High Prices For Butter In U.K. May Soon End

Press, Volume XCVIII, Issue 29058, 21 November 1959, Page 16

High Prices For Butter In U.K. May Soon End

(N.Z. Press Assoctatton—Copyrigtit)

LONDON, Nov. 20.

The opinion in trade circles in London is that the period of high prices for butter is drawing to a close and that a drop can be expected shortly. Apart from the reluctance which now seems apparent to negotiate at current prices, a very firm pointer was given when the Canadian Government found this week it could not get the price it wanted for the 10.000.00Q1b it proposed to sell to Britain and decided to release only 2,000,0001 b. Large supplies on the way from New Zealand are understood to have influenced this decision, but the present situation, it is pointed out, is a typical example of a small drop in supply bringing about a sharp increase in price. There now seems belated recognition that both New Zealand and Australia could have made much more money for their supplies had they sold to other countries that were short of butter because of general drought conditions this year. A letter to “The Times” by a buyer-for one of the biggest chain stores dealing in butter puts the point forcibly. “Do let us be fair,” he says. “The United Kingdom relies on New Zealand as her principal supplier of butter, followed by Denmark and Australia. “Responsible” Approach “The housewives of this country should be fully informed that both New Zealand and Australia have taken a very responsible approach to the marketing of their butter. From these three countries the United Kingdom will receive approximately 330,000 tons of butter this year. I would like to repeat: 330,000 tons. The United Kingdom average production is 29,000 tons per year. “Can it really be suggested that the farmers of this country would be prepared to supply this huge quantity of butter at a retail price of, say, 3s to 3s 4d per lb?

“I seriously wonder if, in similar circumstances, British housewives would have received the

same consideration from the United Kingdom farmers as they have received from the farmers of New Zealand and Australia. It is a very great pity that more press acknowledgement has not been given to these two countries for the way in which they have continued to support the British butter market.”

U.K. BUTTER MARKET x Retail Prices Of 4s 3d To 4s 6d per lb In spite of the efforts of the authorities to keep butter prices on the London market at a stable level, the demand has been so great that wholesale prices have advanced, and ( ' New Zealand butter is retailing 4s 3d to 4s 6d a lb. In its latest market review, the London office of the Bank of New Zealand states that conditions in the butter market in recent weeks have been exceptional. Belgium, France and West Germany have constantly sought supplies from other European countries, as a result of which reduced European supplies on the English market have pushed prices very high. Currently Danish is bringing 484 s a cwt and Dutch 600 s. 7 . The bank says that the supply position is difficult, but the position is a temporary one, and has been aggravated by press articles forecasting price increases. The trade feels there is sufficient butter to tide over the present acute stage. New Zealand butter Is now quoted at 409 s to 41Qs ex store, with Australian Is less. After a long run at one price that quotation for New Zealand cheese has advanced by 10s to 300 s to 301 s a cwt. New season’s New Zealand and Australian cheese in quantity will relieve the

shortage, but in the meantime the market remain* very firm.