BUTTER MARKET IN BRITAIN

Press, Volume XC, Issue 27407, 21 July 1954, Page 13

BUTTER MARKET IN BRITAIN

FLUCTUATIONS SINCE > DERATIONING 1 ASSESSMENT BY TRADE ; JOURNAL i (N.Z. Press Association—Copyright) LONDON, July 20. The “Grocer,” a trade journal, , is not sq optimistic about butter prices since derationing as the recent sur- , vey by the Butter Information Council. The council reported that the number of traders with an increased demand for butter two months after the end of rationing had doubled, compared with the survey taken in the weeks immediately after derationing. The “Grocer” says that reports from the retail trade indicate that a “considerable section” of the public resents the present high prices, and that the demand is slightly lower than when butter was rationed. The “Grocer” adds a warning: “If this feeling persists, butter-producing countries may have to acclimatise themselves to lower prices.” The “Grocer,” after detailing recent negotiations between the British Food Ministry and New Zealand, says that, although on August 1 New Zealand butter will be free from control by the Food Ministry, this does not mean that the trade itself will be free because New Zealand producers intended to use their own marketing organisation in the United Kingdom with a restricted number of outlets. ‘Something like semi-official control would appear to be their aim, but when free trade gets once more into full swing, any form of restriction may go awry,” says the “Grocer.” “For the time being, the position is somewhat complicated by the fact that the |

Ministry is getting a better price for its stocks than it pays to producing countries under contract. When the Minister was questioned about thia in the House of Commons last month, his reply was that the price ‘is decided by commerical considerations of supply and demand.’ “That is quite right and proper but the Ministry’s stocks will not last for ever. W’hat will happen when they cease? That is the question Denmark will soon have to try to answer. The Danish butter contract is due to end next year; on or about July 27 negotiations are to take place with the Ministry as to what price shall be paid during the next 12 months, or whether the contract shall be terminated at once on the precedent of New Zealand. “If Denmark decides to stand by her contract, and is given a better price than that offered to New Zealand, then the Minister will be bound in honour to re-open talks with the Dominion. On the other hand, Denmark any decide that a ‘free-for-all* market might be in her own best interest.”