DAIRY PRODUCE

Dominion, Volume 30, Issue 259, 29 July 1937, Page 16

DAIRY PRODUCE

Butter Consumption Holds at 1/2 lb. Retail

(By

H.A.S.)

Both butter and cheese rose sharply last week, matching an almost exactly similar rise in the same week of last year. The butter stocks position is of special interest, for, nt 590.090 boxes, stocks are actually lower than those of a year ago, which were then 984,001) boxes. Since the l.rst of this month stocks have remained steady. Evidently the niiiintenaiKe of a 1/2 lb. retail price is not deterring cnisuiiiption. This is n matter of the very highest i iportance. For some years nuthorities and experts have told New'Zealand producers that the limit which they enn expect. for their butter is 1/- lb. retail and that their expectation of net farm returns must be based upon this foundation. After allowing for exchange appri--cintion, then deducting all costs from farm gate to London selling, the net return estimated was I/- lb. butterfat to the dairy-farmer. Most people concerned with the industry hold this belief; frankly, 1 did. too. There is now every reason to believe that a higher return may be exiiected on a free market. In the past, it has been stated again and again that margarine would oust blitter if its price rose above that 1/- lb.

During these past 18 .months great changes have taken place. Tlie raw materials front which margarine is made htj’-m greatly advanced in price, the Britisii people have become more prosperous, and monetary policy has created a period of higher price levels, It would now appear possible for butter to return producers 1/2 or even 1/3 lb. on a free market during the coming few years. Latest quotations arc:—

N.Z. Finest Salted This week, 117/-. Last week, 115/-. A month ago, 109./- to 110/-. A year ago. 118/- to 119/-. 117/- equals 14.46 d. lb. butterfat payout.

N.Z. White:— This week, 74/- to 74/6. Last week, 72/- to 72/6. A month ago. 74/-. A year ago, 62/6 to 63/'-. 74/3 equals 18.36 d. lb. butterfat pay-out.