked at from the national point of view, and was one in which the Dairy Board should function. It was created to meet just such conditions and to advise those whom it represented as to the course of concerted action. *The Board must be aware of the position. It must have realised the consequences of January arrivals going up on a regulated market, and also the strong probability that a collapse could be saved if a large proportion of the January arrivals were held back for sale during the unusual scarcity in. February. In these circumstances it was for the Board, in its commanding position, to give a real lead. After detailing statistics which bore on their face such plain guidance the statistical position at the end or the current year should be Quite normal, continued the exporter. There was no ceason to expect any considerable carryover into 1926. Moreover production this season showed a considerable decline, so that if the position in January were handled firmly, the outlook was fair enough. A very much better ieturn was possible by regulation than bv a tacit policy of drift. The details of expected arrivals in the next two months were as follow: —

Due iu January—Dorset, due Ist, 259 tons: Port Haoking, 2nd, 497 tons; ItaranEa, sth, 1376 tons; Port Darwin, 6th. 339 tons; Matakana, 7th. 1967 tons: Port Nicholson, 10th, 1217 tons; llotorua, 12th, 413 tons; Devon, 16th, ]<26l tons; Leitrim, 20th. 891 tons; Otaki,* 20th, 661 tons; Tekoa, 20th, 1957 tons; Port Hobart, 21st 1613 tons; lonio, 27th, 1651 tons; total tor January, 14,208 tons. February arrivals taken from allotments for proposed sailings to Januarv 16th are as follow -.—Suffolk, due February 13th, 647* tons; Port Bo wen, 1023 tons;; Mahana, 17th, 75 tons; Pakeha, 27th. 164J tons; total for February. 325 v tons. When these figuras were examined, said the exporter, ft was found there was no New ZeaWd butter arriving in London between January 27th and February 13th, a matter of 17 days. Aeain, after February 17th, there was a eap of 10 days when on February 27th the Pakeha's 6mall consignment! arrived. If these gaps were filled by auDplies taken from January, the result would bt to hold prices at.* much more level than if tie market were alloweu to take unrestricted course.

N.Z. PRODUCTS IN BRITAIN.

In a letter to the Editor of "The Press," Mr W. J. Wade, the Australian And New Zealand representative of the Manchester Ship Canal Oompany, writing from Sydney on December sth, says that the special efforts now being made in Britain to increase and popularise the British demand for Empire-grown products do not overcome "the rundamental handicap which the bulk of New Zealand produce has hitherto had to overcome in reaching Northern and Midland markets in Great Britain, by reason of marketing being controlled by those whose interests are not necessarily identical with those of the producers, and by distribution through the more or less restricted bottle-neck which shipment to London involves. There are approximately," he adds, "46 millions of people in Great Britain, and the reauirements of at least three-fourths of lie number could be supplied more economically and efficiently by distribution from such ports as are situated nearest to the consumers in their respective areas, instead of following the obsolete system of distributing everything through one port—situat«4 so distant from the bulk of the consumers ,that an enormous bill for handlineand transport charges is inevitable. Having had the administrative control of the markets ot one of the biggest provincial centres in the North of England for many years, I affirnx without fear of contradiction that it is exceptional to hear New Zealand dairy produce mentioned, or see it displayed l in the shops in that area, although many thousands of tons have been shipt»ed to London during the past 25 to 30 years; the opportunities for its sale have always been present, but have not been fully exploited, and the 'gootf-will' which should have been created long ago in the shape of a constant demand is still lacking." He concludes by urging New Zealnnd producers "to take advantage of the present opportunity to the full, and so secure that share of the trade in British provincial markets to which they have always been entitled <m the merxtft of their jpfodaota**