HIGH STOCKS OF BUTTER IN BRITAIN

Press, Volume XCIV, Issue 28158, 22 December 1956, Page 14

HIGH STOCKS OF BUTTER IN BRITAIN

Although known cold-store stocks of New Zealand and Australian butter have consistently declined in recent weeks, they were at the beginning of this month double those of last year. In addition arrivals have been heavy and shipments afloat are even larger. These facts explain to a great extent the reason for the fall ;n values, which has been further accentuated by the accumulation of English butter, says the latest produce market review received by the Bank of New Zealand from its London office. The English supplies were held in the hope of a selling price more in line with cost, but this hope has disappeared and some 6000 to 7000 tons is being marketed at irregular rates. As the outlet over the counter is restricted, the bulk is used for blending. Some of the largest manufacturers are also large blenders, and are using English butter at the expense of the Commonwealth.

At the time of the report New Zealand butter had dropped back to 274 s to 2765, the lowest for four years. At this level steady business has been done. It makes possible a retail price of 2s lOd. and the trade is hoping that consumption will increase sufficiently to prevent any further fall, particularly as it is expected that margarine must become dearer because of the higher cost of raw materials. Danish butter continues to sell at a landed cost of 420 s and 4215. New Zealand cheese is quoted at 280 s for coloured, and 270 s to 272 s for white, and is coming into close competition with a large make of English cheese at 260 s to 2905.