DAIRY EXPORT PRICES

Press, Volume XCIII, Issue 27911, 7 March 1956, Page 12

DAIRY EXPORT PRICES

BUTTER CONTINUES

TO FALL CONSUMER RESISTANCE IN BRITAIN (New Zealand Press Association) WELLINGTON, March «. For the first time in six months the price received for New Zealand butter in Britain has dropped to about the equivalent of the guaranteed price. The chairman of the New Zealand Dairy Products Marketing Commission iMr W. Marshall) said today that, since the middle of January, the ex store price in Britain had dropped more or less steadily, and the market yesterday had opened for the week with New Zealand butter selling at 340 s per cwt for finest grade. He said that, in the last seven weeks, the price had fallen from 4025. In the last week it had fallen 18s from 3585. The f.o.b. equivalent of the current ex store butter price was approximately 310 s. which compared with the f.o.b. equivalent of the guaranteed price of about 311 s. Mr Marshall said the fall in prices had been brought about by consumer resistance to the high pricer, earlier this year, and also by the arrival of heavy shipments from New Zealand and Australia in recent weeks. Reduced sales in the early part of the year had shown that the very high prices were not an unmixed blessing. About 30 per cent, of the season’s butter had been sold up to February 25. and the net return had been almost 349 s per cwt f.0.b., Mr Marshall said. The surplus was about 38s per cwt, or about £1,700.000. The ex store cheese price was still 273 s per cwt for white finest and first, said Mr Marshall. The price had been practically unchanged for seven weeks. With about a fifth of the season’s cheese surplus disposed of up to February 25. said Mr Marshall, the net return on an f.o.b. basis had been approximately 232 s per cwt, compared with the guaranteed price f.o.b. equivalent of about 174 s per cwt. and giving a surplus of 58s per cwt, or about £950.000. Such a small proportion of this season’s butter and cheese had been sold that any prediction, even in the most general terms, of the likely financial result of trading in the whole season’s produce could not be justified, Mr Marshall said.