The Press FRIDAY, JUNE 12, 1936. New Zealand Butter

Press, Volume LXXII, Issue 21807, 12 June 1936, Page 10

The Press FRIDAY, JUNE 12, 1936. New Zealand Butter

New Zealand butter is at present quoted on the London market at 112s per cwt —29s per cwt higher than it was at this time last year; and the price is equivalent to about 14d per lb butterfat in New Zealand. The price has risen steadily in the last month from 88s, and in that time the premium enjoyed by Danish has been reduced from 12s to 4s, the lowest for some years. A rise in the market usually comes about this time, though generally a month or so later, and the sustained strength of the New Zealand market has given rise here and overseas to a good deal of speculation on the cause. The statistical position is undoubtedly soundLondon stocks are low'er than they have been for more than two years—but stocks were in a position equally favourable to the producer three months ago, when the market was distinctly weak. The market, according to the latest advices, is firm but quiet, but as the continued rise will almost certainly mean a rise in wholesale prices, which have been kept low recently, it remains to be seen whether the firmness will remain. Australian observers have been watching the market for New Zealand with the keenest interest, because on the fate of New Zealand butter in London largely depends the fate of exports from the Commonwealth. While they are thankful for the rise that has allowed their own product to sell better, thq Australians are showing a disposition to regard the increase with some doubt that it is natural. It has been suggested that buying has been heavy because of the uncertainty of the outlook after August 1, when the Government will assume ownership of all dairy produce for shipment, and give the farmer a guaranteed price. After August 1, the farmer will have nothing but an academic interest in the state of the London butter market, but the taxpayer will in all probability be as assiduous a student of London cabled advices as the farmer has been in the past. The present price is from id to lid higher in New Zealand equivalent than the average of the last eight or 10 years, on which the guaranteed price will be based. There is, of course, no certainty that the market will remain at or above 112s during the 12 months from August 1, but if it does, the reaction on the farming community will be interesting.