DAIRY PRODUCE

Dominion, Volume 31, Issue 74, 21 December 1937, Page 14

DAIRY PRODUCE

London Butter Prices Steady

CHEESE MARKET QUIET

The Loudon butter market closed steady on Friday, according to a report received by the Primary Products Marketing Department and issued by the Dairy Board. New Zealand salted butter was quoted at 114/-, a rise of from 3/- to 4/u cwt. on the week. . Friday’s closing quotations, with those for the previous week in parentheses, New Zealand : Salted, 114/- (110/- to 111/- - a year ago, 99/- to 100/-); unsalted! 115/- (115/- to 116/-; a year ago, 10 Australiaim halted, 113/- (108/- to ®t’i. no/., ex. 112/- (106/- to 108/-). Danish: 133/- t.0.b.; luu/- spot (130/-; 150/- to 151/-). Dutch: Unsalted, lib/-, ex. I*o/Lithuanian: Salted and unsalted, Retail prices in Loudon are unchanged, New Zealand at 1/2 to 1/3 and Danish at 1/4 to 1/5 a lb. The basic rates fixed under the guaranteed price scheme, subject to quality differentials, are 123/8 for butter and <O/44 for cheese per cwt., f.0.b., New Zealand currency. The equivalent landed prices in London are 112/- for butter and <>(/- for cheese. The guaranteed price for butter is equal to 13.25 d. per lb., f.0.b., and the current London quotations is equal to approximately 13.54 d. per lb., i.0.b., New Zealand ports. The equivalent price tor coloured cheese is 7.30 d. per lb., t.0.b., and for white with the guaranteed price of 7.54 d. Deliveries of New Zealand butter last week totalled 3357 tons. The quantity in store in London on Friday totalled 2-14 tons, as against 3680 tons a year ago. Deliveries of Australian butter were 2152 tons, the quantity in store being 1688 tons, as against 3013 tons a year ago. The cheese market closed quiet, quotations, with those for the previous week in parentheses, being as follows: — New Zealand: White, 6a/- to 6u/6 (66/6; a year ago, 63/-) ; coloured, 64/6 to 65/- (65/6; a year ago, 63/-). Australian: White: 62/- to 63/b (63/- to 65/-) ; coloured, 62/- to 63/(62/- to 64/-). Canadian: White and coloured, <2/- to 74/- (72/- to 74/-). English: Finest farmers’, 94/- to 96/(94/-). Deliveries of New Zealand cheese last week were 21,229 crates, the quantity in store being 34/765 crates, as against 20,044 crates a year ago. Deliveries of Canadian cheese were 11,819 boxes, the quantity in store being 153,498 boxes, as against 128,259 boxes a year ago. MOUNT LYELL MINING CO. Increased Production Costs In order to maintain copper production at 13,000 a year it will be necessary, in view of the decrease in the grade of ore treated, to be in a position immediately to treat 1,000,000 tons annually, the chairman (Mr. P. C. Holmes Hunt) told shareholders at the annual meeting of the Mount Lyell Mining and Railway Co. Ltd. For six years they had been engaged in bringing about a great expansion.in mining and treatment operations, which was without parallel in any other mining centre in Australia. Their policy had been to handle a sufficient tonnage of orc to ensure a production of 13,000 tons of copper per annum. As the grade of the .ore had declined so the quantity handled had had to be increased for the desired result to be achieved, and no effort had been spared iu providing the plant and equipment necessary to ensure the requisite supply of ore being forthcoming. “One important feature of the work has been that as we have progressed, in the technique of handling and treating low-grade ore, so it has been possible to increase ore reserves. As you will have seen from the report, the reserves are now estimated at some 9,990,000 tons, ol an average assay value of 1-69 per.cent, copper, equivalent to about 10 years’ supply. All treatment operations were satisfactorily carried on during the year.” The net cost of producing and realising copper shown for the year was £47 12/-, an increase of £4/17/- a ton over the cost for the previous year. When regard was had to the increase in operating costs brought about by the shorter hours and higher rates of wages in loree for the secoud half of the year,, resulting from the agreement concluded with representatives of the unions whose members are employed at Mount Lyell, and from the loading of the basic wage prescribed by the Arbitration Court, and also to the lower grade of the ore from which the copper was produced, the cost for the year was satisfactory. Referring to the outlook for the company, Mr. Holmes Hunt said:—“World capacity to produce copper is very large, and from the experience of the last few months one aspect stands out, namely, that any increase in demaud can be rapidly taken care of by increased production. In October it was announced that those producers of copper outside the United States, -who, for about two years up to January last, restricted their output, had again, agreed upon a measure of restriction with the object of adjusting production to consumption. “The general industrial position in Britain is reported good, and it has now been confirmed that the bulk of the increase in copper consumption is due to greater industrial activity rather than to armaments.

“The position in America, however, haw not been satisfactory of late. It would appear that efforts to rehabilitate industry in the United States can alone bring about improvement in consumption. “Speaking broadly,” Mr. Holmes Hunt concluded, “the all-round conditions at present prevailing do not hold out the expectation of such a good result as for the year just closed. While, however, we would like to see the price of copper at a figure a little higher than it is at present, there emerges the view that, given a maintenance of the present price, there is justification to look for a fair return on the capital invested in our enterprise.”