BUTTER MARKET

Press, Volume LXXIII, Issue 22243, 6 November 1937, Page 13

BUTTER MARKET

GOOD PRICES PREDICTED SHORTAGE OF LONDON STOCKS Dairy cows have been selling very cheaply at recent Addington markets, though it is fair to say that the bulk of the entries have been of indifferent dairy standard. That the market was lifeless during the period of low prices and the increasing production costs can scarcely be wondered at, but the tremendous spurt in butter values does not seem to have been taken much notice of locally. Had they been it is certain that the markets of the last few weeks would have made some response. Some good dairy cows and heifers were sold on Wednesday at from £8 to £lO. and a cow would not need to be anything out of the ordinary as a butter producer to pay its way with butter at 152 s per cwt —that is, if the guaranteed price were extended to near this level. If there could be any assurance that the present values would remain for some time, the addition of a few cows to herds being

milked for the export butter trade would be good business.

Though there can be no assurance of this, seasoned opinion believes that values will remain firm, even if slightly lower. It, is contended that ii the present consumption of butter is maintained in Britain and on the Continent, there appears to be little likelihood of an accumulation of stocks in London during the next few months. New Zealand’s season has opened well and the new malic of butter is already reaching the market and will do so in increasing quantifies from now on. Normally prices decline during November and early December, when a large quantity of butter becomes available from New Zealand and Australia. Altered conditions are operating at present. South Africa, usually an exporter, is buying butler from London. Germany is absorbing more Continental supplies and Russia is using most of her own output, with the result that supplies to London from Europe have steadily declined. Winter is now upon the Northern Hemisphere, further curtailing production.

Australia’s Position As matters stand, a great deal appears to rest upon Australia's output. The season there started unfavourably and early shipments are some 2000 tons below last year's quantity. Recent reports show that production in New South Wales is not increasing as it should at this time of the year. In Victoria all districts report splendid rains with prospects for a favourable season. Supplies there are increasing rapidly, while the South Australian output is also growing. In Queensland drying winds have largely'nullified good rains and the output is lower than last year.

In these circumstances Australian conditions will need to become exceptionally favourable in the later months to recover the leeway already lost. In the meantime the Australian Dairy Produce Board has appointed a special committee to launch a campaign to increase consumption of butter in Australia. Any success its efforts may accomplish will be a valuable offset against any potential increase in Australia’s surplus for export. Spot stocks are particularly light. The Imperial Economic Committee estimated all stocks of butter in store at only 377,022 boxes, compared with 943,068 boxes at the same time last year. New Zealand stocks at the end of last week amounted to 2356 tons, against 3666 tons a year ago. The Australian quantities were 435 tons, against 916 tons last year. Local Milk Supply

One useful result of the increased London price may be to place the big number of dairymen supplying Christchurch on a better footing. Cut-throat competition, overlapping of delivery services ,and many other disabilities have resulted in the milk supply business being one of the poorest paid industries in the province. The general public is not enamoured of municipally or State-controlled services, but the position of the milk supplier is that anything is preferable to the present state of affairs. Should some of the suppliers decide to change over to supplying the factories, it will hasten the time when the local supply business will be put on a reasonable footing, otherwise the city may find itself short of milk.

The freezing season for fat lambs in Hawke’s Bay commenced on November 1. The lambs will be loaded by the Karamea at Napier on Monday, and they will catch the London Christmas trade. The numbers available for the works are considerably less than was the case last year as a result of the poor conditions early in the season and the weights are expected to be 31b lighter than was the case in 1936. Those killed the first day generally averaged about 301 b, as against an average of 331 b for the first shipment last season. No announcement regarding the opening schedule was announced on the day killing commenced.

Queensland has set a new fashion in merino sheep breeding by admitting to registration the first stud flock of pure polled merinos. Established on the same lines as the Double-Standard Polled Hereford cattle, namely, by breeding from purebred stock which was naturally polled, the merinos have continued to throw polled stock. One of the advantages of polled merinos is likely to be the fact that they are less likely to blow-fly strike than are the horned variety, and for this reason are likely to be in demand.